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FedEx Chief Dismisses Amazon's Third-Party Logistics Expansion as Limited Threat

FedEx CEO Raj Subramaniam downplayed competitive risks from Amazon's newly launched supply chain services platform, citing fundamental differences in operational scope. In comments to CNBC, Subramaniam argued that Amazon's offering lacks the global reach required to match FedEx's end-to-end network capabilities. A true logistics network requires the ability to move shipments between any two points globally within days, Subramaniam said, a capability he argued Amazon cannot replicate. Amazon Supply Chain Services launched in May with major corporate clients including Procter & Gamble, 3M, Lands' End, and American Eagle Outfitters. The platform provides freight, distribution, fulfillment, and parcel services supported by 100 aircraft, 80,000 trailers, and 24,000 intermodal containers. FedEx acknowledged Amazon operates a non-asset third-party logistics model, though FedEx noted its own 3PL operations remain a smaller revenue segment backed by long-term customer contracts.