Amazon is planning to offer international air cargo services to its sellers in China, according to a report by the Wall Street Journal.
Contrary to Amazon’s recent disavowals of its plans to compete directly with the likes of UPS and DHL—supposedly Amazon’s ventures into freight have been to supplement existing carriers, to help them cope with high volumes during peak seasons—this would take the company one step further towards rivalling other global freight companies.
Amazon already handles ocean freight for Chinese sellers on its site, for dispatch to its US warehouses. Their air cargo service would fulfil the same role, but it would make express services viable.
The company already has the technological footing to develop a user-friendly platform for shippers.
Ryan Petersen, CEO of freight forwarder Flexport Inc, has described the move as “a huge wake-up call to an industry that’s been very slow to adopt technology.”
(Source: Market Watch)