Winners and losers in e-commerce logistics as Amazon moves 1 billion lbs by air

Amazon’s own-controlled air operation in the United States is currently about 20% the size of FedEx, and 15% the size of UPS, measured in tonnage carried. In the eight months ended August 2019, Cargo Facts Consulting estimates that Amazon moved over 1 billion pounds (more than 453,000 tonnes) on dedicated Atlas and ATSG flights, an increase of 29%, year-over-year. Growth has accelerated since the company upgraded its prime offering from two day to overnight shipping. While ATSG, Atlas and ASL in Europe have done well out of dedicated e-commerce flying, express companies such as Fedex, UPS and DHL have seen declining yields, while U.S. Postal Service profits have gone from bad to worse.

In our recent Global E-Commerce Logistics Outlook, we took a close look at where the opportunities and risks are for the transportation providers are. Subsequent research has centered more deeply on the evolving e-commerce platform strategies and profits (or lack thereof) and what this means for the logistics business going forward. And our Air Express Outlook 2020-2024 looks specifically at how the express business has and is expected to develop.

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