Kuehne+Nagel and Amazon Sign Seven-Year Strategic Partnership

Kuehne+Nagel and Amazon are expanding their existing business relationship through a new seven-year strategic cooperation agreement. The partnership is expected to cover a much broader range of logistics activities and could significantly increase the Swiss logistics company’s business with Amazon.

According to Kuehne+Nagel, its current business with Amazon already generates several hundred million euros in annual revenue. Under the new agreement, the company expects that figure to eventually grow into the billions of euros.

The cooperation is designed to support Amazon’s future logistics requirements while expanding Kuehne+Nagel’s role across the company’s global operations.

Kuehne+Nagel to support AWS infrastructure

One of the most notable elements of the agreement is the expansion into logistics services for Amazon Web Services (AWS) infrastructure.

Kuehne+Nagel will support activities ranging from the construction and commissioning of infrastructure to maintenance, modernization and expansion projects. The logistics provider says its involvement should help improve the scalability, resilience and efficiency of supply chains supporting Amazon’s global cloud infrastructure.

This gives Kuehne+Nagel a role that extends beyond traditional fulfillment and transportation services, placing the company closer to the infrastructure supporting Amazon’s cloud business.

Amazon receives option to acquire Kuehne+Nagel shares

The agreement also contains a financial component that could eventually give Amazon an ownership interest in Kuehne+Nagel.

Amazon has received an option to purchase existing Kuehne+Nagel shares. Depending on the terms and Amazon’s decision, the option could be settled either in cash or in Amazon shares.

However, Amazon does not automatically receive a stake in Kuehne+Nagel under the agreement. The option is linked to the achievement of specified commercial milestones and the delivery of services during a period of up to seven years.

As a result, the size and timing of any potential Amazon investment remain uncertain. Kuehne+Nagel has appointed an external financial services provider to structure the transaction and carry out the associated hedging activities involving Kuehne+Nagel shares.

Existing relationship to expand

Kuehne+Nagel CEO Stefan Paul described the agreement as a long-term cooperation focused on scaling operations, innovation and customer value. The company believes its international network, digital capabilities and supply chain expertise will allow it to support Amazon’s changing requirements.

The two companies already have a substantial commercial relationship, with Amazon among Kuehne+Nagel’s largest customers in fulfillment and shipping.

Kuehne+Nagel currently employs approximately 88,000 people across more than 1,300 locations in almost 100 countries. The company describes itself as the world’s leading provider of sea and air freight logistics.

The new agreement could therefore represent a significant expansion of an already established relationship, combining traditional logistics services with support for Amazon’s rapidly growing cloud infrastructure operations.