How Amazon Beat Supply Chain Chaos With Ships, Containers And Planes
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- Опубликовано: 3 дек 2021
- As supply chain chaos causes shipping delays this holiday season, experts say Amazon’s logistics empire and predictive analytics will allow it to avoid the worst of it. Amazon leased long-haul planes to get goods from China to the U.S. faster, and its been making its own containers and chartering private cargo vessels for years. Now retailers like Walmart, Home Depot, Target, IKEA and Costco are trying out the tactic, chartering smaller vessels to bring goods to less congested ports.
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How Amazon Beat Supply Chain Chaos With Ships, Containers And Planes
Amazing. It's cheaper to buy planes and ships and make your own containers than it is to buy goods made in North America
No it just proves that affordable and good quality things can be manufactured in America
Blame unions
@@iconsumedmt1350 no, America is plain expensive place to manufacture
Labor is way cheaper there. You want to work for a $1 a day?
Not quite the whole truth, because making goods in North America would also require the buying (or constructing, or even fundamental development from scratch) of factories and tooling machinery, as well as developing material supply chains, training a workforce, etc.
So basically, Amazon’s strategy is just “If you want something done, you’ve gotta do it yourself”. No wonder they’re such a prosperous company!
Not prosperous compliant company
Soon they will be in charge of food distribution
@@crisdlcruz145 they've also recently gotten heavily into pharmacy sales and delivery.
@@hewhohasnoidentity4377 That is why when I walked in a store during the PLANDEMIC and they ask "where is your mask a.k.a BREATHING BARRIER", I walk out and shake my head. Because amazon will eventually become the biggest oligopoly we've ever seen and it will DESTROY everything in it's path. They will start doing produce/frozen/fresh products in the next decade. I haven't walked foot in a store since the PLANDEMIC started because I refuse to participate in UNscience. When I order something from Amazon they never ask me to wear a Breathing Barrier that have no exhalation unit on it, thus causing you to breath in your own garbage. I just pay and I get what I paid for. I never wanted to support amazon and leave behind the small businesses but small businesses did this to themselves. What a lot of people doesn't know is that these business got a 70 percent of their income supplemented by the government, that is why they stayed closed during the PLANDEMIC. In other words they made more money staying closed than if they were to open, because they didn't have to pay employees. And now Amazon will DESTROY THEM ALL! It's a bitter sweet, but that's what happen when you've become the warden of your own prison.
No, if you want to pay cost instead of retail for a service and exert more control, you’ve gotta do it yourself.
@@SrChalice - I just ignore the local masking ordinance when I go to the grocery store.
I’m not a fan of Amazon but I genuinely admire the agility of the organisation. Many big companies could learn from that. They can be so rigid because a thick layer of middle managers try to keep things the way they are rather than focusing on increasing productivity through empowerment.
Imagine a big company where potent managers actually THINK tactically.
Amazon cuts the middle man out so they don't have to depend on nobody.
imagine if amazon actually paid their workers more than 15 an hour
@@charlesa3505 They have been… Since 2018.
Amazon is a case study in how you can actually take over the world one sector at a time. They started out relying exclusively on others for their shipping and over the years they have become a threat to those that they relied on in the past.
What I found most surprising is that the main ports in the US where not 24/7 until recently. I had always just assumed that in the country where capitalism is king such critical parts of the infrastructure are naturally 24/7 just like airports but I guess that somewhere in the process something when terribly wrong and infrastructure has been neglected because a non 24/7 port is in my mind just a way to limit commerce and nothing else.
"yes, the planet got destroyed , but for a beautiful moment in time we created value for the shareholders."
As much as I hate amazon, they are getting through this by being extremely proactive, whereas other companies refuse to adapt and do the bare minimum. Here in australia for example, our public postage system is probably the most reliable service you can use to get your parcels delivered on time, which is the only service amazon used to ship their parcels here. However our corrupt politicians forced the public postage business' ceo to leave because they were doing 'too' good and they wanted to privatize them. Today, it can take upto 2-4 weeks to receive even local orders from them.
Before the effects of this could even be felt by consumers, amazon immediately switched to other partners when the ceo was fired and people still got their parcels on time. Even the crappiest logistics/shipping company in the country started delivering amazon parcels on time somehow.
"Extremely proactive"???
Meaning government "help".
@@TheJaxsonjack exactly bro this Jews get it done like that.
And here in usa the postal service is a joke.....and I am being nice.....I get mail twice a week Tuesdays
and Fridays.......that is Our delivery schedule even for the holidays ...
@@haroldk724 What? Did you even listen to your words? You're complaining that you get mail twice a week consistently? You literally just compared that to the "2-4 weeks" from OP's Australia's comment? Boomers will complain about everything and anything even though ya'll got handed everything and fked up our economy for the future generations.
AWS was really a blueprint for their shipping business; build out the infrastructure that they need for their own business and then massively scale it to sell to other companies.
