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Amazon is taking on ocean shipping in a big way

Mathew Healy, PortandTerminal.com, January 14, 2019

In 2016, a number of news sources including Bloomberg and TechCrunch, reported on a secret plan inside Amazon called “Dragon Boat”, intended to aggressively expand Amazon’s global fulfillment capabilities.

The plan envisions a global delivery network that would control the flow of goods from factories in China and India to customer doorsteps in Atlanta, New York, London and so on. As part of Dragon Boat, Amazon plans to take on freight forwarding and brokerage services directly, eliminating a set of middlemen.

Many analysts both then and now believe that Amazon’s ultimate strategy is to eventually control as much of its transportation network, from trucks to airplanes and ships as well.

One tip-off that Dragon Boat was moving forward back in 2016 was the fact that Amazon’s Chinese affiliate, Amazon China had gotten its license to act as a wholesaler for ocean container shipping from the U.S. Federal Maritime Commission.

Fast forward to 2019

Amazon has sent 4.7 million cartons of consumers goods from China to the United States over the past year, records show.

As of the beginning of 2018, Amazon’s freight shipping arm has shipped over 5,300 shipping containers from China to the United States. 

“Eventually Amazon will make third party sellers of Chinese goods extinct”

Amazon’s Chinese affiliate, Amazon China registered with the U.S. Federal Maritime Commission to become a licensed ocean freight forwarder.

Amazon’s Chinese affiliate, Amazon China registered with the U.S. Federal Maritime Commission to become a licensed ocean freight forwarder. Having the license meant that Amazon China could provide ocean freight delivery to other companies.

In the past year Amazon Logistics and its Chinese subsidiary have shipped 5,300 shipping containers, from ports in China to Long Beach and Seattle, according to research from Ocean Audit. 

 significant that it’s being increased and that the company is able to control the entire supply chain for some of its retail customers.

 the Amazon ocean freight program had only been available to Chinese sellers and manufacturers, but was opened up to U.S. merchants in the fourth quarter of 2018.

The license allows Amazon China to provide ocean freight delivery to other companies.

Among the most important ramifications from Amazon’s vision: small Chinese manufacturer will be able sell to American consumers with no one else than Amazon between them.

“This makes them the only e-commerce company that is able to do the whole transaction from end-to-end. Amazon now has a closed ecosystem,”

Steve Ferreira, CEO of Ocean Audit,

If you

Many analysts believe that the company’s overall strategy is to eventually control as much of its transportation network, from trucks to airplanes and ships as well.

https://www.joc.com/international-logistics/logistics-providers/amazon%E2%80%99s-full-impact-container-shipping-emerging_20190222.html

https://www.joc.com/international-logistics/logistics-providers/can-amazon%E2%80%99s-nvo-lure-large-bco-volumes_20190225.html

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