Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.uberflip.com/i/949884
commercial carrier journal | march 2018 21 JASON CANNON is Equipment Editor of Commercial Carrier Journal. E-mail jcannon@randallreilly.com or call (205) 248-1175. Five years ago, UPS's Christmas wasn't merry when its infrastructure imploded under holiday shipping pressures. In turn, Amazon handed out scores of gi cards and refunded shipping costs to affected customers. On the surface, it may seem like Amazon is on a quest for retribution, but at least for the time being, I think the company's venture into shipping is more about self-preservation. According to online statis- tics company Statista, Am- azon's shipping revenue in 2016 was $8.98 billion, while its outbound shipping costs were $16.17 billion. In 2015, the online retailer reportedly spent $11.5 billion on shipping expenses, which was more than 45 percent of all the company's operating expenses that year. Amazon's shipping costs are expected to climb as more cus- tomers turn to the platform for general merchandise such as my martial arts gloves and barbeque pellets. e one-off shipments of random items are harder for the company to scale, which means higher shipping costs. In 2016, Amazon's annual fulfillment costs grew 31 percent over the prior year, Statista notes. Successful delivery of Amazon's goods now is almost wholly at the mercy of third-party providers. Walmart doesn't operate that way, and neither does your local pizza parlor. Shipping is a logistics play for Amazon, speeding up fulfillment for third-party sellers, and it's a step toward making same-day delivery the norm in certain markets. In the push for instant gratification, Amazon controlling the final-mile space in its largest markets – such as Los Angeles – makes more sense to me than trying to rival the likes of UPS and FedEx for a share of the highway. WANT MORE EQUIPMENT NEWS? Scan the barcode to sign up for the CCJ Equipment Weekly e-mail newsletter or go to www.goo.gl/Ph9JK. Meritor debuts air spring line, expands kingpin kits M eritor launched its air spring lineup. Krishna Natarajan, Meritor's senior director of steering, suspension and drivetrain, said the air springs are made with corrosion-resis- tant components and are engineered to accommodate higher load-carrying capaci- ties, offer more protection to cargo from shock and vibra- tion and deliver improved road handling. e company also expanded its kingpin kits in its Meritor Genuine and Mach product lines. Natarajan said the new kits round out the overall portfolio that now covers 95 percent of the market for ream and no-ream applications. – Jason Cannon Denso enhancing PowerEdge program D enso an- nounced improvements to its PowerEdge Diesel Aertreatment Program. Joe Mejaly, senior vice president of Den- so Products and Services Ameri- cas Inc., said the moves were made as the company saw rising costs associated with core management and fallout. Denso also is adding a medium-duty diesel particulate filter/diesel oxidation catalyst program with coverage for vehicles in Classes 2-6, including those manufactured by GM, Ford and Chrysler. – Jason Cannon Shipping is a logistics play for Amazon, and it's a step toward making same-day delivery the norm in certain markets. Meritor's air spring portfolio includes triple- and double- convoluted, reversible and cab- mount air springs. Among the changes to Denso's PowerEdge Diesel Aftertreatment Program is expanded coverage for DPFs and full DOC coverage.