Even In Washington post they've built some tech and selling to other media companies that's some genius business skills by bezos
Bezos gets far to much hate than credit. Im not saying he dosent deserve hate, he definitely does. But what im saying is that he has made some ridiculously smart moves and decisions that will have made amazon a top company for years to come. .
Has anyone seen Idiocracy ? Instead of Costco it will be amazon.
Yes they're repeating what they did with AWS; build a core requirement in-house, but built to serve "a customer". That customer can be Amazon or anyone else willing to pay. Fantastic business sense.
Logistics is Amazon's bread and butter.
@@MegaMeco2 it was not his ingenuity or intelligence, it was money he made from Amazon over 2 decades that enabled him to do all this.
Soon Amazon will be creating its own ports and its own railroads.
I am expecting that to happen after seeing this video. Amazon has changed how we consumers shop and buy items, they can change logistics systems as well.
Church
They may have already beat you to that punch........
And government. Expect USA to change to Universal Stores of Amazon.
I heard they had plans to use massive blimps as fulfillment centers and drones to ferry them off, not railroads or ports but still.
If the United States had its own Manufacturing Industry again, it wouldn't need to worry about supply line breakdowns.
That would literally break the US economic model of having the US dollar as the global reserve currency
You can't have manufacturing as well as having the US dollar as the global reserve currency
Choose on other the other, not both
You do realize literally every country has supply chain issues right now right? Take an economics class, sadly its just not that simple to resolve.
Exactly! I never could figure out why us companies want everything from foreign countries and not make our own products! China is laughing all the way to the bank
@@dgrooveicb because you have zero knowledge about world economy, finances and accounting.
@@dgrooveicb Because US labor cost is astronomical. If you are willing to make shoes on a few dollar a day, then America can compete with China/ASEAN countries.
Shipping cost argument doesn't matter, because even if you manufacture in US, you still need to ship the raw materials to US. This is called competitive advantage.
To take advantage of this competitive advantage as an American, you invest in future growth industries, because US dollar is worth more.
As someone who works in an Amazon fullfillment center, i appreciate the reminder that the seasonal workers are getting these bonuses, while those who have been here for years, get absolutely nothing.
Feel free to quit.
I work for a distributors for another company and I hear you we get screwed too
Don't worry, anyone who has those jobs or has gotten one will tell you no one has received any signing bonuses.
Yeah no kidding, just like how minimum wages increased.. but many workers who make more did not see any raise. And this is why so many skilled workers quit to start fresh at a higher pay.
Actually my new location we all got our sign up bonuses so maybe it depends on the location . I had got a $1,000 sign up bonus. But that’s cuz it’s a new warehouse in my city.
We all know Bezos takes alot of crap from people and gets meme'd constantly but honestly what he has built is incredibly impressive. It's cool to watch in real time
People hate Bezos with passion. They hate him so much, that they still shop on Amazon.
He's not their CEO anymore by the way...
@@victoriancu7358 you can hate a ceo. Doesn’t mean you have to dislike the company itself
People alway hate, unsuccessful lazy people hate the hard working successful people.
He is single handedly battling increasing consumer costs... What a devil..
It always bothers me that few of these reports or companies mention or leverage the railroads to help deal with these shortages. Two employees moving hundreds of containers vs one per truck and container.
Agree
Not sure where you are coming up with that, almost the entirety of the non-local container freight goes by rail.
Union Pacific and BNSF haul it to more or less the Mississippi River, where it is picked up by CSX or Norfolk Southern. And that’s not counting the Canadian coast to coast operations via CN and CP.
Ships are loaded by regional destinations. If they are loaded for cargo with destinations east of the Mississippi they will go to ports in the atlantic or gulf states.
The biggest crux of the matter is a lack of chasis. During the rush period before christmas there simply isn't enough of them to go around.
I think ultimately there is a lesson to be learned here that we must shift production back to the Americas because this problem isn't going away soon.
@@Glidescube They should move factories to Latin America. All those migrants will have jobs. If they get wealthier there is less reason for them to go the US.
Amazon has become a formidable empire of it’s own. Here in India too, their logistics is unbelievably fast and reliable. Basically nobody could have imagined such leap in very less time. They are near perfect anticipating worst scenarios and acting proactively.
What will Amazon do when people stop buying things from China?
@@TheVoiceInYourHeadd that will never happen...what they make is better
@@TheVoiceInYourHeadd Will not happen, in sometime China will become more expensive to produce stuff and India will become the new china.
@@TheVoiceInYourHeadd they’re going to shift either to other East Asian/ south Asian countries, African or middle eastern ones, east European in some cases.
Then, they’ll try to get bigger at basic goods production (things like tv’s, speakers, or home appliances.
