eCommerce Continues to Rise & Amazon Continues to Dominate
The Combined Impact on Air Freight
The colossal eCommerce middleman, Amazon, sets to dominate another industry model as online activity and sales continue to gain momentum, increasing the upsurge in air freight shipments. What does this mean?
Amazon plans to expand their domestic network on cargo flights from Cincinnati/Northern Kentucky Airport (CVG) with potential run way space for 100 freighters, to Chicago Rockford International Airport (RFD), Wilmington Air Park in Ohio (ILN), and Alliance Fort Worth Airport (AFW), set to gain implemented traction by Q2 of 2019.
By diversifying U.S. based operations, Amazon inflates their comprehensive flight control as they set to increase predictive frequencies. The online giant currently exploits 72,000 square-foot at RFD, consistently flying 7 planes from the hub, daily. “According to RFD’s executive director, Mike Dunn, Amazon plans to increase its capacity with a 120,000 square-foot addition, to be completed in mid-2019. Dunn said he expects to witness flight frequencies from the carrier [to] increase, in turn.” [via Nina Chamlou Air Cargo World]
Amazon currently holds a fleet of forty 767’s with a double down prediction in their near future – based on these aggressive hub expansions, a fleet amplification would undoubtedly be justified. The company has been on a prioritized mission to drastically increase delivery times. They currently employ Amazon Flex, over 4,000 trucks, 125 fulfillment centers, and 20 fully automated sortation centers essentially governed by Artificial Intelligence. As Amazon continues to invest directly into their last-mile delivery capabilities (drones subject to inclusivity), the expansion is ostensive and progressive with chatter revolving around competitive analysis from the likes of FedEx and UPS. While this metric is prognostic in nature, the notable growth increase certainly deserves attention.
What does all this mean for your current air freight exports? Could this directly impact your current logistics partner? Contact us today for a free consultation.