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Amazon Threat Has Maersk Racing to Stop Clients Becoming Rivals

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Amazon Threat Has Maersk Racing to Stop Clients Becoming Rivals

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Old 13th Feb 2018, 00:04
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Amazon Threat Has Maersk Racing to Stop Clients Becoming Rivals

bloomberg/news/articles/2018-02-12/amazon-threat-has-maersk-racing-to-stop-clients-becoming-rivals

The world’s biggest container shipping line is trying to stop customers like Amazon.com Inc. and Alibaba Group Holding Ltd. from becoming competitors in just a few years’ time.

“Amazon is a threat if we don’t do a good job for them,” Soren Skou, the Chief Executive Officer of A.P. Moller Maersk A/S, said in a phone interview. “If we don’t do our job well, then there’s no doubt that big, strong companies like Amazon will look into whether they can do better themselves.”

Shares of FedEx Corp. and UPS Inc. dropped last week on a report that Amazon plans to handle more deliveries to its customers’ doorsteps. The question the maritime industry is now asking itself is to what extent the online retailer will also try to take greater control of transportation of shipments bound for Amazon warehouses. For now, those tend to be handled by Maersk and companies like it.

I bet things aren't getting so peachy down in Singapore! A new front opens... and Amazon is already flying drones... what's next?
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Old 13th Feb 2018, 07:24
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$40 to ship a small parcel from the USA to HK . Iím sure Amazon could do it cheaper and probably better
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Old 13th Feb 2018, 23:51
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https://www.seattletimes.com/busines...fedex-and-ups/

(UPS & FEDEX, and presumably CX Cargo, should be worried that Amazon is looking to insource logistics)

AFAICT, conditions for crew are about 30-40% lower than FDX/UPS in the US
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Old 14th Feb 2018, 09:14
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Originally Posted by Freehills View Post
https://www.seattletimes.com/busines...fedex-and-ups/

(UPS & FEDEX, and presumably CX Cargo, should be worried that Amazon is looking to insource logistics)

AFAICT, conditions for crew are about 30-40% lower than FDX/UPS in the US

Until they decide to build their own airline and expand, finding the same crew shortage that the established majors are concerned about. Then suddenly Jeff Bezos decides that salaries and benefits for a share of a shrinking labour pool is money well spent. Funny how the market works like that. (and from all accounts, it is a highly likely that he will be launching his own carrier sooner rather than later).
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Old 14th Feb 2018, 13:16
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Amazon already has their own cargo operations. Not sure on exact figures for wages but they're low enough for pilots to picket their annual meeting. www(dot)qz(dot)com/989094/amazon-amzn-is-starting-to-experience-the-headache-of-running-an-airline/
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Old 14th Feb 2018, 15:17
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At the moment, Amazon is using a contract operation, with about 10 aircraft. Rumour has it that they are about to launch their own airline, with an order of up to 100+ cargo aircraft. If that happens, it will blow the cargo industry wide open.
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