If it doesn’t work, they’ll get more and more invested in the infrastructure sector, for telecom’s and general shipping/transport business
The difference between Walmart and other retailers and Amazon is that Amazon has hundreds of thousands of sellers sending inventory for free to their warehouses. And they get to charge the sellers for this. They aren't so much of a retailer, they are a platform. Kind of like Craigslist, but more advanced. Walmart on the other hand source most of their products directly.
Most of the stuff sitting in those shipping containers that are blocked in California are going to Amazon anyways, so of course Amazon won't be affected by product shortages.
Yeah, they don't need to spend on inventory.
Amazon charges 20% of selling price for listing. We don't hold much inventory.
@@johnsarab4500 exactly
@@johnsarab4500 Amazon doesn't pay for it. They get paid
How can you know that for sure though? Recently I had an interview at Amazon for Software Development, my interviewer was a guy who worked in the "Returns " department, SDE 3. I asked him the same question at the end of my interview: "Does Amazon purchase all the goods and then sell it or does it simply provide a platform to connect buyer and seller?"
His reply was "It depends"
He said it was a company secret and could not explain the details, but he said it depends a lot on the demand and supply for a particular product before Amazon makes that decision...
Even in this video, its clearly said they have a lot of data on us and anticipate demand. Now of course, it cannot exactly predict what I'm going to buy for Christmas, but it can make a guess on the no. of iPhones they are gonna sell in the mass market, and pre-order goods.
Its actually really smart...
I have been in the technology business since 1997 (at least). Many years ago, I talked with software developers who were building software for last mile delivery, combining freight to fill containers, etc. It's shocking that after all this time, there is still the same problems.
The problem is not software. Has nothing to do with software.
The problems lie with failed policies and dirty politics at the expense of consumers, not a technology setback.
The software exist at least since 1984 for this. Its a HW issue, not an SW issue.
I might know why... after 9/11 so many IT advancements of both software and hardware were reallocated to the defense industry. I know a few companies whose contacts with commercial companies were “terminated” or “reassigned” to the defense industry. Interestingly it resulted in a slight delay of the tech boom. I’m not too sure about now though.
All because of greed, and competitivity between countries and companies. This is why as John Lennon said, we should not have any different countries
From selling books from his garage to this... absolutely incredible!
You also have to give a huge credit to his parents which gave him $300 k to start it all.
@@lrodd247 if you say something like that, we should thank his parents for giving him birth.
@@troll2637
Not really. Mostly any female can give birth... But a very small percentage of the population is able and willing to hand over $300 k to their son or daughter at a young age. Between his huge financial help and his creativity and intelligence, you get what we see.
@@lrodd247 reading your reply made me agree with you. However, your first comment made it seem like you gave all the credit to his parents.
@@troll2637
I agree, I should have elaborated. Glad we can still have a respectful convo in this day and age. Have a good day 😎✌️
People keep saying "just send the ships to Florida or Texas ports" but there's a little hiccup called the Panama Canal that you have to pass through if you're coming from Asia. It's expensive, takes a lot of time, and most of the newer ships are too big to fit through it anyway
Just use Mexico ports there part of NAFTA
I thoroughly enjoyed being part of this video. A key point in the video is the importance of retailers collaborating on their supply chains. I will debate any CEO who claims that they can’t collaborate with another retailer including a competitor. Collaborating across supply chain does not minimize or interfere with the ability to compete.
WTF are you talking about? If amazon owns the planes, the ships, the containers, etc. They aren't competing they are monopolizing the game. Do you honestly think Amazon would be ok with helping out its competition? They have nothing to loose from "partnering up with another business" because at the end they just add more data into their system and isn't that what is valued more than goods?
@@Arewethereyet69 You're missing the point. Walmart and Home Depot are utilizing each others empty trailers, drivers, and other assets to keep the supply chain moving. The Big Three automakers, the railroads, and TTX have been doing this since the 60's. It's called a Pool Agreement.
You mean they were anticipating future problems and figuring out solutions and just not hoping that the situation reverses itself? Sounds like a company that wants to stay competitive and grow.
Right.
I see nothing wrong with this. May the best man win lol
@@deetaylor Neither do I.
Well said
That's to be expected from the biggest company on the planet that intends on world monopoly
Amazon really is so incredible. I’d get packages next day arriving with the tape not even fully sealed on, that’s how fast they got it out to me 😵
🤣🤣
When you prioritize speed above all else other areas like quality usually take a hit
@@JacobDegenaro
And pay
@@Pernection and drivers peeing in bottles.
That's why they loose so many packages. If the item comes out of the box it's lost. Once it becomes separated from the shipping label they don't know where it goes. And they won't put any effort to figure out where it belongs, it's just lost.
Global trade is crazy, make stuff locally - less pollution, more diverse products, and local employment in things more rewarding than just warehouses.
We need a chance again to make our own we americans aren't dummies ok
After all the mess we are experiencing, we'll understand that shipping lines have actually just let Amazon gain experience in containers logistics... Once Amazon gets involved in something they then become very good at it! Shipping lines will for sure regret that....
