Continuing its relentless push into logistics to shore up carrier network capacity issues, Amazon has struck a deal with major air transport firm Atlas Air of Purchase, NY, leasing 20 of its Boeing 767-300 jets and taking up to a 30% stake in the company. Atlas is also a supplier of transport planes to UPS.
A final hurdle to FedEx’s proposed $4.8 billion acquisition of Dutch carrier TNT Express NV has been cleared via an unconditional approval from the Chinese Ministry of Commerce. The deal has already been blessed by authorities in the EU and Brazil, after an initial challenge last fall by the former. The deal will bring FedEx close to parity with UPS in Europe, or possibly launch it into second place behind EU market leader DHL.
FedEx told analysts on a third quarter call that Amazon was simply addressing capacity issues with its own assets a la other major retailers, so they weren’t worried about the business. For the quarter, FedEx’s net income fell 19% to $507 million, while Ground revenue was up 30% to $4.41 billion. However higher costs due in part to network expansion and peak season demand caused the segment’s operating income to drop from $559 million to $557 million.
In a move aimed at better understanding the inner workings of the same-day delivery model, UPS has purchased a stake in crowdsourced delivery startup Deliv. Just how UPS will leverage this relationship and what it learns remains to be seen, but it surely has its eye on the burgeoning same-day delivery space, including competitor FedEx’s service for Neiman Marcus and others.
Cyber Weekend, while a boon for retailers, hit UPS’ on-time performance, according to ShipMatrix. UPS says its network is operating as expected, most customers are getting packages on time, and it doesn’t put stock in ShipMatrix data. The company did say it experienced higher-than-expected volumes in some locations.