Amazon Air Cargo Extends Equal Priority to Third-Party Shipments

Amazon has taken a significant step in the logistics world by announcing that its air cargo operations will now provide equal priority to third-party shipments and its own parcels.

This shift underscores Amazon’s broader ambition to expand its influence as a key player in the global logistics market while ensuring its air network is competitive with industry leaders like FedEx and UPS.

In a recent statement, Amazon revealed its decision to give external shippers the same level of service and access as its internal parcel network.

At the International Air Cargo Association’s trade show, Tom Bradley, general manager of Amazon Air Cargo, said, “We have both a hub-and-spoke and point-to-point [operation]. But we also have a ground transportation network, both road and rail, that is the densest in the United States. That gives us a ton of options.”

This move is expected to open new avenues for businesses that rely on air cargo for faster shipping, especially during peak seasons when delivery networks are often stretched to their limits.

Since launching its air cargo division in 2016, Amazon Air has built a robust network of planes, hubs, and ground infrastructure.

The company’s fleet includes almost 100 aircraft operated by partner airlines. Amazon also runs multiple air sortation hubs and over 250 daily flights, linking 54 airports across the U.S.

By creating equal opportunities for third-party customers, Amazon is communicating that its logistics services extend beyond its own needs to benefit the broader market.

This strategy change positions Amazon to compete directly with traditional logistics companies. Equal priority for third-party shipments could attract businesses looking for alternatives to major carriers.

The move also helps Amazon optimize spare capacity in its air network during non-peak periods, a critical aspect highlighted by Air Cargo News.

Moreover, the decision aligns with Amazon’s ongoing efforts to diversify its revenue streams. By using its logistics assets for third-party services, the company could reap additional income.

This policy could benefit shippers by enabling more competitive pricing and improved service reliability, especially as Amazon continues to refine its logistics infrastructure.

For competitors, however, Amazon’s entry into third-party logistics may intensify the already stiff competition in the sector.

The logistics industry could also see a ripple effect, with other players adopting similar policies to maintain their market share. This evolution may benefit end customers, as it will likely improve service standards across the board.

As the peak holiday season approaches, Amazon’s new policy will be put to the test. Moreover, it will become clear how effectively the company can balance its dual roles as an e-commerce giant and a logistics provider.

It remains to be seen whether this strategy will reshape the air cargo market. For now, it’s evident that Amazon Air Cargo has evolved beyond mere package delivery and is now focused on transforming the logistics sector.

Other news stories