Really? We will see then
One of the best reports i've seen on this topic, and I follow a lot of channels that covered this topic...
Solid report.
Yeah love these mini documenteries
@@senoow4215
Check out the 2-hour Amazon documentary on the PBS Frontline RUclips channel. Although it's not specifically about supply chains, it's excellent.
For supply chain-related topics, there's another RUclips channel called the Epic Economist" that puts out a lot of short mini-docs like this one, albeit with a doom&gloom sky-falling vibe.
@@brad3378 Thanks, will do.
really, so an biased video of only the "good things" is "One of the best reports i've seen on this topic"? This must be a joke??? Please tell me you were joking. Or else this is just sad.
@@Arewethereyet69 explain why it isn't if u so smart 😂😂
It's amazing that they say the ports of New Jersey and Houston are small. They are some of the biggest in the US. The only reason they're not backed up is because they don't have direct access to Asia.
It’s bause America is the worst country and failed country wahah
Did you just copy someone's comment? 😂😂 Not sure if it was them or you lol
its the route they use its cheaper to use the pacific route compared to the indian and atlantic route
"Small" vs. "smaller." The word used was "smaller." There's a very distinct difference.
@@AbsolutelyRedundant nope my comment was stolen. I'm Navy sailor and grew up in Houston. dark is just farming.
So Amazon had the foresight to build up it's own freight moving infrastructure, just as they built up a web service infrastructure, which is giving it a competitive advantage. Soon other companies will become clients of Amazon freight services. Wait about three years, and there will be people screaming about Amazon's monopoly on freight.
Buy with prime about to hit. Soon amazon will control everything lmao
No wonder my Amazon packages arrive literally the next day. I’ve been wondering this entire time “if there is an ongoing issue with cargo ships, how is Amazon brining my packages so fast” then again I order a lot of stuff from inside the u.s. so they most likely use planes
Amazing that a person that sold books in a bookstore has figured out how to operate the world better than the world.
There are more Teslas & Bezos to come to replace them as well. give it another 30 years
Maybe he was reading all those books too.
@@MAG320 So?
Virtually unlimited money allows you to do a lot of seemingly amazing things.
@@marcus_b1 yeah but you have to earn that unlimited amount of Money in the first place. Bezos started it from his garage with no money. If it was so easy everyone would be doing it.
The creative effort that American companies go to to help create manufacturing jobs in China is astounding.
very true mate.
Well, American companies need to step up their game.
@@LittleTut It is china that is willing to abuse its citizens with pennies is the reason that the manufacturing jobs go over to china.
@@LittleTut Ain't happening with woke protestors trying to forcibly hike up taxes and wages.
They like doing it because it is cheaper to hire in china and less strict labor laws
Amazon will eventually build its own ships. Build it's own ports in Oregon and perhaps building it's own ports in China. Eliminating the congestion and delays in shipping.☮️
Or buy out a lot of ports
Why a peace symbol? A monopoly of a company to controll everybody is not peacefull, but bad for the workingclass.
@@infestus5657 it's my signature.☮️
@@spoileralert3754 ah alright
You forgot... Amazon will eventually build its own China.
Mrs sonia is legit and her method works like magic I keep on earning every single week with her new strategy.
I think that she is the best broker I ever seen
Mrs sonia has changed my financial status for the best all thanks to my aunty who introduced her to me
Mrs Sonia is obviously the best, I invested $3,000 and she made profit of $28,000 for me just in 15 days
Her success story is everywhere
Who's this professional everyone is talking about I always see her post on top comment on every RUclips video I watched
One of the problems is that truckers can’t get to the port to pick up the goods. California has banned trucks with engines older than those built in 2010. They get stopped and audited and are restricted to run in the state. And you have to travel in California to get to the dock.
AWS didn't solve the container situation either. Getting a ship to dock is half the battle. If you look at Home Depot, Walmart and the likes they chartered their own ships only to not be able to secure dock appointments and wait for an "opening" when there are 100 ships outside the port itself.
California always end up being the donkeys.
10 years later I don't even have to place order on Amazon no more, Amazon AI would anticipate my need automatically and send me the stuff I want
A few years ago. Some girl got sent coupons for baby stuff, her dad flipped, but the ai detected she was pregnant
@@RosaParksShoe lmao
@@RosaParksShoe wow i wanna look into this more, do you have a link?
well thats their goal. Say goodbye to privacy.
@@RosaParksShoe it is true.
9:59 while we're all worried about our shipments, it would be more economically feasible to make the product here. 14:22 the collaboration to streamline the logistics is smart.
that would be great except for the fact that american workers are lazy AF and want to get free handouts to sit in their moms basement.
Got any idea how much your 65 inch Smart TV or amazing new iPhone 18 would cost you if it was Made In America?
That is why nothing is made here now except Whiskey, Zippos and Americans.
