© Roza
Amazon plans to use container ships as DCs, and deliver directly by drone

Amazon is building on its recent entry into ocean freight forwarding with plans to invest billions of dollars in its own container shipping fleet.

It is seeking new economies of scale in every area of its international supply chain.

A person who was familiar with a person familiar with the matter, told The Loadstar that Amazon was now developing a strategy of not just controlling the entire end-to-end of its supply chain, but every other supply chain too.

“What Jeff Bezos has worked out is that if Amazon delivers absolutely everything in the world, then it really doesn’t matter what the cost of shipping will be – we’ll all have to pay it.

“What he’s trying to do is consolidate the freight buyer’s market to just one: Amazon. Walmart is a target; Home Depot is a target; Target even admits it’s a target, by calling itself a target.

“That’s the beauty of disruptive technology – Bezos is using Amazon’s cutting-edge tech to become the world’s first retail oligopoly, integrated into an oligopsony – and no one realises that’s happening; right under their very noses,” he allegedly said.

“Acquiring ships is the final part of that strategy. Amazon’s advanced predictive data has outlined that, with so much overcapacity in the global container shipping fleet, we should buy all of the world’s containerised consumer goods and store them on the vessels – there’s certainly enough spare space.”

According to Amazon insiders, the company’s supply chain eggheads are also drawing up a new operating model that could see container vessels anchoring off the coast of large consumer centres – such as the San Pedro Bay, Hudson River or English Channel – and using drones to deliver directly from ship to consumers.

This would cut out the need to use congested container ports, troublesome truckers and fractious freight forwarders, as well as redefining the concept of “near-shoring”.

“Owning our own ships also means we can offer ourselves slow-steaming or express container services; and in fact, our developers are now working on the concept of a ship that can steam slow and fast simultaneously – depending on whether customers are “Prime” members.”

Amazon investors are understood to be backing the strategy, and are braced for between two and three decades of excoriating losses.

“After all, that’s no longer than the container lines have been swimming in red ink and because of its edge in tech, no one can play the zero-sum game as well as Amazon,” the source told The Loadstar.

He added that non-containerised consumer goods, such as luxury cars and super-yachts, the big bucks stuff that the hoi polloi can look at in Amazon-delivered glossy magazines, are reserved for Mr Bezos and his friends.

COMMENTS 12


Leave a Reply

  • Michael

    April 01, 2016 at 1:53 pm

    what date is it today? 🙂

    Reply
  • Rob Jervis

    April 01, 2016 at 2:50 pm

    Gav – one of the best I’ve seen today

    Reply
  • Ken Galka

    April 01, 2016 at 3:11 pm

    I knew they’d do it!!!!
    Happy April 1st

    Reply
  • Y K Chan

    April 01, 2016 at 3:42 pm

    Wonder what’s the onboard loading and discharging operations will be like? Can drones lift a laden container or a pontoon hatch-cover? And time required to do so?

    Where and how to clear Customs?

    Reply
  • Alan Hedge

    April 01, 2016 at 3:53 pm

    Laughed til I cried – two thumbs up!

    Reply
  • Steve Sewell

    April 01, 2016 at 4:59 pm

    Great April Fool’s joke Gavin! Having worked in downtown Seattle the last couple of years next to construction of Amazon’s two new 40 story office towers, your article actually seems realistic!
    Hope all is well.
    Steve (formerly of Hutchison subsidiary ‘LoadStar’.

    Reply
  • Frank

    April 01, 2016 at 5:15 pm

    well-done Gavin – thank you for making me laugh today

    Reply
  • Craig Jallal

    April 01, 2016 at 6:42 pm

    Ten out of ten!

    Reply
  • Gavin van Marle

    April 02, 2016 at 12:37 pm

    Thanks for your kind words one and all. Glad I could put a smile on your faces,
    Gavin

    Reply
  • Russ Green

    April 05, 2016 at 4:45 am

    ha ha nice one Gavin, had me for minute

    Reply
  • BMiller

    April 07, 2016 at 2:22 pm

    tremendous, just tremendous… embarrassed to admit that I actually made it half way through this, huh-ing and what-ing, before waking up

    Reply
  • Jim Hanscom

    April 08, 2016 at 5:22 pm

    Sounds like an April Fool joke, a ship that can go faster or slower at the same time.
    Check date.

    Reply

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April 1