Amazon Air Cargo Services: How Amazon Uses It?

“Innovation is saying no to a thousand things”

Steve Jobs

The term ‘freight’ is used mainly when you transport goods by a train or truck & ‘Cargo’ is used when you transport goods by a ship or plane. Cargo wraps all types of freight, as well as that carried by van, rail, or truck. Now, companies are transporting short-lived and manufactured goods in an appropriate & effective manner than ever before via air cargo solutions. New technologies that offer information during air shipments are modifying the way companies do business. Furthermore, Allowing them to be ahead of the competition in their industries. As Amazon air cargo services continue to develop. Businesses are seeking new ways to boost efficiency & cut costs to power their Supply Chain Transformation.

How is Amazon using Air Cargo Services?

Amazon.com inc.’s air cargo division has opened its 1^st regional air hub in Europe & hired 2 Boeing 737-800 aircraft to service it, it’s new operation enlarges its capacity to continue serving customers in Germany & all over Europe.

Seattle-based e-commerce company provided the facility at Leipzig/Halle Airport in Schkeuditz, Germany. With freight volumes of more than 1.3 million tons per year, Leipzig/Halle is Germany’s 2^nd largest cargo airport and the 5^th busiest air cargo operation in all of Europe. 

Amazon Air cargo shared its plans in June, to hire 12 Boeing 767-300 converted cargo aircraft from ATSG as part of an initiative to satisfy changing customer requirements. The move comes as Amazon has been quickly building up its internal air cargo capabilities, naming California’s San Bernardino International Airport as its western air freight hub in May, by adding 12 new cargo aircraft to amplify its total network of over 80 planes in June.

According to Amazon, the site creates an additional connection within its fulfillment network in Europe. Leading to substantial selection & more supple delivery options at a lower price to Prime members. It also allows the company to better serve customers during the continuing Covid-19 pandemic. When people depend on having the items they need to be delivered directly to their doorsteps, the company said.

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Future of Air Cargo

Digital Air Cargo (DAC) is the idea around which air cargo can be transformed both culturally & technologically. DAC frames the whole ecosystem that can line u carriers, forwarders/GSAs & shippers to enable a real-time matching of capacity with demand at optimized prices.

The final result would be Amazon Air cargo that takes 2-3 days from inquiry to delivery. With decreased costs, happy customers & enhanced load factors & revenue. Mentioned below are the key changes to the traditional air cargo business model:

• Dynamic pricing replacing seasonal prices & ad hoc negotiations – enabled.
• United pricing globally rather than various prices offered to various countries or different channels.
• Standard BSAs (Bilateral Security Agreements) rather than informal agreements & bookings.

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The technological solutions required to implement this vision are already available and comprises:

• Capacity management, digitized & updated in real-time.
• Booking APIs permit consumers 24-hour electric access to carrier capacity.

• Revenue management through real-time dynamic pricing response to capacity & market conditions at least daily.
• Rapid response rate must be able to respond almost instantly, to offer consumers the type of online service they expect across industries.

Digital Air Cargo constitutes a strong opportunity for airlines to build air cargo quicker, less costly, and more reliable.

Cargo Theft is on the Hike

All over the year, cargo theft resumed globally. The routes that goods & people used to take have been disrupted due to pandemics. As goods are moving over new routes, supply chains that are not digitized are more frangible due to a lack of visibility. This becomes a significant issue when goods are in unknown areas. And forged individuals can make use of the chaos to engage in theft.

Admiringly, supply chains that include technologies like blockchain are less vulnerable to cargo crime as the technology generates a verified & secure digital ledger. That distinctly shows where goods are in the supply chain management & who last handled them. 

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Cargo Theft Takes Several Forms

• Warehouse facilities were repeatedly targeted for cargo theft in Europe. Europe is victim to many “slash-and-grab” thefts, making use of the generality of soft-sided trailers that are easy to access in that manner.
• Germany has perceived several thefts at rest stops.
• One technique that’s progressively common in the U.S. and Canada is the use by thieves of fictitious papers or identities, permitting them to act as legitimate trucking companies when picking uploads. 

To prevent such occurrences, companies must deploy a combination of driver training & technology for monitoring cargo status.

Final Word

The rise of air cargo has greatly impacted the global economy. Its safe and quick transport helped minimize delays and provide better access to markets globally. So, Air cargo is one of the most critical components of a supply chain. Certainly, It carries various kinds of goods and services globally. Cargo and freight agents play an important role in the supply chain by coordinating and facilitating the movement of goods and raw materials. 

FAQs

 Key Takeaways

• Amazon’s use of air cargo services enables faster delivery times, reducing the shipping timeframe for customers.
• The incorporation of air cargo services allows Amazon to handle high-demand periods like Prime Day and holiday seasons effectively.
• By operating its fleet of cargo planes, Amazon has gained more control over its supply chain, reducing dependence on third-party carriers.

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