@@michaelbyron1166 don't have either. The cheapy insignia TV with a Sonos soundbar is enough with a google nexus 5 rooted with oxygen os. Problem isn't the labor, our problem is the economy where the people are to sleepy to understand the problem.
@@gtzgreatride Before 2018 an ipad made in the us would have cost 11k dollars
If production is moved away from Asia, raw materials or WIP will still need to be exported out of Asia. Effectively you'll be changing from importing 1 finished item to importing lots of raw materials. Your tonnage will go up and so will shipping prices. Labour costs are also far higher in most countries than in the countries that currently make up the majority of production. So, respectfully, I disagree that it would be more economically feasible.
Mostly just people buying things they don't really need.
I guess money CAN buy everything!
Money solves headaches
People that say otherwise are either poor and in denial, or rich and never wanted for anything in the first place.
But it sure helps.
It can't buy everything.
Notice how those smaller container ships are equipped with ship-mounted cranes. It allows for (un)loading without extensive dockside infrastructure i.e. large gantry cranes. that smaller ports don't have.
I'm not sure about the labor rules, but shipboard cranes might also be operated by ship's crew rather than ILWU operators.
That may be an important consideration in view of the current contract's expiration this June 2022. The ILWU agreed to a 3-year extension of the contract currently in place
. I would expect that they would want to make sure that any new contract takes into account the changed landscape in the US economy re labor market, inflation, Covid and so on.
Don't tell people the unions are offering an incentives for companies to not work with them. Some people have an ideology to mantain.
My question is why are we not building the containers in the states they are easy to build and it would create a lot of jobs our president should have been all over that
As much as people dislike Amazon I didn't use them for the longest time but they are legends in innovating the shipping industry
I only have a echo for it’s sound and use Amazon music cause mom has a family package lol but Amazon knows what they are doing and they do it well
Getting "essential" status, while small and private businesses were restricted by uneven "mandates, didn't hurt either.
but they won't cover that part, instead they glorify Amazon as some type of GOD. Video is all propaganda. No mention of Union busting, no mention of how Amazon has turned into a monopoly, or how it steals intellectual property.
Blame your government, not Amazon
I hope people understand how amazon made more money during the pandemic. Not through shady deals, not through robbing people but by planning and anticipating the worst in global logistic supply, making smart decisions and investing in key areas ! Though they do make most of their profit on AWS services...
So avoiding taxes via tax loop holes didn't play any role?
@@safakt3986 they can't avoid taxes. The IRS is on them as they have the biggest target on their back. They can't pay more than required as the IRS would just refund them the taxes like they do you
@@safakt3986 they pay roll taxes, y r u so bitter
Amazon is the most shady company in the U.S. They're like the mafia of the Internet but more successful, more aggressive and you will struggle to find dirt on them.
Amazon Web Servcies services is what you just said at the end of your comment
You want truckers? Pay us more
You want Wendy's? Pay them more.
@@meleejones tf you blabbering about
@@meleejones They can’t even get a simple order correct. They don’t deserve better pay.
@@meleejones some to most 18 wheeler's are manual transmission try leaving the lot in one of those if you know how to drive stick. Long travel distance without seeing your family, long drives, parking your 18 wheeler in tough spots knowing how to operate it is a more skilled job than flipping burgers buddy
Or get immigrants
It would be nice for some of that manufacturing to be done in the US.
It was born here. Our collective desire for the highest wages and the lowest retail costs drove away the jobs that made for a balanced economy.
You would think the higher cost of labor here in the states would now be offset by the shipping rates. The us should fully take advantage of this position.
Cant remeber exactly what company it was but they packed up and moved from china back to the US
@@JA-wb5my The shipping rates will go back down, the higher labor costs will only continue to go up. On top of that, you have to build the building, maintain it, pay property taxes, adhere to massive amounts of regulations, and so on and so on. This shipping problem is temporary, at least we think it is and it should be. Im not advocating for overseas manufacturing, just pointing things out.
It would be nice, but China is the top metal production in the world with the tech they have. We are unfortunately far behind in the production industry for metal.
I can appreciate Amazon’s swift efforts in applying a fix to this. 👍🏾
Flock Freight is doing exactly the idea mentioned at the end of the video; combining other shippers loads via Shared Truckloads so that more of a truck is utilized without sacrificing service.
I was fortunate to contribute to this story and have been following Amazon and their ocean freight programs for years. Amazon's ability to gain inroads with the small to moderately size Chinese factories has been one of the greatest untold stories.
True
Business with china is ew. Anything China made is cringe until the CCP is disbanded
F Amazon
what's really amazing to me is that this something to be proud of for you.. wow..
"Untold stories"?, I am sure we all know how that story goes, Amazon creates a deal with the chinese government in exchange for cheap labor. WOW so revolutionary!
Exactly, I've been saying this about the supply chain crisis all along. But there's always "experts" that know better. The purpose of smaller ships is to bypass congested ports.
