Amazon Scales Back Cargo Shipments as Demand Falls, Says Contractor

Air Transport Services Group (ATSG), which handles cargo for Amazon and DHL, said the companies are cutting back on flights in response to lower customer demand. 

"Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023," the company said in a news release. 

ATSG said the 767 freighters dedicated to those customers will see reduced schedules and fewer block hours per aircraft in 2023 compared to last year. 

This tracks with recent data from the International Air Transport Association, which found that global demand for cargo was down 13.7 percent year-over-year in November.

“Air cargo performance softened in November, the traditional peak season," said Willie Walsh, director of IATA. "Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed."

Amazon notably just reported one of its worst-ever quarters. The company has announced plans to cut 18,000 jobs and hit the brakes on its ongoing build-out of warehouses.

More In Business

Wells Fargo Workers in New Mexico Vote to Unionize

Wells Fargo employees at a branch in New Mexico have voted to unionize.

Nike Cuts Full-Year Revenue Outlook and Announces Cost-Cutting Plan

Nike cut its full-year revenue outlook for the fiscal year after reporting lower-than-expected revenue in its latest quarter.

Stocks Rise As Market Looks to Extend Winning Streak Year-End

Stocks climbed after the opening bell as the market looks to extend its winning streak as the year draws to a close.

Pres. Biden Says U.S. Steel Deal Needs 'Serious Scrutiny'

President Biden thinks there should be "serious" scrutiny over Japanese company Nippon's planned purchase of US Steel.

Were Your Holiday Deliveries Stolen? What to Know About Porch Piracy and What You Can Do About It

You found the perfect holiday gift online. You ordered it. A notification arrived on your phone, showing the package had arrived. But when you open your doors, the parcel is nowhere to be found.

Airbnb Fined at Least $10M for Misleading Australian Customers

Airbnb has admitted to misleading its customers in Australia by not making clear that prices on its site were listed in U.S. dollars instead of Australian dollars.

American Consumers Are More Confident

Business research group The Conference Board said that its consumer confidence index increased two months in a row.

Stretching Your Dollar: Holiday Bonus

Grant Buckholt, financial adviser with Northwestern Mutual, joined Cheddar News to discuss what exactly a holiday bonus entails and provided tips on how to budget it.

Report: New Car Sales to Increase in 2024

New car sales in the U.S. are forecasted to grow next year.

Stretching Your Dollar: Steps to Take for Financial Freedom

Many of us will look to chart a path to tackling finances as the New Year arrives. Jamila Souffrant, author of "Your Journey to Financial Freedom," joined Cheddar News to discuss steps on what to take if you're looking to take control of your life for financial freedom.

Load More