Amazon, beset by a number of logistical challenges, is taking matters into its own hands by chartering its own ships and planes. The initiative is to avoid bottlenecks in delivery networks as the world deals with supply-chain logjams.
The world's largest e-commerce company is leasing private cargo vessels to carry out deliveries and avoid delays, when ships stay idle in ports for several days. The move would help Amazon during peak times such as the holiday season when it processes orders in larger volumes.
The company is also looking for refurbished cargo versions of the Boeing 777-300ER, one of the largest twin-engine passenger jets in operation, along with conversions of Airbus’s popular A330-300 wide-body aircraft, Bloomberg had reported in October.
"Amazon has been ramping up its own delivery services but is still heavily dependent on its delivery partners. It wants to have more control over its own delivery system but until it gets to nearly full ownership, it will have to schmooze its delivery partners into helping it fulfil its lofty goals," according to a report from financial analysts Investopedia.
"As Amazon moves forward, it will be interesting to watch how the delivery strategies integral to its success evolve."
Seattle-based Amazon's moves are part of its efforts to address its logistics dilemma that has stretched for years.
Its worst experience was probably in December 2013, when a flood of last-minute orders resulted in several customers unable to receive their Christmas deliveries on time, prompting Amazon and delivery partner United Parcel Services to offer refunds.
"Santa can deliver millions of packages in time for Christmas, but apparently, UPS can't," Wired had reported at the time.
Earlier that month, Amazon founder and then-chief executive Jeff Bezos introduced the Prime Air programme, which would deliver items within half an hour. It would take "four to five years" to realise this, Mr Bezos had said at the time. To this day, however, their drones have struggled to take off, thanks to a number of setbacks, including lay-offs, unexpected workload surges and unrealistic expectations.
Amazon's spending to control its shipping process is costly. Then company shelled out more than $61 billion on shipping in 2020, up more than 60 per cent from 2019's $38bn, but that resulted in Amazon shipping 72 per cent of its own deliveries, up from about 47 per cent a year ago, data from SJ Consulting Group showed.
But Amazon seems willing to pay the price, long-term gains considered: shipping costs have surged to $20,000, from below $2,000 before the pandemic struck and an evolving coronavirus casts more uncertainty. Having its own cargo network can also reduce longer waiting times.
It is also producing its own 53-foot cargo containers in China, having made as much as 10,000 of them over the past couple of years, ocean freight analyst Steve Ferreira told CNBC last month.
"While we are always investing in our supply chain and transport network, we have done even more this year to ensure we don’t let recent supply-chain constraints impact the Amazon experience for our customers," Amazon said in a blog post in October.
We have learned to expect the unexpected and that there may be bumps along the way
Amazon
"We’ve invested in people, aircraft, ships and buildings to ensure we have more options in the ways to get things from [point] A to [point] B. We’ve also built a network of strong partnerships across the supply chain to give us the flexibility we need to get the right things to the right places when customers need them."
Dave Clark, Amazon's chief executive of worldwide consumer business, told CNBC last week that the company would "probably" be America's largest package delivery carrier, overtaking rivals UPS and FedEx, by the end of this year or in early next year.
Amazon also recently hired an additional 150,000 staff for its seasonal warehousing and delivery roles – up from 100,000 last year – with signing bonuses of up to $3,000, just to further streamline its logistics operations.
"We have learnt to expect the unexpected and that there may be bumps along the way," the company said.
23-man shortlist for next six Hall of Fame inductees
Tony Adams, David Beckham, Dennis Bergkamp, Sol Campbell, Eric Cantona, Andrew Cole, Ashley Cole, Didier Drogba, Les Ferdinand, Rio Ferdinand, Robbie Fowler, Steven Gerrard, Roy Keane, Frank Lampard, Matt Le Tissier, Michael Owen, Peter Schmeichel, Paul Scholes, John Terry, Robin van Persie, Nemanja Vidic, Patrick Viera, Ian Wright.
'Downton Abbey: A New Era'
Director: Simon Curtis
Cast: Hugh Bonneville, Elizabeth McGovern, Maggie Smith, Michelle Dockery, Laura Carmichael, Jim Carter and Phyllis Logan
Rating: 4/5
Western Clubs Champions League:
- Friday, Sep 8 - Abu Dhabi Harlequins v Bahrain
- Friday, Sep 15 – Kandy v Abu Dhabi Harlequins
- Friday, Sep 22 – Kandy v Bahrain
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Opening day UAE Premiership fixtures, Friday, September 22:
- Dubai Sports City Eagles v Dubai Exiles
- Dubai Hurricanes v Abu Dhabi Saracens
- Jebel Ali Dragons v Abu Dhabi Harlequins
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Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
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Teachers' pay - what you need to know
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
What She Ate: Six Remarkable Women & the Food That Tells Their Stories
Laura Shapiro
Fourth Estate
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
