The unprecedented Covid-19 pressed the global supply chain and when things have started coming in line with normalcy and the global economy has reopened, it has created multiple bottlenecks in the supply chain. The trade boom with surging demands has skyrocketed the price of shipping containers as high as $20,000 from the usual price hanging below $2,000.
Nevertheless, the e-commerce giant Amazon seems to be least affected by the container conundrum. Its farsightedness and jumping into making its containers since 2018 has made it escape port delays- the most unwanted friend of the freight corridor these days.
Amazon has been making its containers since 2018 and has been able to manage 70-75% of its shipments through its transportation network. Amazon logistics managed to ship over 5,300 containers from Beijing to ports in California and Washington State. Since then, Amazon has been upscaling its art of self-reliance and now ships over 10,000 containers per month.
Moreover, the e-commerce giant founded by Jeff Bezons in 1994 has also been chartering bulk carriers on its own which gives it an edge in drawing its routes and inducing better efficiency in its transportation ecosystem avoiding port delays and backlogs.
Amazon has invested around US$4 billion to avoid port delays and backlogs for better vessel turnaround time. This has helped the biggie significantly to dominate the e-commerce sector as it ships nearly 72% of its shipments, jumping quite high from its past 47%.
Retailers have been switching to financially engineered strategies from chartering bulk carriers to making their containers. Companies like Walmart and Home Depot are to follow this strategy but Amazon, with its already long stretched legs and far-sightedness, has an unparalleled advantage over others.
Ankur Kundu
Correspondent
