Amazon’s new logistics plan set sail — on the ocean

Eager for more control of how its products are shipped, Amazon is now organizing oceanic shipments.



Taking on the role of a freight forwarder, or the organizer of shipments between manufacturers and distribution points, the Internet giant is working with carriers that own their own vessels. This includes booking cargo space on ocean-faring ships, and that will transport goods from those ships to warehouses, reported Tech Crunch.



Amazon is currently managing shipments of goods between Chinese retailers selling on its platform and its U.S.-based warehouses. Since October, the company has organized approximately 150 containers of goods imported from China, Tech Crunch said.



Further bolstering this effort, the company’s Chinese affiliate registered with the U.S. Federal Maritime Commission to become a licensed ocean freight forwarder, a move that allows the division to buy and sell space on vessels, according to Splash 24/7.



This is Amazon’s latest move in directly controlling shipments and further removing cost from its logistics operations. For example the company has purchased thousands of trailers pulled by tractor trucks provided through partnerships with third party transportation firms. Their job: to shuttle inventory throughout the supply chain.



Amazon also leases an air fleet of 40 Boeing cargo jets, a program it calls Amazon Prime Air. The company is also in the midst of testing delivery drones.