Jan 7, 2021

Amazon Purchases New Planes To Bolster Airfreight Capacity

Supply Chain
Logistics
Amazon
Air freight
Laura V. Garcia
2 min
Amazon expands its air logistics capabilities through the purchase of eleven new planes, alleviating supply chain pressures elsewhere.
Amazon expands its air logistics capabilities through the purchase of eleven new planes, alleviating supply chain pressures elsewhere...

According to a recent Amazon press release, the purchase of 11 new Boeing 767-300s, four of which are from WestJet, and seven from Delta, will be added to its cargo fleet over the next two years. The move marks the first time the once-upon-a-time bookseller purchases rather than leases aircraft to beef up its quickly expanding air freight capacity.

“Our goal is to continue delivering for customers across the U.S. in the way that they expect from Amazon, and purchasing our own aircraft is a natural next step toward that goal,” Sarah Rhoads, the vice president of Amazon Global Air, said in a statement.

“Having a mix of both leased and owned aircraft in our growing fleet allows us to better manage our operations, which in turn helps us to keep pace in meeting our customer promises.”

The four aircraft purchased from WestJet are currently undergoing passenger to cargo conversion and will join Amazon Air’s network in 2021, with the seven planes from Delta set to enter Amazon’s air cargo network in 2022. By the end of next year, Amazon expects to have more than 85 planes in service, a spokesperson said.

"We’ve also expanded operations for Amazon, where we began flying three additional 737 freighters since September," Atlas Air CEO John Dietrich said. "We're now operating eight, 737s for Amazon, complementing the large fleet of 767s that we have with them."

One Small Step Towards the General Package Delivery Market?

A 2020 report, “Insights to Amazon Air 2020s Transportation Juggernaut ” indicated that Amazon is looking to expand its fleet to 70 aeroplanes by 2021 and could grow to 200 planes in 7-8 years. And that "the growth of Amazon Air is a cornerstone of the retailer’s push to expand its presence in the overnight and two-day home delivery market, a segment that has long been dominated by FedEx, UPS, and the United States Postal Service. 

More interestingly, however, the report suggests that perhaps the “steady flow of investment to expand Amazon Air paves the way for the retailer to both reduce reliance on FedEx, UPS, and USPS and— eventually—possibly enter the general package delivery market.

The deals represent the second time Amazon takes advantage of a depressed, buyer-friendly market. Not a bad play.

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Jun 24, 2021

Kuehne+Nagel cuts carbon footprint by 70% for Honda China

Kuehne+Nagel
CarbonNeutral
supplychain
Logistics
2 min
Road-to-rail logistics solution will reduce carbon emissions at the automaker by 70%, stripping 16,000 tonnes of CO2 from its supply chain

Around 16,000 tonnes of CO2 has been cut from supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel

The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018. 

KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management. 

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive. 

After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected too trip 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total. 

"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”

Kuehne+Nagel’s Net Zero Carbon programme 
 

Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners. 

Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”. 

As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030. 
 

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