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Parcel Volume in U.S. Hits Projection a Year Ahead

| Mike O'Brien

FedEx saw the biggest U.S. parcel volume falloff in 2022, Pitney Bowes reported, and while overall volume last year was down by 2.2%, the pandemic bump in ecommerce helped it outpace the 2019 projection, hitting the target a year early. The CAGR for parcel volume growth from 2023-2028 is projected to be halved, from 10.8% to 5%.

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Parcel Volume in 13 Markets Up 21% in 2021, Revenue Grows Slower

| Mike O'Brien

Global parcel volume increased 21% in 2021 to 159 billion pieces, according to an annual Pitney Bowes shipping index that tracks activity in 13 markets, but revenue increased at a slightly lower rate of 17% as declines in per-piece yield in China acted as a check on that growth.

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Amazon Logistics Increased Capacity 50% in the Past Year

| Mike O'Brien

Amazon has increased its capital expenditures by 80% in the past year, including continuing expansion of Amazon Logistics such as new cargo planes, trailers and linehaul trucks and adding to its massive Delivery Service Partner (DSP) program. All told, Amazon has increased its logistics capacity by 50% in the past year alone.

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Amazon Logistics: Ready for Prime Time?

| Mike O'Brien

Last week Amazon spent $131 billion for a 19.5% share in ATSG, which operates aircraft it leases. And many believe Amazon Logistics is looking to restart delivering non-Amazon volume from its shippers. So what is up with all this activity and investment? We talk with Kiri Masters of Bobsled Marketing about the pieces that are in place.

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Amazon Parcel Shipping CAGR Outpaces Growth in 13 Major Markets

| Mike O'Brien

Three out of every five parcels shipped in 13 major world markets is originating from China, and Amazon shipped more than 1.9 billion parcels in the U.S. alone in 2019, a 155% increase contributing to a five-year CAGR of 30%, according to Pitney Bowes’ annual parcel shipping index.

Amazon Air Could Reach Parity with UPS By 2027 or 2028, Study Finds

| Mike O'Brien

Amazon Air is projected to have 200 cargo jets in its fleet by 2027 or 2028, bringing it close to parity with UPS if the latter doesn’t expand significantly, according to a study from DePaul University. The study said Amazon Air has grown to 42 planes since its launch in 2016, with plans to expand to 70 by 2021, putting it on par with DHL.

Amazon to Halt Shipping Service for 3P Sellers Due to Coronavirus Demand

| Mike O'Brien

Amazon plans to halt its Amazon Shipping service that competes directly with FedEx and UPS, the Wall Street Journal is reporting, diverting workers to over-maxed fulfillment operations for its own business. Amazon Shipping is only active in a few cities. The company is working with shippers to limit the amount of disruption.

The Most Amazing Anti-Amazon Strategy … That Will Never Happen

| Richard Metzler

It is the synthesis of things Amazon does so well that makes it seemingly invulnerable. To me, trying to beat Amazon on just logistics without a symbiotic combination of brand, merchandising, marketing, technology and a financial war chest is just pure, unadulterated sophistry. Is there such a thing as an effective anti-Amazon strategy?

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Amazon Tells 3P Sellers: No FedEx Ground; Complains of Service Issues

| Mike O'Brien

Amazon is telling 3P sellers they can’t use FedEx Ground for Prime deliveries this holiday season, citing performance issues, according to the Wall Street Journal, saying the policy will remain until there are improvements. UPS and other carriers stand to benefit in the short term if they can find room in their networks.

Amazon to Buy 100,000 Electric Delivery Vans

| Mike O'Brien

Amazon CEO Jeff Bezos said the company plans to purchase 100,000 electric-powered vans from Detroit startup Rivian Automotive, as it seeks to accomplish two goals in one stroke: Decreasing its carbon footprint and increasing its delivery capabilities.