Amazon Air Cargo Takes On FedEx and UPS

The carrier now serves domestic networks in US, Europe, the Middle East, Africa (EMEA), and Asia.

E-commerce giant Amazon has officially entered the for-hire air cargo market, offering space on its extensive fleet of cargo jets to freight forwarders and businesses. This expansion goes beyond Amazon’s parcel delivery service and is positioned to compete with airfreight leaders like FedEx and UPS.

The e-commerce giant’s air cargo division, Amazon Air, was founded in 2016 to meet the demands of Prime’s one- and two-day shipping commitments. The fleet now consists of over 100 aircraft operating from various U.S. airports. Recently, Amazon launched a website that allows businesses to book air cargo shipments directly, offering a range of services, including one-day shipping, ad-hoc capacity, and charters. This expansion enhances Amazon’s ability to compete more effectively with established players like FedEx and UPS, who have long dominated the air cargo market due to their extensive logistics networks and service offerings.

“Amazon Air Cargo is now open for business serving domestic networks across North America, EMEA, and Asia,” the company announced on LinkedIn. “We’re ready to handle, transport, and deliver your goods safely, securely, and efficiently — on time, every day.”

Amazon’s air logistics launch has broadened the shippers and freight forwarders network. The flexibility to submit shipments on demand and book cargo space makes it attractive for businesses. Amazon Air Cargo can handle various goods, including perishable items like fresh fruits and vegetables, pharmaceuticals, oversized cargo, and hazardous materials.

“We’re always working to develop new, innovative logistics solutions that support Amazon customers,” the company said in a statement to Air Cargo News.

“Amazon Air Cargo has been offering third-party shippers access to Amazon’s logistics network to deliver air shipments with speed and reliability since 2019, and we are excited to expand the service to more cargo customers now.”

Implications for the African Air Cargo Market

While Africa awaits the full rollout of this innovation, Amazon’s entry into the for-hire air cargo market holds significant implications. With the continent’s expanding e-commerce sector and rising demand for efficient logistics solutions, Amazon’s move could enhance the supply chain by improving delivery speed and reliability, reducing costs, and fostering greater competition among logistics providers. This development may also lead to increased investment in infrastructure and technology, further strengthening the supply chain ecosystem in the region.

• Competitive Pricing and Enhanced Services: Amazon’s competitive pricing strategy may lower air freight rates, benefiting African businesses and consumers. Additionally, enhanced services and a reputation for efficiency and customer service could improve logistics experiences for African shippers.
• Infrastructure Development: Amazon’s operations may stimulate investments in airport infrastructure, cargo handling facilities, and associated services across Africa.
• Job Creation: The growth of the air cargo industry could lead to new jobs in logistics, transportation, and related fields.
• Improved Connectivity and Accessibility: Amazon’s extensive network of cargo jets could enhance connectivity between African cities and global markets, leading to shorter transit times and lower costs. This will facilitate easier access for African businesses to international markets, particularly for perishable goods and time-sensitive products.

Overall, Amazon’s entry into the African air cargo market presents a substantial opportunity for the continent. By improving connectivity, lowering costs, and enhancing services, the company could significantly contribute to economic growth and development. However, successfully navigating the challenges and capitalizing on these opportunities will require thoughtful planning and strategic execution.