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amazon pushing hard into ocean shipping, making it easier for chinese goods to get to you

by:QY Precision      2019-08-25
SAN FRANCISCO —
Amazon has been quietly stepping up its shipping service by sending nearly four emails.
Records show that in the past year, there were 7 million boxes of consumer goods from China to the United States.
This marks a major shift in the company\'s overall strategy, eventually controlling most of the transport networks from trucks to aircraft, now to ships.
As of the beginning of 2018, Amazon\'s freight department had shipped more than 5,300 containers from China to the United States.
These containers Mark Amazon\'s foray into the fragmented, intricate shipping market, enabling it to serve Chinese soup makers. to-
Nut Service, eliminated almost all other middlemen on the way to the United StatesS. consumer.
\"It makes them the only electronics.
A commercial company capable of completing the entire transaction from the terminalto-end.
Amazon now has a closed ecosystem, \"said Steve Ferreira, CEO of Ocean Audit, a company that uses data and machine learning to find a sea refund for Fortune 500.
His research first identified this increase based on data from the shipping database, including the distribution of publications companies
And it\'s important. com.
Experts say this is a major advantage for Amazon and its founder and CEO, Jeff Bezos.
\"No one else is even close to that.
Wal-Mart does not have shipping, \"said Michael Zakkour, executive vice president of global digital commerce at Tompkins International, a supply chain consultancy.
Containers under the name of Amazon logistics or its wholly-owned subsidiary Beijing Century Youyou Express Service Co. , Ltd.
, From the Chinese port to the Port of Long Beach, California or the Port of Seattle, Washington, and from there to the Amazon distribution center.
Amazon either offers a simple cross
Pacific part of the trip-to-
Provide the ultimate service to the company that wants it.
Can include selection
At the Gate of China\'s factory, it was shipped across the Pacific Ocean to the United States. S.
Ports and trucks are transported to the Amazon fulfillment center in the United States.
Amazon Logistics and jojojoyo announced rates in public charges, describing the types of services and charges customers can use.
\"This gives Chinese goods a seamless path from the factory floor to the front steps of the US buyer\'s porch,\" said Cathy Robertson, founder of logistics trends and insights in Atlanta.
The project was initially only open to Chinese sellers and manufacturers.
However, Amazon confirmed to USA Today on Friday that the project is open to the United StatesS.
Sellers start selling from 2018.
While 5,300 containers are still a small part of Amazon\'s cargo River, companies on Amazon ship from China to the United States every year, suggesting that many expect significant changes in global e-commerce
As Amazon expands its capabilities in fragmented and often difficult situations, the business environment --to-Navigation market.
Today, goods produced in China are sold on Amazon through a variety of different channels.
Some are small packages sent directly to customers from China through the post office.
Some are shipped to the seller\'s warehouse through containers on board.
The other is to use the shipping contract of the Chinese factory and ship it directly to the Amazon fulfillment center.
The move has been warned by many analysts in the logistics sector since Amazon first won the US market. S.
Robertson said the permit allowed it to lease and resell space on ships transporting goods between China and the United States in 2016.
\"This is their goal and they want to control the entire supply chain,\" she said . \".
Keeping goods in a supply chain reduces the number of handover and damage and provides uninterrupted visibility
A huge advantage for sellers.
It also allows Amazon to make money through this process.
Transportation is just the latest push for companies.
For the past few years, Amazon has been leasing truck trailers and freight planes to build its American cars. S. -
Based on fleet and air capacity.
The fact that Amazon offers on-site servicesto-
Brittain Ladd said that providing door shipping services to Chinese customers is a big deal, because this means that Amazon has gained a certain degree of expertise in another channel and category itcan scale, previously a senior manager of Amazon Global Logistics, now a retail and supply chain consultant.
Amazon may not have made any public statements about it, he said, simply because it doesn\'t want to attract attention because it\'s moving into another area it ultimately plans to dominate.
\"There is no doubt that Amazon wants to have as much control over its logistics as possible,\" Ladd said . \".
MORE: tips on how to buy on Amazon: what to look for step by step for the public, the biggest news is that Amazon is slowly changing the retail structure.
\"Small factories in China can now be sold to American consumers, and there are no other people among them except Amazon.
This means that Amazon is accelerating globalization into the US family. \"data analyst Philip Blumenthalof Freightos, logistics market.
What Amazon is doing Amazon has tested ocean shipping waters for at least three years.
In 2016, Amazon China, its Chinese subsidiary, was licensed by the United States. S.
The Federal Maritime Commission will become a sea freight forwarder for freight between China and the United States.
Despite obtaining a license
A long and tortuous process
Amazon did not take advantage of it immediately.
On 2017, it started shipping 40-
Foot containers from southern China to California ports and from there to California and Indiana Amazon fulfillment centers, in the name of a Chinese freight forwarder.
Amazon is now acting as a freight forwarder in its own name.
Amazon\'s subsidiary is the first shipment to record shippers that didn\'t show up until November.
Ferreira said 2017.
Freight Forwarders, also known as \"non-
A vessel operating a common carrier \"or NVOCC is a company that purchases space on a vessel and organizes shipments to fill the space.
NVOCC itself does not own ships, but rents space from the Steamship Company and sells the space to their customers.
So, like Amazon leasing instead of buying a cargo plane, it is now leasing space on ships as well.
This is a huge market.
Robertson estimates that the global freight market, including air and sea freight, is about $220 billion.
\"They have eliminated transportation costs from the supply chain. It’s brilliant.
They make money on the ocean, they make money on truck transportation in China, USAS.
\"They made money in fulfillment,\" Ferreira said . \".
A logo for ComeAmazon is well known, it first builds a capability for its own use and sells it to others once it works well.
Amazon\'s initial cloud computing capability for itself is the best example.
Amazon launched the AWS platform internally in 2002.
Today, it is estimated to control about 40 percent of the global cloud computing market.
Zakkour said Amazon is currently building an ecosystem in four areas. They are e-
Business, IT and technology, media and entertainment, and logistics and supply chains.
Of course, the company has already emailed
Take good care of business.
For IT and technology, IT is not only a huge leader in cloud computing, but also a significant leader in voice control through Alexa virtual assistant.
Amazon media has played an important role in media and entertainment, creating Awards
Win movies and TV shows in multiple languages.
Now, it\'s building a vertical integration --
Own and operate logistics and supply chains.
\"I think bezosalway plans to build the world\'s most powerful logistics supply chain,\" said Zakkour . \".
Companies made in China can now sell directly to the United States. S.
Consumers go through Amazon.
This means Amazon is accelerating globalization directly to American families.
Experts say this will not stop as goods are only sold on Amazon.
\"They try to lower the noise level so they don\'t scare their competitors.
They said they were not. Amazon sellers.
\"Maybe not now, but they will certainly do so in two years,\" Blumenthal said . \".
The company currently publishes 456 positions on its website, 31 of which are specialized in global logistics.
One is in Shanghai working with Beijing Century Joyo, who will help the company \"disrupt the way products are purchased, sold and distributed globally \".
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