Amazon which is currently busy in sending millions of packages to people across the world may venture into a newer avenue – getting into the shipping business. The main purpose is to increase the volume of shifting products.
According to Flexport, the Chinese wing of Amazon is to operate as an “ocean freight forwarder” in the United States. It has given the Amazon to ship its goods from China to US. Simultaneously, it will also carry freight for other companies during the same time.
Amazon may benefit from its ability to ship Chinese good to its own fulfillment centers. As it would allow it to directly fulfil orders for more Asian suppliers, which happens to be quite attractive to customers. It is a baby step for Amazon in the world of shipping industry and it might take some years to set its first ship on sea.
The economist has made a mention that this is the right time for Amazon to get into the shipping business with shipping market in steep decline which may recover soon.
Source: Flexport
