The ambitious plans of Amazon Logistics17. December 2019
The ambitious plans of Amazon Logistics
New York, December 17, 2019
Amazon Logistics is currently shipping approximately half of its own packages in the U.S. and will overhaul both the United Parcel Service (UPS) and FedEx by 2022, according to recently published estimates by Bank Morgan Stanley analysts. Morgan Stanley analyzed package data from around 70,000 Amazon transactions to determine the results.
Amazon’s volume for 2019 is 2.5 billion packages, while FedEx delivered 3 billion and UPS 4.7 billion. By 2022, Amazon is expected to reach 65 percent of its total orders in the United States – or 6.5 billion packages a year.
According to Morgan Stanley, Amazon’s parcel deliveries are largely “urban”. The retailer relies on third-party couriers for many of its deliveries in rural areas. However, only a week before Christmas, third-party providers were instructed on Amazon not to use FedEx Ground and Home for prime shipments. The Wall Street Journal reported that an Amazon email said the ban would continue until the parcel courier improves delivery performance.
The reason for this measure: Amazon is less dependent on couriers from third-party providers such as FedEx and UPS because it is building its own delivery network at high speed. According to a request from GeekWire, Amazon Logistics has doubled the fleet of its long-haul tractor units to 20,000 compared to the previous year. This was announced by Dave Clark, Senior Vice President of Operations at Amazon.
With the company investing billions in improving its delivery infrastructure, particularly because one-day delivery is the new shipping standard for Prime, planes and parcel nodes will make up a large part of it. Clark indicated that Amazon plans to have 70 cargo planes in its fleet by 2021.
One of the places where the plane will land is taking shape. Clark shared a photo showing the progress of the 3 million square meter air freight center being built at Cincinnati, Northern Kentucky International Airport.