WPvsMW wrote:Doesn't AMZ have options, e.g., 5X and USPS. Also, the AMZ/FX international contract remains in force.
If you mean re FedEx, they're fine. Candidly, while that's being portrayed as FedEx dumping Amazon, the fact is that they just didn't come to terms on price. FedEx was already the highest-cost option in most cases, and Amazon wasn't willing to pay the price that FedEx wanted, so they parted ways. My understanding, unconfirmed, is that Amazon wanted FedEx to come down in price to get closer to, say UPS, and FedEx wouldn't. If Amazon felt it still needed the FedEx option, it would have been more flexible as to price. Remember that Amazon, like most big shippers, has software which computes the lowest-cost shipment, and determines travel time reliability and other metrics to determine the optimal route for each package it ships. (Like ShipStation, only probably more-sophisticated in terms of metrics used.) FedEx wasn't often the top choice, but it was a useful alternative. Without it, packages will just go to other carriers, who will step up. Options include UPS (and folks like LaserShip and OnTrack) for end-to-end delivery, as well as Amazon organic line-haul with final-mile through the USPS, Amazon local delivery, LaserShip/Ontrack, and others. The air and ground organic line-haul networks are getting pretty-impressive (ground is a little more-developed and should be able to scale-up easily), and the final-mile end is likely adequate for Amazon's needs. There is still more capacity out there than Amazon can use, and it's growing.