WILMINGTON, Ohio, Nov 26 (GCTL18) – Amazon’s moves deeper into logistics may already be extending into air freight and air express delivery operations, according to sources in the US that believe a new air freight operation out of Wilmington Air Park in Ohio may be directly run on behalf of the online retail giant, using infrastructure formerly used by DHL Express.
According to Motherboard, the science and technology channel of the Vice Media group, an air cargo operation under the name ‘Aerosmith’ launched in September at Wilmington, on a trial basis. The operation is being run by the Ohio-based aviation holding company Air Transport Services Group, or ATSG, shipping consumer goods for an unnamed client that many believe to be Amazon, Motherboard reports quoting Lloyd’s Loading List.
The unnamed client has contracted two Boeing 767s from airline ABX and two more from airline Air Transport International, under ‘wet-lease’ (ACMI or aircraft, crew, maintenance and insurance) agreements, Motherboard confirmed with Paul Cunningham, a spokesperson for ATSG.
The project involves a hub-and-spoke air freight operation out of Wilmington (ILN) with four flights a day to and from four other confirmed airports: Allentown, PA (ABE), Ontario, CA (ONT), Tampa (TPA) and Oakland (OAK). Amazon has distribution centres about 30 km from ABE and ONT and within 100 km of TPA and OAK, Motherboard noted.
Cunningham declined to say whether the company behind Aerosmith was Amazon, citing a nondisclosure agreement, but said that the cargo being shipped was general consumer goods. The client company had not yet indicated if the project was short or long term, although Cunningham said he expected that it would continue through the peak shipping season in the fourth quarter.
FedEx, UPS, and DHL all confirmed to Motherboard that they were not involved in ‘Aerosmith’. Amazon did not deny it was behind the project, but told Motherboard: “We’ve long utilized air capacity through a variety of great partners to transport packages and we expect that to continue.”
Although Amazon may just be just building up a system to supplement its current system during high-volume periods like the holiday season,
Marc Wulfraat, president of a logistics consulting firm that follows Amazon closely, MWPVL International, said talk of Amazon’s plans to expand into transportation and freight has been intensifying recently. He told Motherboard that he was doubtful it had any concrete air cargo programmes, but suggested the company may be testing the idea as a pilot project, noting: “They are always coming up with new ideas to lower shipping cost. Shipping cost is their big albatross; they’re always looking for ways to bring that under control.”