AMAZON AIR ENCROACHING ON UPS & FDX AIR SPACE | Global Trade Magazine
  January 7th, 2019 | Written by

AMAZON AIR ENCROACHING ON UPS & FDX AIR SPACE

MORGAN STANLEY RESEARCH FINDINGS SHOW RISK

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  • Morgan Stanley notes that, for now, investors are focusing on Amazon's last-mile effort.
  • “Our work with AlphaWise shapes our analysis of AMZN Air’s impact to date and plots a potential expansion course."
  • “We’ve written extensively on Amazon's build-out of its internal logistics network."

“We think the market is missing the risk Amazon Air poses to UPS/FDX growth,” say researchers at Morgan Stanley. “Our work with AlphaWise shapes our analysis of AMZN Air’s impact to date and plots a potential expansion course. Lowering PTs for UPS and FDX and quantifying AMZN savings.”

Morgan Stanley notes that, for now, investors are focusing on Amazon’s last-mile efforts, but the Manhattan-based multinational bank and financial services concern believes the Amazon Air challenge is just as relevant.

“We’ve written extensively on Amazon’s build-out of its internal logistics network, but given Amazon’s plans to take delivery of 40 planes and build an air hub that could potentially handle 100 planes, we’ve taken a closer look at the impact of Amazon Air (its in-house Express Air network) on UPS/FedEx Air volumes,” state the researchers, who point to their own interactive online map.

Learn more at morganstanley.com.


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