Retail giant sets up own shipping freight route between US and China for easier delivery
Amazon has become a retail naval power after the company added its own ships to its delivery network fleet.
The company’s China subsidiary has registered itself to act as an ‘ocean freight forwarder’, meaning it can organise the shipment of goods from a supplier or factory in one region to an overseas company or customer.
The news means that Amazon will effectively be able to to cut out the middleman when shipping large volumes of items between overseas markets, saving the company money but also making delivery and shipping much more efficient.
The move was spotted by San Francisco-based logistics startup Flexport, which also noted that Amazon China now has the appropriate paperwork to provide ocean freight services for other companies.
“This is Amazon’s first step toward entering the $350 billion ocean freight market,” the company wrote in a blog post.
Amazon will be able to offer a competitive advantage over its competitors thanks to its software expertise, meaning it could automate some steps of the shipment process, meaning it could cut labor costs along the way, Flexport CEO Ryan Petersen suggested.
The launch is the latest step by Amazon to widen its delivery functionalities across air, land and sea.
The company has been making waves recently with its public support for drone delivery technology, which it says is currently undergoing testing ahead of a public launch within the next few years.
Amazon has also been ramping up its services and delivery options in the UK in recent months, having launched a food delivery service, Amazon Pantry, back in November.
The company is also reportedly planning to launch a new service that will employ normal people to courier goods. The “On My Way” program would offer ordinary people payment to drop off packages on their way home from work or school, with users able to sign up via a dedicated mobile app.
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