No, no.. Its a trucker problem. And dock problem. Truckers don't want work and ports wont give work. (Joke)
The containers at ports are empty. Boats cant offload full containers. Ports are full.
People always like to make up conspiracy theories.
Rise of the monopolies. When the largest corporations get preferential federal and state treatment, when they can remain open and have their smaller competitors closed, GAME OVER.
I think it is fascinating to see how much Amazon has grown from 1994 to today. I learned a lot from this and I am thankful for CNBC to keep us informed. :-)
Amazon doing their thang! I mean, no matter how you feel about it or the owner, they are changing the game.. big time!
lol he said thang
Is they lose their price advantage they are finished .
Putting all industries on notice. Mad respect.
Why are people stupid?
A 24/7 operation is a MUST for a major port like Long Beach / L.A. It is also the reason, why Hamburg & Bremerhaven have cleared a similar backlog in the German Bight over this summer, despite having tidal windows for most deep-draught vessels and longer transit times from anchorage to the berth.
But nice to see, that Amazon inteds to trick the ocean shipping industry. That is exactly what is required to get the vessels moving efficiently through the ports again.
Agree with another reader's comments - NJ and Houston are small ports? Getting the backlog down will take effort across multiple fronts. 24x7 operation is fine for the busiest ports yet this is not a long-term solution (barely a short-term solution). The U.S. supply chain cannot continue to rely on Asia. It will be a crisis in waiting every decade until the next disaster comes along.
It is small compared to European and Asian ports. Rotterdam is 10x the size of NYNJ (yes, ten times). If you look at the list of the largest ports in the world, you have to scroll down far to find the first US Port.
Eventually we all will end up working for Amazon
Just swallowed my pride and applied to work for them.
@@maitlandnewton3841 I worked for Amazon as a temporary warehouse operative in the UK...and to be honest, it wasn’t as bad an experience as I have seen many claim! I actually enjoyed working there!
@@maitlandnewton3841 *letting you know ur not getting that sign on bonus thats a lie*
that movie wall-e is legit the future
@@BillyPhilipRwoth I'm a driver and for the most part i'm not stressed. However, all the Warehouse people at our station are hating their lives. I've never seen such a depressed group of individuals.
Good for Amazon. They identified the paint point and figured out a way to bypass it whilst the conventional shippers wait in line for overcrowded ports to be unloaded.
Q: How did Canadians decide to spell their country's name:
A: C, eh? N, eh? D, eh?
I've talked to truckers who go to LA ports They say the clog is the empty chassis. People are not moving them around like they should and they are taking up space. Hauling an empty chassis doesn't pay.
I ordered on Amazon the week of christmas assuming it wont arrive until after christmas but received a notification saying it will be delivered on christmas eve. To be able to achieve that type of speed and efficiency is pretty impressive and I dont even have prime.
Amazon is amazing... my country Indonesia has facing the same logistic problem, but instead of making a breakthrough like Amazon, the government and the business owners here just blame the Chinese for have an advantages in container orders, and put the burden on the customer. I hate them for making excuses for their failure.
How ironic life is, years ago Amazon was struggling to find a shipping company to deliver it's goods to it's customers, now is selling space on it's containers and planes. Soon it will be building it's own railroads, trains, ports, and ships. And all because a man had an idea and put it to work!
those private railroads, trains, ports, and ships will at the end be subsidized by tax payer money. So i wouldnt be happy about it.
Been delivering for Amazon for 3 years now, and in the beginning it was hard work but rewarding, now it’s gotten out of hand. They show compassion for workers concerns but do nothing about it when we list t the harsh working conditions.
This doesn't surprise me at all! Amazon keeps on growing and growing. They've thought of everything. There is a brand new Amazon warehouse just opened literally around the corner from where I live. Its insane! Very interesting video!
what they did with aws they did with their warehousing.
this is human kind at its peak. amazon team is doing amazing things. imagine if we had teams like this in government
We'd be in a socialist "utopia."
Supply chain chaos
Labour shortage
Record inflation
Bond tapering
Small business getting cannibalized
Looks like a recipe of disaster
Think more long term then short term.
dont forget about FED printing 40% of dollar in existence and also the debt limit (which will due in mid december)
@@armada70 Yes.
Containers first go to sort centers which divi up the product to fulfilment centers. At Stockton (SMF3, #1 in sort), we ship to over 43 fulfilment centers
a huge ploy that amazon uses is "your package will be delivered between the 5th and the 10th"
and it's always the 10th
I am very happy with Amazon's shopping experience.. they save me time shopping and getting products I can not find at local stores or would take me several hours to find and cost to get to stores.. I bought a replacement handle for my screen door. the price was about $7 and took about a day to get to me. One thing they could improve on is giving better pictures or video of items i am looking at. I presume they will eventually allow shoppers to see the items in VR and even virtually handle the items they are shopping for. I own shares in Amazon and I am feeling pretty good with my investment. I just wish i bought more when the price per share was under $2000 per share.
