Research and Markets: Amazon Leases 20 Boeing 767s to Expand its Delivery Network

Mar 10, 2016, 07:10 ET from Research and Markets

DUBLIN, March 10, 2016 /PRNewswire/ --

A recent report published on Research and Markets expects the domestic freight market in the United States to grow at a CAGR of 4.52% in terms of revenue, and 2.63% in terms of volume between 2015 and 2019. However, the report states that an increase in government regulations has resulted in high operational costs in the U.S.

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E-commerce giant Amazon has signed a deal to lease 20 Boeing 767 freighter aircraft to handle more of its own deliveries in the United States. After leasing five freighters last year for a trial network, reports suggest that these planes will now go into operation on April 1.

A report on the Global Logistics Market predicted growth of 8.44% during the same period and also identified the high cost of operation as a major challenge. It highlighted a trend of companies outsourcing some, or all, of their supply management functions such as transportation and warehousing. But Amazon, who currently rely on other companies for delivery services, seem intent on managing their own shipping and distribution services rather than sourcing from competitors.

Amazon currently relies on United Parcel Service Inc and FedEx Corp to deliver most of its packages, and spent an estimated $11.5 billion on shipping last year. A report on the global airfreight forwarding market identified a trend of carriers charging increased freight rates to forwarders and expected it to have a negative effect on growth.

Amazon have been exploring their delivery options by adding truck trailers, freight ships and testing drone deliveries as they look to challenge the world's biggest logistic companies. The duration of the Boeing leases will be five to seven years.

For further information on this topic, and a full list of all related documentation, please visit the Logistics section at http://www.researchandmarkets.com/rm/MOKQ.

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Source:  http://www.reuters.com/article/us-air-transport-sr-amazon-com-idUSKCN0WB1LA

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