Amazon to disrupt logistics industry

Logistics companies could
soon find themselves
competing against Amazon,
which will be leveraging
off the millions of parcels it
ships around the world.
The online retailer’s
Chinese division has
registered as a seafreight
consolidator according to
the US Federal Maritime
Commission.
Not only will this take
business away from existing
third party suppliers to
Amazon, but it will open up
the possibility of Amazon
competing against them in
the future.
The establishment of its
own non-vessel operating
common carrier (NVOCC)
gives Amazon a foothold in
the US$350-billion-a-year
ocean freight business.
While not (yet) in direct
competition with the
shipping lines, Amazon is
reported to be targeting
airfreight business.
In 2015 the Seattle Times
reported that Amazon was
negotiating a deal to lease
20 aircraft for its United
States operations.
Amazon has also been
experimenting with drones
for deliveries to customers,
which would cut out
couriers.