Amazon is taking to the high seas with freight business

Amazon is looking at all kinds of ways to improve logistics and reduce costs. They’ve been experimenting with drones and buying truck trailers, and now they’re taking to the high seas.
Seattle is home to one of the busiest ports in the US, and Amazon is moving as much freight through it as anyone. They’re now setting up shop in China, where the operation is listed as “1 Beijing Century JOYO Courier Service Co.” By receiving authorization from the Federal Maritime Commission, they can now extend their Fulfillment by Amazon services to their numerous Chinese suppliers.
Just like with the truck trailers they purchased, Amazon won’t actually own the vehicles themselves. They’re acting as a freight forwarder. That means they’ll be organizing shipments from the factories in China to their final destination. For now, that means an Amazon warehouse. Eventually, if Amazon has their way, it’ll be your front door.
The people most likely to benefit from Amazon’s latest move? Amazon themselves, though customers will likely see some savings, too. Analysts believe that Amazon should be able to secure more favorable pricing from their suppliers since they can provide end-to-end logistics, and that could lead to lower pricing for shoppers.
San Francisco-based Flexport also believes that Amazon has one major advantage over the competition: they’re very, very good at automation. Since a good chunk of shipping a container of goods overseas is labor, Amazon might be able to further improve their bottom line if they can apply their warehouse expertise the shipping yard.

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