Amazon charters vessels for supply chain control


Amazon has sought to gain more control over the course of the supply chain for years by making its own containers, chartering private cargo ships and more – steps that now give the e-commerce giant a leg up in the chaos of the world. supply chain world in 2021, CNBC reported. .

Amazon is able to skip the most congested ports via private freighters, according to the report.

The company has spent a lot of money to meet its goals, including more than $ 61 billion in shipping in 2020. This has helped it now ship 72% of its own packages, an increase from 47% in 2019 , according to data from SJ. Consulting Group cited in report.

In addition, Amazon is taking control of the manufacturing of shipping containers, which are scarce and suffer from massive price increases, the report says. The price is around $ 20,000, up from $ 2,000 before the pandemic.

Lauren Beagen, founder of Squall Strategies and maritime lawyer, said in the report that Amazon “basically guarantees that the equipment will be available to them.”

In addition, Amazon is taking another route for some higher margin products by leasing planes to bring freight directly from China to the United States, one of which can carry 220,000 pounds of freight, according to the report.

The outlook is not all rosy for the e-commerce giant, however. Amazon still saw a 14% increase in out-of-stock items. And prices have increased by 25% on average, according to CommerceIQ data cited in the report.

Amazon isn’t alone in trying to avoid supply chain chaos, as other big companies like Walmart, Costco, Home Depot, Ikea, and Target have also chartered their own ships to unload goods faster. according to the report.

Supply chain issues have resulted in more items than usual going out of stock during the holiday season.

Read more: Three words begin to define online shopping 2021: “Out of stock”

According to Adobe’s Digital Economy Index, out-of-stock messages have increased 32% since June, with some of the highest since then being for clothing, sporting goods, baby products and more. ‘electronic.

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NEW PYMNTS DATA: 2021 HOLIDAY SHOPPING PERSPECTIVES

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