Shippers Shrug Off Amazon's Logistics Plans

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Amazon.com Inc.AMZN
is well-known for the effect it's had on the retail industry. The online retailer disrupted the sector by providing customers with a convenient, low cost way to shop from the comfort of their homes, something many argue kick-started the e-commerce revolution. Brick and mortar retailers have felt the effects of this shift as their inability to match Amazon's prices and struggle to provide a hassle-free online shopping experience has caused them to lose a great deal of marketshare to the online giant. Now, Amazon is making changes to its shipping operations, something that many believe will cause traditional logistics firms to suffer a similar fate.
Planes, Drones And Automobiles
Over the past year Amazon has rocked the industry by announcing plans for several new delivery options. The firm has created its own line of Amazon-branded semi-trucks that will deliver customer purchases without the help of intermediary shippers like
United Parcel ServiceUPS
or
FedEx CorpFDX
. The company has also expressed interest in leasing jets to help with shipments and has been working to develop a delivery drone.
Shippers Say They Aren't Worried
While rumblings of Amazon's ability to disrupt the shipping industry have given investors cause for concern, shippers say they aren't concerned with Amazon's advances.
Swift Transportation Co.
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SWFT
said that despite Amazon's new fleet of delivery vehicles, there are plenty of shipping opportunities to go around. Other firms that handle Amazon shipping like
Covenant Transportation GroupCVTI
say that Amazon will always need their expertise for things like expedited shipping, the demand for which has been growing.
An Uncertain Future
It remains to be seen whether or not Amazon's advances will eventually turn the shipping industry on its head. For now, the majority of shippers seem unconcerned by Amazon's latest initiatives because the company's massive growth calls for a great deal of shipping options, but some say it is only a matter of time before the e-commerce giant finds it's own shipping method that works and begins expanding on it.
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