E-commerce giant Amazon Air’s business is growing at its slowest pace since the coronavirus pandemic, underscoring weak overall demand for air cargo services and another sign of concern in the global logistics industry following FedEx’s warning.
According to the latest data released by DePaul University on Tuesday (20th)Semi-annual reportIt shows that Amazon Air Cargo has increased from about 187 daily flights in March 2022 to 194.1 in early September, an increase of only 3.8%, far lower than the 18.4% in the same period last year. The slowest pace of growth in the periodic report, which is produced roughly every six months since January.
Joseph Schwieterman, a professor at Tebow University, pointed out that Amazon is currently undergoing a major adjustment. At the height of the new crown epidemic, Amazon was clearly overly optimistic about expanding its supply chain.
Consumers in various countries have gradually returned to normal shopping habits, and Amazon’s online sales have also flattened. The American e-commerce giant is facing the dilemma of a surplus of logistics warehouses and workers.
The report mentioned that Amazon has taken decisive steps to adjust to the “new normal” of weak demand and that the company has suspended or abandoned plans to build dozens of new logistics warehouses.
The report is another sign of concern for the global logistics industry after FedEx issued a profit warning.
Logistics giant FedEx said last week that it would cancel its fiscal 2023 forecast released in June due to a sharp deterioration in overall economic trends, while announcing a number of austerity measures, including the closure of offices and the grounding of freighter planes.
Simply put, it was a bad quarter, with global freight demand clearly deteriorating, according to Robert W. Baird & Co. analyst Garrett Holland.
Amazon (AMZN-US) slipped 1.98 percent to $122.19 a share on Tuesday. FedEx (FDX-US) fell 3.38 percent to $157.40 a share.