[EXCLUSIVE] Amazon building its own overnight airfreight operation, sources say

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Source: Public.Resource.Org

Amazon.com Inc. is creating a logistics operation that will include overnight air operations in the US domestic market, potentially including the acquisition of at least 20 freighter aircraft, Cargo Facts has learned.

Currently, Amazon ships most of its parcels through United Parcel Service, FedEx, and the United States Postal Service. The change to an inhouse logistics venture would seismically change the airfreight industry, as the majority of new air cargo activity around the world has come from e-commerce companies — and much of it from Amazon, in particular.

Last quarter, Amazon had net sales of about $25.4 billion, and a total of $100.6 billion in the previous 12 months. Amazon’s sales are growing at an annual rate of 18%, according to the company. Amazon’s market capitalization stands at about $316 billion.

Amazon’s efforts are ongoing and fluid, but sources tell Cargo Facts that the world’s largest e-commerce company by revenue is negotiating for the acquisition of perhaps 20 767 widebody freighters from The Boeing Company. By considering the ownership of a fleet of aircraft Amazon is signaling that it will take in house at least some of the massive logistics and shipping services currently provided to it by UPS, FedEx and USPS.

Amazon did not respond to a request for comment. FedEx did not respond to the substance of our request for comment. According to a UPS spokeswoman, “We don’t comment on speculation about Amazon, who continues to be a valued customer.” Cargo Facts has requested comment from USPS.

David Vernon, an analyst at Bernstein Research who tracks the shipping industry, has estimated that USPS handled 40% of Amazon’s volume last year — or almost 150 million items. UPS, meanwhile, is estimated to handle 20% to 25% of Amazon shipments, while FedEx is said to ship 15% to 20% of Amazon’s annual load, according to the equity research firm.

Cargo Facts subscribers can read additional details on Amazon’s plans here.

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64 thoughts on “[EXCLUSIVE] Amazon building its own overnight airfreight operation, sources say

  1. WOW! I wonder if the new/pre-owned B763s will be all white or will they have a brand new Amazon livery? Or will it be called Amazon at all?

  2. This move on the part of Amazon is probably a long-term strategic move. If they make it work internally (+ considering the difficulties UPS, FED EX and USPS have had the past few years at this time of the year), Amazon ‘sees’ long term market opportunities. Add drones to the picture, which Amazon has been ‘developing,’ you can visualize their long term thinking. UPS, FED EX and USPS may have a new competitive neighbor.

  3. Interesting, the options are endless – Amazon Web Services – started with them having built a huge capability in computing they didnt fully need all of the team – so they started selling off and are now the biggest supplier of cloud services out there by a factor of 10. Could they also bring some innovation to the shipping business I wonder.

  4. […] including potentially buying “perhaps 20” large 767 freighter jets from Boeing, according to Cargo Facts. (Amazon wouldn’t likely operate the actual flying, but would control the […]

  5. […] to lease 20 Boeing 767 jets to provide air delivery services for its fulfillment infrastructure. Cargo Facts reports Amazon is “negotiating for the acquisition of perhaps 20” […]

  6. […] [EXCLUSIVE] Amazon building its own overnight airfreight operation, sources say | Cargo Facts Where do we apply […]

  7. […] die vliegtuigen worden gehuurd dan wel gekocht, is nog onduidelijk. Volgens The Seattle Times beschikt Amazon […]

  8. […] die vliegtuigen worden gehuurd dan wel gekocht, is nog onduidelijk. Volgens The Seattle Times beschikt Amazon […]

  9. This sounds like a de-bottlenecking operation, to prepare planeloads of labelled goods and deliver them to Fedex/USPS/UPS and overseas to their local delivery hubs. Can also be used for inshipped bulk goods.
    Removing this kink in the shipping process fits a fleet of 20 of these planes employed as shuttles.

  10. […] a move sure to transform the nation’s overnight delivery industry, the Seattle-based firm is reportedly negotiating with Boeing for lease of 20 […]

  11. […] Amazon might soon soar into the air cargo business. The online retail giant is in negotiations to lease 20 Boeing 767 freighter jets with the aim of launching its own air cargo service, according to reports from several media outlets, including VICE’s Motherboard, The Seattle Times and Cargo Facts. […]

  12. […] Amazon is creating a logistical system that will include an overnight air freight line in the United States, the shipping news site CargoFacts reported. […]

  13. […] system that will include an overnight air freight line in the United States, the shipping news site CargoFacts  and the Seattle […]

  14. […] Drones can wait. Amazon.com is looking into leasing 20 Boeing 767 jets to start its own air-delivery service, according to reports in the Seattle Times and Cargo Facts. […]

  15. […] Drones can wait. Amazon.com is looking into leasing 20 Boeing 767 jets to start its own air-delivery service, according to reports in the Seattle Times and Cargo Facts. […]

  16. […] Drones can wait. Amazon.com is looking into leasing 20 Boeing 767 jets to start its own air-delivery service, according to reports in the Seattle Times and Cargo Facts. […]

  17. […] nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  18. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  19. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  20. […] Drones can wait. Amazon.com is looking into leasing 20 Boeing 767 jets to start its own air-delivery service, according to reports in the Seattle Times and Cargo Facts. […]

  21. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  22. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  23. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  24. […] nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  25. […] Cargofacts 网站的独家报道,亚马逊正计划开展在美国本土的隔夜空运业务,包括租借至少 […]

  26. I think that the “best case” scenario for Amazon is to lease entire cargo flights from UPS or FedEx. That way, they will have a greater capacity to direct their own air services, without having to invest in operating their own fleet. Companies like UPS and FedEx can operate scaled-up suppy-chain logistics operations in far more efficient capacity compared to what Amazon can do now. It certainly is not in Amazon’s best interest to plonk in massive amounts of resources to start end-to-end logistics from scratch.

