Amazon To Deliver Goods By Sea From China To The US
Since October 2016, retail giant Amazon has shipped at least 150 containers of goods from Chinese merchants to US warehouses. To bring down its shipment and delivery costs, Amazon Logistics has been employing several traditional and hi-tech routes to shipment delivery. After drones and aircrafts, the company is now using ships to transport products from China to the US by sea.
Increasingly, Amazon is taking control of all the aspects of its shipping processes. According to the Wall Street Journal, the company is now focusing its attention on the ocean freight. Though it does not operate ships yet, Amazon Logistics is acting as a global freight forwarder. It means that it books cargo space on ocean liners and ships inventory between ports and warehouses.
In 2016, the e-commerce giant Amazon had leased 20 Boeing 767 wide-body freighter jets and built its own dedicated air-cargo network. The move was made to avoid any hiccups in third-party logistics and speed up Amazon Prime delivery that promises customers delivery of their orders in one or two days. Amazon Logistics is offering the entire range of delivery services, including sorting, labeling, and tracking shipments.
The Daily Mail reported that entering the logistics solutions sphere can provide a great impetus to the online retailer giant. It will not only add a new revenue stream to the Amazon business model but will also help it to get deeper into the supply chain.
At present, Amazon relies heavily on firms like FedEx and UPS to ship goods. In 2015, the value of the global logistics outsourcing market was estimated to be more than $706 billion, which grew by about five percent last year. Amazon registered with the federal agency overseeing ocean transportation last year to be able to act as the middle man for shipping products in and out of the US. , which is necessary for those looking to act as the middle man for suppliers shipping products in and out of the US. This will help the company to haul and deliver cargo and packages for itself as well as others.