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Good luck with that

MEMPHIS/ATLANTA/BONN: March 31, 2016. Observers who claim Amazon.com plans to replace the services of FedEx or UPS or DHL obviously don’t know the expedited logistics industry.

An ACMI deal with the Air Transport Services Group for 20 B767s is not a test, it’s a back up.

When Jeff Bezos was still in his garage, FedEx was well on its way to growing an unmatched global delivery network that today uses 652 aircraft to deliver four million packages a day via 10 hubs and 375 airports in 220 countries.

Pundits who argue that Amazon.com would save itself a bucket load of money by operating its own integrated logistics solution presumably have “done the numbers” and decided the cost of building a better, cheaper FedEx is less than the cost of paying the company to deliver its orders.

Alternatively once Fred Smith retires, Bezos could try and buy FedEx rather than re-invent the expedited logistics equivalent of the wheel.

Either way, good luck with that.

- Simon Keeble is the editorial director of Freightweek

 

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