AMAZON Air's new third-party service offering will benefit from the airline's directional imbalance, the increased regularity of its services and the recent expansion at some of its main hubs, reports London's Air Cargo News.
In an analysis of the launch of Amazon Air Cargo, Joseph Schwieterman of the Chaddick Institute found that the move has 'considerable upside potential' for Amazon Air.
Firstly, Mr Schwieterman said the move would help address a directional imbalance of cargo at some of its main hubs, where there are more outbound than inbound shipments.
According to his analysis, Amazon's Cincinnati (CVG) hub has a directional imbalance of 17.7 per cent, at Fort Worth the difference is 25.7 per cent and at San Bernardino (SBD) the gap is 32.2 per cent. This is a greater imbalance than the likes of integrators UPS and FedEx at their main hubs in the US.
'Air cargo integrators face less extensive imbalances partially because of their 'anywhere to anywhere' business models, which results in large volumes of traffic originating at hundreds of locations worldwide,' he said.
'The evidence indicates that Amazon Air's more specialised role, focusing primarily on business-to-consumer and business-to-business shipping, results in a disproportionate share of traffic originating at a limited number of fulfillment-centre and warehouse clusters, such as those around CVG and SBD.'
Carrying third-party traffic could help eliminate some of this imbalance, he said. Meanwhile, the company's schedules have become more regular in recent years.
SeaNews Turkey
In an analysis of the launch of Amazon Air Cargo, Joseph Schwieterman of the Chaddick Institute found that the move has 'considerable upside potential' for Amazon Air.
Firstly, Mr Schwieterman said the move would help address a directional imbalance of cargo at some of its main hubs, where there are more outbound than inbound shipments.
According to his analysis, Amazon's Cincinnati (CVG) hub has a directional imbalance of 17.7 per cent, at Fort Worth the difference is 25.7 per cent and at San Bernardino (SBD) the gap is 32.2 per cent. This is a greater imbalance than the likes of integrators UPS and FedEx at their main hubs in the US.
'Air cargo integrators face less extensive imbalances partially because of their 'anywhere to anywhere' business models, which results in large volumes of traffic originating at hundreds of locations worldwide,' he said.
'The evidence indicates that Amazon Air's more specialised role, focusing primarily on business-to-consumer and business-to-business shipping, results in a disproportionate share of traffic originating at a limited number of fulfillment-centre and warehouse clusters, such as those around CVG and SBD.'
Carrying third-party traffic could help eliminate some of this imbalance, he said. Meanwhile, the company's schedules have become more regular in recent years.
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