[080216.EN.BIZ] Amazon Dismisses Tales It Is Looking To Run Its Own Transport, Logistics

E-COMMERCE giant Amazon has squashed speculation that it was planning to enter the world of transport and logistics and take on the likes of FedEx and UPS, saying that this is not the case.

The company was reported to have chartered aircraft in the US and Europe over Christmas in order to move cargo across those continents.

The company says its transport operations were only meant to cover the peak season rush because its logistics providers had struggled to meet the extra demand in the past, reported Air Cargo News.

Amazon chief financial officer Brian Olsavsky said: "What we've found is in order to properly serve our customers at peak we've needed to add more of our own logistics to supplement our existing partners - that's not meant to replace them.

"Those carriers are no longer able to handle all of our capacity that we need at peak. They have been and continue to be great partners and we look forward to working with them in the future. It's just we've had to add some resources on our own."

However, Amazon has invested in its own trucks to move cargo between its warehouses and source centres.

Last year, in the US, Amazon ran its own air freight operation out of Wilmington, Ohio, through lessor Air Transport Services Group (ATSG) and subsidiary ABX. In Europe, reports said the online retailer has been flying five times a week from Katowice in Poland to Luton, East Midlands or Doncaster airports and then back to Poland via Kassel in Germany.

The operation was being run in co-operation with German logistics operator DB Schenker, with a Boeing 737 leased from ASL France.

Source : HKSG.