Amazon Scales Up Rail and Maritime Shipping to Meet Carbon Reduction Targets in European Supply Chains

Amazon is taking significant steps toward decarbonizing its supply chains across Europe. The company announced that in 2023, it increased the share of rail and maritime transport in its logistics solutions by 50%. Trucks continue to play a critical role in first and last-mile operations, but Amazon remains committed to further developing rail and maritime shipping options.

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In 2020, Amazon reported an impressive 300% increase in rail transport across Europe, and by 2023, this growth had expanded by a further 50%. The company currently operates 100 railway lines across Europe. However, as Amazon is an online retailer known for rapid logistics, it has traditionally relied heavily on trucks and road transportation. This means that while rail's share is increasing, the total share demonstrates significant potential for further expansion, presenting a major opportunity for Amazon and intermodal transport operators.

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Amazon partners with various rail and intermodal logistics companies across Europe, including CargoBeamer, Mercitalia, VIIA, and DFDS. It also maintains agreements with maritime operators Stena Line and Grimaldi.

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According to Amazon, most of its intra-European shipments concern small and medium-sized enterprises (SMEs), which account for 60% of the platform's sales. To satisfy these customers, Amazon uses intermodal units that can transition seamlessly between rail, road, and maritime shipping. A typical Amazon shipment occurs between two of the company's fulfillment centers. Intermediate stops typically take place at rail or port terminals, while the first and last miles are completed by truck. This approach resembles an efficient multimodal supply chain in which rail covers most of the distance and trucks provide only the connection to and from rail terminals.

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The adoption of such solutions by global companies like Amazon represents a positive development for demonstrating the rail industry's fast and flexible delivery capabilities. Moreover, it indicates the potential for such companies to serve as reliable partners for European railways not only for long-distance travel but also for short and medium-distance transport.

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Source: https://www.railfreight.com/railfreight/2023/12/05/amazon-scales-up-intermodal-game-in-europe/