Taking global, local. How Chinese Freight Forwarder's fare in the wake of Amazon's Chinese Subsidiary; Beijing Century Joyo Courier Service Co.

Taking global, local. How Chinese Freight Forwarder's fare in the wake of Amazon's Chinese Subsidiary; Beijing Century Joyo Courier Service Co.

It’s to no surprise that you have not heard of Amazon’s growth in the ocean freight space, but they are moving forward with what appears a clear vision to dominate the shipping industry, and quickly.

According to multichannelmerchant.com, “In the past year Amazon Logistics and its Chinese subsidiary, Beijing Century Joyo Courier Service Co., has shipped 4.7 million cartons of consumer goods, or 5,300 shipping containers, from ports in China to Long Beach and Seattle, according to research from Ocean Audit. For some shippers it also then moves the goods from the port to an Amazon fulfillment center.”

The pace that Amazon has moved forward with their new China-USA lanes is impressive and will undoubtedly disrupt the Chinese freight forwarding industry as considerable volumes of cargo are shifting away to Amazon’s vertically aligned subsidiary.

For the average Chinese forwarder, the horizon looks concerning and making the right strategic steps early will be a necessary step to offset the pending financial calamity that will likely impact the freight forwarding and logistics industry in China.

Obvious and clear impacts will be felt by those companies managing fulfillment from abroad. As capacity opens up with Amazons shipping company to include large, medium, and small merchants, a vacuum effect will leave the manufacturer warehouse floors clean and Chinese Fulfillment Companies, scrambling for new advantages.

American eBox is a strategic partner offering significant advantages in the areas of local distribution and warehousing for global partners.

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