  27. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  28. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  29. […] Amazon might soon soar into the air cargo business. The online retail giant is in negotiations to lease 20 Boeing 767 freighter jets with the aim of launching its own air cargo service, according to reports from several media outlets, including VICE’s Motherboard, The Seattle Times and Cargo Facts. […]

  30. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  31. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  32. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  33. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  34. […] Cargofacts 网站的独家报道,亚马逊正计划开展在美国本土的隔夜空运业务,包括租借至少 […]

  35. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  36. […] Cargofacts 网站的独家报道,亚马逊正计划开展在美国本土的隔夜空运业务,包括租借至少 […]

  37. […] las operaciones nocturnas dentro de los Estados Unidos, pero aún no es claro si éstos serían adquiridos por Amazon de forma definitiva o arrendados a […]

  38. […] that will include an overnight air freight line in the United States, the shipping news site CargoFacts  and the Seattle […]

  39. Maid sense. My Contention has been that Amazon is really a supply chain company. They provide everything needed between the manufacturer and the consumer. They provide both branded and white label services that allow you to run your own site, market through their site, warehouse, ship, bill, etc. You can solely use Amazon or pick and choose the capabilities you need. The physical transport is their one obvious omission.

    However, I expected it to come as a merger/bid for either UPS or FedEx.

  40. […] Amazon constructing its personal in a single day airfreight operation, sources say Amazon.com Inc. is making a logistics operation that may embrace in a single day air operations within the US home market, probably together with the acquisition of at the very least 20 freighter plane, Cargo Facts has discovered. Currently, Amazon ships most of its parcels by way of United Parcel Service, FedEx, and the USA Postal Service. The change to an inhouse logistics enterprise would seismically change the airfreight business… Cargo Facts […]

  41. Have read another rumor in Nov about Amazon possibly taking over the old DHL hub at Wilmington Air Park in Ohio using rented planes. Plenty of recent chatter supporting this idea, fwiw

  42. […] but the ecommerce beast’s next meal may be the entire shipping segment of the supply chain. The airfreight trade pub Cargo Facts broke the news that Amazon is considering its own fleet and air logistics […]

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  44. […] Drones can wait. Amazon.com is looking into leasing 20 Boeing 767 jets to start its own air-delivery service, according to reports in the Seattle Times and Cargo Facts. […]

  45. […] Cargo Facts : [EXCLUSIVE] Amazon building its own overnight airfreight operation, sources say […]

  46. […] Cargo Facts : [EXCLUSIVE] Amazon building its own overnight airfreight operation, sources say […]

  47. […] planning to lease or buy 20 Boeing “767” jets to step up its game in fast delivery. (Source: “Amazon building its own overnight airfreight operation, sources say,” Cargo Facts, December 17, […]

  48. With it with come all the baggage/overheards. Post-holders, certifications, training, maintenance, etc. It will be interesting to see what will come out of it.

  49. I think u will see Amazon own the planes for strategic security, then contract operators much as the DHL model in CVG.

  50. […] planning to lease or buy 20 Boeing “767” jets to step up its game in fast delivery. (Source: “Amazon building its own overnight airfreight operation, sources say,” Cargo Facts, December 17, […]

  51. […] Remember when we were always hearing about how Amazon was going to be using drones to deliver packages?  Well, it seems Amazon’s decided to step up their game, as the company is looking to lease 20 Boeing 767 jets to start its own air-delivery service.  This news comes from the Seattle Times and Cargo Facts. […]

  52. I think that Amazon could be gearing up to buy some regional parcel companies. Regionals cover most of the population centers of the USA, would just need a more reliable way of moving packages from hub to hub. For remote destinations, could use USPS to deliver, like RPS, the predecessor of FEG did before they achieved 100% USA coverage. Others like Avon Cosmetics have tried this, but did not have Amazon’s resouces. IF anyone can make a 3rd delivery company a winning proposition, Amazon can!

  53. […] in talks to lease Boeing jets to launch its own air-cargo business. Now Cargo Facts reports in Amazon building its own overnight airfreight operation, sources say that “Amazon.com Inc. is creating a logistics operation that will include overnight air […]

  54. […] Amazon is increasing its logistics infrastructure in all dimensions. It is expanding its Uber-like package delivery service Flex and is experimenting with airplanes, to name just two examples. There are rumors Amazon is already building its own overnight airfreight operation. Cargo Facts: […]