Amazon Pursues Ocean Freight Shipping

MaddiRuhl on Friday January 15, 2016 at 11:19:12 AM

Amazon Pursues Ocean Freight Shipping

To boost efficiency and cut costs in shipping, Amazon China has reportedly registered to begin freight shipping.

Amazon has been working on some clever delivery and shipping methods, from drones and now shipping containers. According to a report from Flexiport, Amazon China has registered to join the world of freight shipping. Entering the ocean freight industry could considerably cut costs for Amazon, and open up new opportunities for more revenue from other companies. When it comes to shipping its product from Amazon China to the US, for example, calculations by Business Insider revealed that ocean freight shipment of a flat screen TV costs only $10. There won't be a huge shipping difference from Amazon's current shipping methods (they already employ ocean freight), but owning the service would improve efficiency and overall control.

While the company already moves a lot of inventory by ocean freight shipping, Amazon may gain a handful of serious advantages by ditching the third-party shipment structure it has used in the past. Not only does the move provide an in-house method for the company to move inventory from Amazon China to the US, but it also opens up the potential to move other company's shipments as well. Market predictions are seeing improving expectations in the ocean freight industry within the coming years, so Amazon China is in an excellent position to catch a piece of that growth. As noted by Flexiport, however, it may be months (or years) before inventory begins to move through the newly acquired shipping method.

Photo: © iStock.


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