CORP/BIZ Amazon Emerging as Top ‘Ocean Vendor’ as it Skirts Supply Chain Using Private Vessels

Millwright

Knuckle Dragger
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The online behemoth Amazon is trying to bypass the supply chain crisis by hiring private shipping vessels to transport products to customers from around the world, a move that reflects the retailer’s increasing global influence.
Ocean freight analyst Steve Ferreira said in a CNBC report:
They are doing over 10,000 containers per month of the small- and medium-sized Chinese exporters. Amazon’s volume as an ocean vendor — that’s right, you heard me correct, they’re considered an ocean vendor — would rank them in the top five transportation companies in the Trans Pacific.
This isn’t the first time the retailer has hired private ships to transport goods, according to CNBC. But Amazon has expanded its plan, which has cut waiting times in ports from more than a month to just days.
“Los Angeles, there’s 79 vessels sitting out there up to 45 days waiting to come into the harbor,” Ferreira said. “Amazon’s latest venture that I’ve been tracking in the last two days, it waited two days in the harbor.” Ferreira said:
Who else would think of putting something going into an obscure port in Washington, and then trucking it down to L.A.? Most people are thinking, well, just bring the ship into L.A. But then you’re experiencing those two-week and three-weeks delay. So Amazon’s really taken advantage of some of the niche strategies I believe that the market needs to employ.
Amazon has produced probably 5,000 to 10,000 of these containers over the last two years I’ve been tracking it. Ferreira said. When they bring these containers onto U.S. soil, once they unload them, guess what? They get to be used in the domestic system and the rail system. They don’t have to return them to Asia like everyone else does.
Even so, Amazon is still feeling the pinch like other retailers because of the supply chain crisis, including a 14 percent rise in out-of-stock items and an average price increase of 25 percent since January 2021, according to the e-commerce management platform CommerceIQ.
CNBC reported on Amazon’s move:
Amazon has been on a spending spree to control as much of the shipping process as possible. It spent more than $61 billion on shipping in 2020, up from just under $38 billion in 2019. Now, Amazon is shipping 72% of its own packages, up from less than 47% in 2019 according to SJ Consulting Group.
It’s even taking control at the first step of the shipping journey by making its own 53-foot cargo containers in China. Containers are in short supply, with long wait times and prices surging from less than $2,000 before the pandemic to $20,000 today. A cargo vessel called the Star Lygra called at the Port of Houston on October 5, 2021, filled with Amazon containers.
Then in 2017, Amazon started quietly operating as a global freight forwarder through a Chinese subsidiary, helping move goods across the ocean for its Chinese sellers who pay to be part of the Fulfilled by Amazon program. Internally, Amazon dubbed this project “Dragon Boat.”
Amazon is also using long-haul aircraft to transport its “highest-margin goods,” which can get smaller amounts of cargo from China to the U.S. much faster.
A handful of other major retailers are also chartering vessels, including Walmart, Costco, Home Depot, Ikea, and Target, according to CNBC.

 

Lynx

Senior Member
"... a 14 percent rise in out-of-stock items and an average price increase of 25 percent since January 2021" :eek:
 

Troke

On TB every waking moment
As usual, I have no idea what is going on.
Amazon was able to truck their stuff into Cal? That's interesting because the big problem in Cali is that they can't truck anything out due to state trucking rules, which cuts way down on the number of available trucks. (No truck older than three years etc)
 

db cooper

Resident Secret Squirrel
Too little too late>>>>But if others would join it could work!
I disagree, as it's never too late. Capitalist ingenuity comes to the rescue. Maybe not a complete, full rescue, but it is a solution in part. Brandon's handlers will either have to normalize shipping/supply issues or find a way to beat Amazon and others that will likely follow suit.

Or, find a way to harass private shippers with federal law enforcement. A respectable commie would take this route. Just confiscate private ships as hauling imaginary contraband, or covid carrying crew members, or imaginary drugs/weapons. Does not matter what the facts are, just that the narrative sells to the sheep and useful idiots lined up reading WaPo or the NYT while waiting for their third boosters.
 

ioujc

MARANTHA!! Even so, come LORD JESUS!!!
I disagree, as it's never too late. Capitalist ingenuity comes to the rescue. Maybe not a complete, full rescue, but it is a solution in part. Brandon's handlers will either have to normalize shipping/supply issues or find a way to beat Amazon and others that will likely follow suit.

Or, find a way to harass private shippers with federal law enforcement. A respectable commie would take this route. Just confiscate private ships as hauling imaginary contraband, or covid carrying crew members, or imaginary drugs/weapons. Does not matter what the facts are, just that the narrative sells to the sheep and useful idiots lined up reading WaPo or the NYT while waiting for their third boosters.
I fervently PRAY you are right!!
 

greysage

On The Level
Is it capitalist ingenuity? A free market solution to the port hold-ups? Amazon to the rescue of America?

Or could it be Amazon is being allowed to mobilize and circumvent the hold-ups, and the cargo aboard those ships is going to communists, commissars, and traitors?
 

db cooper

Resident Secret Squirrel
and the cargo aboard those ships is going to communists, commissars, and traitors?
I doubt it if the cargo is going to the homegrown commies here, it's most likely general merchandise Amazon vendors stock that keeps Amazon in business. But you do have a point of sorts, being if the cargo comes from commie China, then the profits from the cargo will go to the people's commie army, which is our sworn enemy.

Since I'm off the main thread topic, I might as well add that I never felt comfortable with greedy American CEO's transferring manufacturing to the CCP. Our dollars helped modernize both China and their army. That fee trade crap started in the Clinton administration was the beginning of our end. I kinda think it was planned, money being the root of all evils the elites could give a rats ass where the country was headed as long as their pockets were lined with cash. Trump's coming along to stop this game really pissed them all off, and he just had to go. Hence, the stolen election.
 
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