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Amazon is building its own carbon-neutral UPS, Bank of America says
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<blockquote data-quote="35years" data-source="post: 4212278" data-attributes="member: 60822"><p><a href="https://www.freightwaves.com/news/despite-talk-of-budding-rivalry-amazon-and-ups-may-find-theyre-stuck-with-each-other" target="_blank">Despite talk of budding rivalry, Amazon and UPS may find they’re stuck with each other - FreightWaves</a></p><p><em>By some estimates, Amazon accounts for<strong> 5 to 8 percent </strong>of UPS’ $72 billion in annual revenue...</em></p><p><em></em></p><p><em>Analysts like Mehrotra and Kevin Sterling of Seaport Global Securities believe that in the wake of the FedEx move, the time is right for UPS to take a harder pricing line with Amazon. Sterling said UPS has already begun to adopt a firmer stand. However, the gauntlet may not be thrown down until the upcoming peak holiday shipping season. The ordering and shipping cycle will be compressed to just three weeks because Thanksgiving falls on November 28, putting additional pressure on Amazon’s resources, Sterling said. FedEx will not be available to fly Amazon packages, and Amazon’s air network will likely not be fully ramped up to handle the expected parcel avalanche. What’s more, UPS is no longer afraid to walk away from excess peak volume to maintain network fluidity.</em></p><p><em></em></p><p><em>The last time the peak season was this short was in 2014, according to Sterling. Then, Amazon deluged UPS with millions of unexpected last-minute parcels. UPS accepted them, and in the process gummed up its network. Hundreds of thousands of holiday packages were delivered late, leaving UPS with a reputational black eye and putting Amazon in full “blame game” mode. It was around that time, Sterling noted, that Amazon began developing its own air network.</em></p><p><em></em></p></blockquote><p></p>
[QUOTE="35years, post: 4212278, member: 60822"] [URL="https://www.freightwaves.com/news/despite-talk-of-budding-rivalry-amazon-and-ups-may-find-theyre-stuck-with-each-other"]Despite talk of budding rivalry, Amazon and UPS may find they’re stuck with each other - FreightWaves[/URL] [I]By some estimates, Amazon accounts for[B] 5 to 8 percent [/B]of UPS’ $72 billion in annual revenue...[/I] [I] Analysts like Mehrotra and Kevin Sterling of Seaport Global Securities believe that in the wake of the FedEx move, the time is right for UPS to take a harder pricing line with Amazon. Sterling said UPS has already begun to adopt a firmer stand. However, the gauntlet may not be thrown down until the upcoming peak holiday shipping season. The ordering and shipping cycle will be compressed to just three weeks because Thanksgiving falls on November 28, putting additional pressure on Amazon’s resources, Sterling said. FedEx will not be available to fly Amazon packages, and Amazon’s air network will likely not be fully ramped up to handle the expected parcel avalanche. What’s more, UPS is no longer afraid to walk away from excess peak volume to maintain network fluidity. The last time the peak season was this short was in 2014, according to Sterling. Then, Amazon deluged UPS with millions of unexpected last-minute parcels. UPS accepted them, and in the process gummed up its network. Hundreds of thousands of holiday packages were delivered late, leaving UPS with a reputational black eye and putting Amazon in full “blame game” mode. It was around that time, Sterling noted, that Amazon began developing its own air network. [/I] [/QUOTE]
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