Amazon expands fleet of Boeing 767 cargo planes, announces first Mississippi fulfillment...

[Shawn Knight]

Bottom line: Amazon's is wise to create its own air transportation network. By cutting out the middle man, Amazon is saving money and gets to move products around the country on its own schedule. FedEx and UPS can't be too happy with these developments.

Amazon on Friday announced it is leasing 10 additional Boeing 767 – 300 cargo planes for its Amazon Air operations, pushing its total fleet to 50 aircraft.

Amazon launched its air transportation network in mid-2016 as the next step in reducing its reliance on traditional couriers like FedEx, UPS and the US Postal Service. By cutting out the middle man and routing its own flights, Amazon is likely saving a significant amount of money in the shipping department.

The 10 additional aircraft are coming from Air Transport Services Group, Inc. and will join the Amazon Air network over the coming two years. Its current fleet of 40 aircraft service more than 20 airports, making Amazon’s two-day shipping possible in nearly every part of the US.

Amazon on Friday also announced its first fulfillment center in Mississippi.

The 554,000-square-foot fulfillment center will create 850 full-time jobs paying a $15 minimum hourly wage and benefits from day one. Located in Marshall County in Northern Mississippi, the facility’s close proximity to a FedEx hub and the Memphis International Airport was no doubt instrumental in Amazon’s decision to choose this location.

Lead image courtesy EQRoy via Shutterstock

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https://www.techspot.com/news/77977-amazon-expands-fleet-boeing-767-cargo-planes-announces.html

 

[btfsttg]

Fedex has muffed 30% of the deliveries made to me since the beginning of time.

 

[Uncle Al]

I'm a little surprised that, with their volume, they haven't made an attempt to buy out UPS and give priority to their delivery services ..... but, the day ain't over yet!

 

[toooooot]

I'm a little surprised that, with their volume, they haven't made an attempt to buy out UPS and give priority to their delivery services ..... but, the day ain't over yet!

I think thats a good idea

 

[Uncle Al]

I think thats a good idea

Not to worry ..... that will no doubt be my last good idea for 2018 ...... more or less ..... LOL

 

[ShObiT]

I'm a little surprised that, with their volume, they haven't made an attempt to buy out UPS and give priority to their delivery services ..... but, the day ain't over yet!

I think that's a good idea

They only have to drain them first to get the value down, so they can get it at a bargain price, hence 4-5 years renting the planes, and just as one of the middle man is on track to be out of business, the make a Bid to save it. It would be a good plan for me, and Jeff Bezos is no stupid to spend 15 billions when he can get them down to maybe 3.

 

[brucek]

I'm a little surprised that, with their volume, they haven't made an attempt to buy out UPS and give priority to their delivery services ..... but, the day ain't over yet!

I think that's a good idea

They only have to drain them first to get the value down, so they can get it at a bargain price, hence 4-5 years renting the planes, and just as one of the middle man is on track to be out of business, the make a Bid to save it. It would be a good plan for me, and Jeff Bezos is no stupid to spend 15 billions when he can get them down to maybe 3.

Maybe some truth to that, but I think also one of the motivations for all this was adding new, incremental shipping capacity. Putting more total planes into shipping service and adding another major player (themselves) is more likely to do that in the short term than buying an existing one and leaving just the original number of planes and players.

 

[GeforcerFX]

Considering the overall increasing demand for air freight this doesn't hurt the middle man as much as people think it does. UPS and FedEx were prioritizing amazon to keep a good business relationship (easy money) there was always demand for other routes flying other cargo and that demand is growing at a steady 5% a year. Not to mention 50 767 is a pretty small fleet compared to Fedex and there feeder network, and UPS has some very efficient long distance routes in service for air freight. If anything I would say the market was there for another major player in the parcel and freight business, amazon has the need and capital to make it happen.

 

[Dimitrios]

I have had no issues with UPS but with Amazon Prime and ordering a few things I notice UPS has been leaving my packages at the wrong house on my street 3 times in one month! Believe it or not FEDEX lately has been doing a better job! I thought I would never say that. I bet there is pressure with the circle of UPS, FEDEX, AMAZON & WALMART. What will the future hold?