Amazon targets freight forwarding with Global Logistics offering

By Damian Brett

Amazon is looking to ramp up its freight forwarding business as the e-commerce giant continues to expand its supply chain offering.

Reports suggest the company is looking to grab marketshare in freight forwarding by offering low price container shipping services.

German publication Handelsblatt said the low-price policy comes at a time when ocean shipping prices remain well above historical levels due to container shortages and congestion at ports.

Amazon has had a presence in the forwarding market for a few years, but the Handelsblatt report indicates the e-commerce company is now looking to ramp up operations.

Forwarding services are available to retailers that sell on the Amazon online marketplace under the company’s Amazon Global Logistics (AGL) brand.

The company is offering an 8% discount on ocean shipping services for the first 60 days after onboarding.

Current spot market prices for shipping services from rate portal Freightos for China/East Asia to North Europe are around $14,700 per 40 ft container, although contract prices should be lower.

At the moment AGL offers transport from mainland China and Hong Kong to fulfillment centres in the US, UK, European Union (EU), and Japan.

The company is in the process of expanding our services to other geographies, including India, Vietnam, and Thailand, for select transportation modes.

It offers standard ocean FCL and LCL and airfreight and end-to-end solutions including local pickup, palletisation, labeling, cargo insurance service, and customs clearance at origin and destination.

On airfreight, AGL offer sdedicated charter flights with a typical seven day transit time from origin to fulfillment centre.

“You can ship directly from mainland China and Hong Kong to US, UK, EU, and Japan fulfillment centres and reduce your landed costs,” AGL said. “You enjoy a streamlined, end-to-end shipping experience, from cargo pickup at the origin to shipment to the fulfillment centre. We offer competitive rates, a user-friendly portal to book and track your shipments, and customer support.”

In 2017, the company registered itself as an NVOCC through its Chinese subsidiary Beijing Century Joyo Courier Services.

What does Amazon’s move into oceanfreight tell us about its plans for air cargo?

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