Amazon offers ocean shipping at discounted rates
Amazon Corporation is launching a freight forwarding option that offers a wide range of transportation services. The offer is designed for a variety of customers, including factories and complex distribution centers. The main advantage of Amazon is affordable rates, which increases the chances of the American giant gaining a foothold in the logistics market.
According to analysts from Drewry, the average maritime freight rate for a 40-lb. container between China and Northern Europe is about $13,600. This figure is 61% higher than what was observed during the same period last year. Shipping a container from Shanghai to Los Angeles will cost $10.4 thousand, up 141%. If we compare the size of rates at the moment with the period before the pandemic, the rates have increased 5-6 times.
This situation negatively affects the suppliers of products. Importers have to look for options to reduce transportation costs. Amazon wants to enter the market due to lower rates, which should attract a large number of customers. Companies already doing business on the corporation’s platform will be able to take advantage of affordable freight forwarding services. In case a customer commences cooperation in ocean freight forwarding, he/she will get an 8% discount from Amazon, which is valid for 60 days. The company transports cargo from China and Hong Kong to the European Union, USA, Japan, and Great Britain. Containers will arrive at the company’s fulfillment facilities. In the near future, Amazon plans to expand its routes to include shipments to India, Thailand, and Vietnam.
In addition to shipping, Jeff Bezos’ corporation offers air freight forwarding services. Customers get a wide range of services, including pickup of goods at the point of origin, palletizing, and labeling. In addition, the company undertakes cargo insurance and customs clearance at the point of origin and arrival. Airfreight takes 7 days, including delivery from the manufacturing facility to the fulfillment center.
Thanks to the direct route from China or Hong Kong, customers save significantly on costs compared to traditional logistics routes, which involve several transshipment points. Amazon takes care of organizing all transportation for companies that work on the platform. These customers can take advantage of an end-to-end service that includes the ability to track moves and checkout.
Amazon has been actively expanding its lines of business for several years. For example, for air transportation services, the giant has a fleet of planes in North America. They carry out transportation under the Amazon Air and Prime Air brands. In addition, the company in the last two years has launched new logistics hubs in the U.S. and Germany.
