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Dec 4, 2021

Amazon is making its own containers and bypassing supply chain chaos with chartered ships and long-haul planes

Posted by in categories: chemistry, food, habitats

This season, a handful of other major retailers — Walmart, Costco, Home Depot, Ikea and Target — are also chartering their own vessels to bypass the busiest ports and get their goods unloaded sooner.

“The real purpose of these vessels when they were built was not containers. It was really lumber, chemicals, grain, agricultural products. But because of the ingenuity and creativity and lack of space, Amazon and many other smart people have quickly figured out how to convert some of these multipurpose vessels to container,” Ferreira said.

For some of the highest-margin goods, Amazon is avoiding ports altogether by reportedly leasing at least ten long-haul planes that can get smaller amounts of cargo directly from China to the U.S. much faster. One of the converted Boeing 777 planes can carry 220,000 pounds of cargo. According to capacity estimates from Ocean Audit, the small 1,000-container freighters being chartered by Amazon and others can hold 180 times that, with the biggest cargo ships carrying more than 3,600 times what the planes can hold.

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