Amazon Building Air Cargo Hub For Air Fleet
Amazon is constructing one of the biggest internal logistics and shipping organizations in the world. The company just unveiled that it is investing $1.5 billion in a new air cargo hub. This will establish a spot that crosses the Kentucky and Cincinnati border, and according to the Wall Street Journal, it should open up around 2,000 jobs.
The new hub is being created in order to help provide a base for its progressively large fleet of 40 or more cargo planes, a group of vehicles it previously revealed it was leasing under the name of Amazon Prime Air, and come with custom Amazon exterior paint jobs. The planes are designed to help Amazon handle its increasing transportation needs, which are growing as its share of global retail business increases, and straining the capabilities and capacities of its shipping partners, which include UPS and FedEx.
The company has long maintained that it is not looking to compete with other logistics providers, but it recently became an ocean cargo shipping company, with the ability to act as a “freight forwarder,” services that UPS and FedEx also offer. Amazon still hopes to eventually offer services both to itself and to outside companies and retailers, which would put it in direct competition with its current partners, according to the WSJ’s sources.
If and when it ever happens, however, there’s likely plenty of business to go around for everyone. Amazon typically has some trouble keeping up with demand during busy periods like the holidays, even with all the shipping partners it currently enjoys, and so owning its own piece of the pie to try to build up its maximum capacity is a worthwhile goal even without considering building a functional standalone shipping business in the future, in addition to this.