Key insights

• ⚙️ Amazon is taking unusual steps to mitigate the impact of supply chain chaos, such as chartering cargo ships, making own containers, and investing in logistics
• 📈 Record high of 77 container vessels waiting in California, San Pedro Bay, with a trucker shortage at an all time high of 80,000 in the U.S.
• 💰 Prices on Amazon's site up by an average of 25% and 14% rise in out-of-stock items since the start of the year
• 📊 Amazon optimizes its supply chain using data to make real-time shipping decisions, while facing bottlenecks in container availability, dock space, and truck transportation
• 🚢 Amazon is making its own 53-foot containers in China, increasing ports of entry, and chartering vessels to address congestion at U.S. ports, giving them more control over their shipping journey and ensuring faster offload times
• ⛴️ Amazon and other major retailers are chartering smaller vessels to bypass busy ports and expedite unloading, impacting freight rates, port congestion, and on-time deliveries
• 🛫 Amazon is expanding its Amazon Air cargo fleet with 85 leased and owned aircraft, looking to lease larger long-haul planes to fly goods from China to the U.S., and offering sign-on bonuses to attract seasonal workers
• 🏭 Amazon is opening new fulfillment centers to address supply chain backlog, while government initiatives aim to improve port operations and reduce emissions, and collaboration and outsourcing are considered as potential solutions

Q&A

• What other initiatives is Amazon undertaking to address the supply chain backlog?

  Amazon is opening new fulfillment centers, while government initiatives aim to improve port operations and reduce emissions. Collaboration, outsourcing, and even selling container space to competitors are also potential solutions under consideration.

• How is Amazon expanding its cargo fleet to enhance shipping?

  Amazon is expanding its Amazon Air cargo fleet with 85 leased and owned aircraft, and it's reportedly looking to lease larger long-haul planes to fly goods from China to the U.S. The company is also offering sign-on bonuses to attract seasonal workers.

• How are retailers bypassing busy ports to expedite unloading?

  Amazon and other major retailers are chartering smaller vessels, repurposing containers from multipurpose vessels, and impacting freight rates, port congestion, and on-time deliveries.

• How is Amazon addressing congestion at U.S. ports?

  Amazon is making its own 53-foot containers in China, increasing ports of entry, and chartering vessels to ensure faster offload times and more control over their shipping journey.

• How is Amazon optimizing its supply chain?

  Amazon uses data to optimize shipping decisions based on cost and potential delays. Bottlenecks in the supply chain include container availability, dock space, and truck transportation. Container shortage and high shipping costs are impacting the supply chain.

• What steps is Amazon taking to mitigate the supply chain impact?

  Amazon is chartering cargo ships, making its own containers, leasing long-haul planes, and investing in logistics to control the shipping process and reduce reliance on external shipping services like UPS and U.S. Postal Service.

• What is causing chaos in the supply chain during the holiday season?

  A record high of 77 container vessels waiting in California, San Pedro Bay, a trucker shortage at an all-time high of 80,000 in the U.S., rising prices, and out-of-stock items are causing panic in the supply chain.

• 00:00 Supply chain chaos is causing panic in holiday season with container vessels waiting in California, trucker shortage, and rising prices. Amazon is taking unusual steps to mitigate the impact, such as chartering cargo ships, making own containers, and investing in logistics.
• 02:33 Amazon optimizes its supply chain using data to make real-time shipping decisions. Bottlenecks in the process include container availability, dock space, and truck transportation. Container shortage and high shipping costs are impacting the supply chain.
• 05:03 Amazon is making its own 53-foot containers in China, increasing ports of entry, and chartering vessels to address congestion at U.S. ports. This gives them more control over their shipping journey and ensures faster offload times.
• 07:32 Amazon and other major retailers are chartering smaller vessels to bypass busy ports and expedite unloading. Containers are being repurposed from multipurpose vessels, leading to high demand and expensive leases. Different size container ships impact freight rates, port congestion, and on-time deliveries.
• 09:55 Amazon is bypassing ports by expanding its Amazon Air cargo fleet with 85 leased and owned aircraft. It's reportedly looking to lease larger long-haul planes to fly goods from China to the U.S. Despite the high cost, Amazon is willing to pay for cargo plane leases. The company is also offering sign-on bonuses to attract seasonal workers.
• 12:30 Amazon is opening new fulfillment centers to address supply chain backlog, while government initiatives aim to improve port operations and reduce emissions. Collaboration and outsourcing are also seen as potential solutions, with Amazon considering selling container space to competitors.