It also occurred to me that the shipping containers could be designed to be foldable? to save on space for transporting and storage when not in use?
Also, Amazon customer service has been pretty good to me. one concern i have is sometimes there are products i am considering but i really don't have enough info to make a good decision on which to buy. Sometimes i have to buy and take the chance if it will be what i need. And if not, I return it for refund.
Is that how they beat paying taxes too?
Amazing! This makes you realize how large a place has to e to house an operation such as this!
There’s a supply chain shortage on parts for fleet vehicles. Company I work for can’t acquire any new fleet vans right now due to part shortage causing production delays. But I still see whole trailer loads of new fleet vans being shipped in to the new Amazon warehouse in my city
There's no trucker shortage. To the contrary. Precisely the problem is that there is an oversupply of CDL A holders (because it's too easy to get one) so wages are low and load rates are low and it becomes a cycle of employers offering low wages because they want to offer cheap services knowing that all other companies offer similar wages and eventually some poor soul will take up the job... Also too many OOs on the road right now.
Do you know the restrictions of the Licenced Truckers authorize to drive in and out of California Ports its constricting for a regular LTL driver.
@@larryjohnson6400
I’d imagine just a Twic card?
@@dontdoxmebro $125.00 to $105.00 depends on if the load is or is not Hazardous Materials good for 5 years.
There only is a shortage because of drug testing and the requirement of a SS card or a greencard. If they ever let illegals drive, then there will be no jobs.
@@trentallman984 One year Michigan was giving out CDL License like candy. The road accidents from this activity increased 60% until they stoped giving them to just any individual.
I was wondering how I was getting all my Amozon stuff per usual. However it does make more sense for Amozon to do this than other companies since thier business is primarily e commerce they don't spend a lot of time warehousing products. It was a logical step exacerbated by the global pandemic which makes them look like geniuses. This is primarily a case of timing is everything.
Amazon logistics speed !!!But this middle also can not be separated from the supply chain third-party inspection company services, after all, the quality of the products purchased or the need to test. But there is a company that does a great job with its inspection services, AQI services.
Thank God for Amazon! Best way to fix the ridiculous issues at Long Beach and other busy ports is competition from less busy ports in Washington and other business friendly states. Keep up the good work Andy!
The effects of this shipping delay have greatly affected both the traffic in LA (which feels at times worse than before the pandemic due to the increased presence of the trucks on the major freeways) and the weather as well. There's been more foggy mornings/days than I've ever encountered at least the past decade with the AQI throughout the So Cal area worsening compared to past years. It sounds great that there's 24/7 ports open but it seems that there needs better efficiency in not only easing the burden in the ports themselves but in the weather and traffic in the metro area overall.
There is not “chaos” in the supply chain, problems yes, chaos no, the sensationalism is ridiculous.It’s actually amazing the whole thing works.
Amen. Clickbait doesn't get into realities such as the empty TEU pileup in the midwest at rail transloads which actually may be the true culprit and prime point of constraint in the backlog. No one thought much about the backhaul empties, it seems.
Thanks for all the detailed information you have provided in this video. I like your way of explaining every point. Keep sharing such great videos in the future also.
I've been getting all packages really quick. It's like there isn't any issues this year.
Your lucky, my packages usually take a week. They used to only take 2 days and that was the reason I originally subscribed to PRIME.
The solution to this problem is to move production to the U.S.. This creates jobs and wealth for Americans.
That will never happen
@@thisismarkbro I'll have to agree with you there. It's like when America, the colony, became the producer of goods for the European colonists and America became a wealthy country. So at some point when China surpasses America's economy (and the wealth that goes along with it) we're gonna be just another country begging to borrow more money or better yet print the money like we're doing now and we'll be paying for Chinese goods by the barrel.
This is a super informative video explaining challenges in the current supply chain situation, and why Amazon's stock price has gone through the roof!
I personally unloaded a container from the Uk last week. It was shipped July 30th 2021. It took almost 5 months to get to the US.
Amazon works because it has employees working 24/7. They even work during tornadoes, and crawl from the rubble when the work is done. All so you can get your package on time!!!
Verticalization at it's best
The truck driver shortage isn't real. What is real is that the average truck driver is currently paid ~40% less today than they were in the 1980s after adjusting for inflation. This will only be fixed once the willingness to pay of trucking companies corresponds with the marginal labor rate commanded by the volume of labor supply they seek.
Instead of raising pay, trucking companies keep perpetuating this narrative of a truck driver shortage, with the belief that it will convince regulators to allow self driving trucks.
U forget truck regulation in CA
I believe the the supposed worker shortage is B.S. my son works in a supermarket that is very short workers but they never hire any new workers.....they want the current workers to "work harder." They're fcking slave drivers.
@@jdenino6022 You're right. It's pretty much everywhere - even within Fortune 500 "rich" companies. They can't "FIND" qualified people.
I finished collage and decided to get my CDL....
