A significant development in supply chain logistics has been announced, with a prominent e-commerce company revising its carrier agreement to operate eight additional Boeing 747 freighters. This move is part of a broader strategy to optimize airfreight operations and enhance cargo capacity. The extended contract, originally implemented in 2019, will now run through 2030, with options for further extensions until 2037, bringing the air freight operations of the carrier to a total of 20 freighters. The first of the new aircraft is expected to begin service in the first quarter of next year, with all eight additional freighters operational by the third quarter of 2025.
The e-commerce giant has been strategically refining its air cargo strategy, focusing on simplifying its U.S. network and maximizing available cargo capacity. Since March 2023, the company has resized its U.S. network, increasing daily flights at key hubs while reducing non-hub flight activities and ceasing operations at six airports. These airports primarily serviced smaller ATR-72 turboprops, which had significantly lower tonnage and volume capacities compared to the larger 737 aircraft. In line with this strategy, the company has phased out all five of its turboprops and has been acquiring larger aircraft to boost capacity. Over the past year, the company added three 767Fs and a single A330, which increased available capacity by nearly 5%, despite operating with one fewer plane. The recent deal to secure 10 converted freighters operated by another airline is expected to further grow available capacity by 17%.
The company has also been revising agreements with aircraft lessors to better align with its updated strategy. Last year, it was reported that several lease agreements for 767 aircraft were set to expire, with some aircraft slated for retirement. However, a new agreement was reached to operate 10 767Fs by the end of the year, with potential to add up to 10 more aircraft beyond 2024. This will bring the total number of freighters operated for the e-commerce giant to 50. These strategic moves highlight the company’s commitment to enhancing its air cargo operations, ensuring efficient and reliable logistics to meet growing demand.
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