Is Amazon Reducing US Cargo Flights?
Plane flying through clouds
If your business ships and receives goods, then you have probably read about the current situation with Amazon and US cargo flights. This major corporation is reducing the flight numbers in conjunction with the Air Transport Services Group (ATSG). According to experts, Amazon experienced a shift in e-commerce demands, requiring them to make these changes. However, many people wonder what exactly is happening to reduce these cargo flights.
What Is Happening With Amazon Cargo Flights?
Since the 2020 Pandemic, every company world-wide has been trying to regain the control they lost, and Amazon is no exception. ATSG, a company that provides aircraft leasing services, recently reported that they expect a slow growth for 2023. Since Amazon is reducing their request for scheduled fleets this year, ATSG management expects to experience some changes within their own company. They are not expecting Amazon to renew their contracts for certain cargo fleets like Boeing 767-200. It seems the company doesn’t anticipate as much of a need for larger cargo flights this year. The CEO of ATSG also commented that they believe Amazon will sign a contract with Hawaiian Airlines as their new cargo fleet partner. Fleets like A330s are a newer model the company will use to replace older models like the Boeing 767-200.
Is Amazon Reducing US Cargo Flights?
Since Amazon is a top customer with ATSG, this could mean changes for the future of ATSG. It may seem like Amazon is reducing US cargo flights, but in reality, they are making a shift in fleet partnerships. ATSG and other cargo leasing companies rely heavily on e-commerce business and experts still project growth this year. The company’s administration doesn’t expect to take a financial hit by a reduction of Amazon business. They will continue to seek out new customers and form lasting partnerships with several businesses.
The growth of Amazon’s e-commerce business has slowed down over the past few months. This reduction has led to a reevaluation of their cargo flights contracts. Planning how they use their air freight shipping network due to fewer air packages to move will help them use their resources more wisely. The company may have more success right now by focusing on business-to-consumer delivery, rather than two-day or next-day delivery
How Will This Affect the Future Of Other Companies?
If your business uses air freight shipping, especially with Amazon, it’s important to consider how this news will affect your company. As e-commerce demand reduces, Amazon is pulling back on their scheduled cargo flights. This could lead to other cargo leasing companies changing how they operate, including possible competitive rates between these companies.
The good news is there are many shipping methods companies can use to keep production moving for their team. Companies should prepare for changes, but not worry about severe issues. Instead, partnering with an experienced shipping logistics company can take away the overwhelm by helping you navigate business issues.
Trifecta Transport Can Help
Trifecta Transport is your all-in-one solution to help you manage the difficult side of shipping logistics. We understand running a business takes time and handling the details can seem overwhelming. That is why we offer our services to many companies who need help to choose the right shipping method to meet their needs.
If you’re looking for a reliable company that will focus on communication and help you create an effective plan, you can count on our team. We believe in educating our customers, so they can feel confident in their business decisions.
Contact Our Team Today
When you’re not sure how to navigate time-critical shipping issues, contact Trifecta Transport. We are here to walk you through choosing the right shipping method for your business. Our team will show you how to navigate the shipping method and stay within your budget. Contact us today.
