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Feb 3, 2017

I - COURIERS & RETAILERS' WAR * USA: Amazon.com plans first air cargo hub

* Oregon - Retailer expects facility at Cincinnati/Northern Kentucky Airport


--- Amazon.com Inc. said Tuesday it plans to build its first air cargo hub to accommodate its growing fleet of planes, signaling the company is ramping up its expansion into transporting, sorting and delivering its own packages... The Seattle-based retailer said it expects the new air hub, located at Cincinnati/Northern Kentucky Airport in Hebron, Ky., to create more than 2,000 jobs. The move will lessen its dependence on traditional carriers, including United Parcel Service Inc. and FedEx Corp., both of whose largest hubs are nearby... Last year, Amazon said it was planning to lease 40 cargo planes, 16 of which are currently in its fleet. It also brought on a dedicated network of 4,000 semi trailers to increase trucking capacity and has a fleet of citizen courier Flex drivers making deliveries in major metro areas... Amazon’s goal is to eventually haul and deliver packages for itself as well as other retailers and consumers—making it a direct competitor with UPS and FedEx, according to people familiar with the matter. The air cargo hub follows Amazon’s recent ocean debut, handling shipment of goods by ocean to its U.S. warehouses from Chinese merchants selling on its site, taking on a role it previously left to global freight-transportation companies... It appears—for now—Amazon is more concerned with shoring up its own volume to ensure it has enough capacity during busy times like the holidays than competing with the carriers, analysts said... Amazon’s airport location choice means it will be neighbors with Deutsche Post AG’s DHL, a major provider of international shipments to the e-commerce giant. DHL also has a big hub at the Cincinnati airport. That could facilitate transferring shipments between planes and further lessen Amazon’s dependence on UPS and FedEx... 
(Photo by GREAVES/REUTERS: FRED Workers prepare orders for customers at an Amazon fulfillment center in Tracy, Calif., in 2015)   --  Seattle, ORE, USA - The WSJ, by LAURA STEVENS - Feb. 1, 2017

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