After just a few months of dealing with th laws and regulation i quit and worked a pizza delivery driver...
lol make stupid laws, get stupid results
There are actually many trucker waiting on parts for truck repairs and cannot work till they get them.
Incredible less then 12 years and so effectively.. always mesmerized even Holliday season could not impact Amazon
Amazon on its way becmoing the next East Indian Company
Great metaphor!
"shared logistics" is what 3PL (third party logistics) companies have been doing for decades - this video seems to suggest this is some sort of new phenomenon. This is also the reason that most of logistics has and will continue to be outsourced - UPS / Fedex / DHL and the like do the job of combining demand in containers / ships / planes / trucks / warehouses which a company by itself cannot do
I work for a good size regional LTL freight company. I just work on the semis but I still get informed. My company just signed a deal to partner with full load companies so we can haul their full trailer loads. But we are already short on drivers, dock workers, mechanics, and not to mention we ordered 400 semis this year and seen 150 of them across the company. But Volvo can't build the other 250 without the parts from the container ships, can't get the containers without truck drivers and trucks. It's a circle. What the hire ups decided is we will strip our old 1million Mile semies and put those parts on the waiting volvos. Figured we can 1 semi and strip it and we can get 4 new ones on the road. It's a whole mess and we don't have enough old volvos to make it happen.
This is the best informative news reporting so far on the internet since the freight backlog started.
Will Amazon be broken up just like Ma Bell and Standard Oil were ?
Amazon wouldn't came this far without China supplier .
I don't mind not having to manufacture it hear as factories are very dirty, But this can't continue. It doesn't make sense
The big Corporation with access to corrupt politicians will not feel any different this is about hurting small businesses so places like Amazon , Walmart and target profit big and buy more properties
Exactly! All part of the plan to destroy small businesses, the middle class and transfer that wealth to the top 1%. The plan is working well for them so far. But it's not over yet.
A major oversight in the narrative - A huge part of the container traffic is carried on the BNSF southern transcon route from LA to Chicago. The container to Tulsa is probably going first to Chicago, and the contents being transloaded and consolidated with other products, then being transported by 53 ft trailer to Tulsa using JB Hunt, Schneider or Swift. You're not going to drag a 40 foot container on a chassis based in LA/LB 1,500 miles. The transloading might also occur in City of Commerce California into a 53 foot container, then put on a BNSF train to Texas, Salt Lake City or Canada
I'm not so sure that those smaller ships are emitting more carbon than the bigger container ships, because those bigger ships are stuck in ports and consuming fuel for 45+ days.
Maybe its time to stop ordering online for a while and buy at a local shop.
No going to happen today society is lazy and dumb as a box of rocks.
@@rickhammond2473 1000% true.
The US Needs More Bigger Port's On The East Coast
The east coast is where European and African goods show up. The chance you'd pay for the added panama canal fee for the small boats that can get through the canal without complaints is low. The issue is needing more ports on the west coast since train and truck to the other side of the US costs less than taking the boat around Panama
Most container ships waiting off LA are too big to get through the Panama Canal. To divert to the East Coast they’d need to travel around Cape Horn or through the Northwest Passage.
@@CarFreeSegnitz north west passage isn't viable yet
@@only1gameguru New Panamax ships are much larger than old Panamax ships since the canal was widened. It is common to see 13000 TEU ships in New York and 8000 TEU ships in Boston these days
They have been saying that for decades.
And people just ignored it.
It really is easy to compete when everyone else is forced to temporarily close stores!
sssh you might make the simps for Amazon mad.
Well there’s still excess boxes because the old ones can’t be used to ship after a certain number of years. So the repurposed containers aren’t new containers or containers that could be used for shipping.
Sears: nah, let's just do whatever we were doing for decades, no change.
Amazon: let's learn and control everything
All this because these American companies are too cheap to pay a living wage and have things built here 😂
no it's because you keep buying things at a low price, next time pay more!
@@johnames6430 Bezos net worth would disagree with you. 🥴
It’s consumers that’s not willing to pay more
Americans like cheap goods and high 401Ks. I don't think anyone objects to high pay.
@@orlenbrown4293 you keep choosing low prices, choose high prices and you would solve all these issues.
I have a crazy idea. Let's bring manufacturing back to the United States. Then we won't have to ship them halfway around the world to have the products here. Would probably even cut down on carbon emissions
He we own a plane and use only 25% of the space and fly around with it, I think we should ask if other companies need some space and they pay for it.
What do you think?
*OMFG* you are a genius....how can you be so smart?!?!
I’m so happy I don’t work in warehouse anymore. My feet are bleeding and throbbing at the thought of going back there
People are stupid for dealing with Amazon.Amazon is garbage
really enjoyed this shipping video
Amazon is outsmarting other companies. Good for them. Competition is good for everyone.
Amazing Insights, Amazon's quick-fire strategy put them eons ahead of the competition. Partnering with clean energy transport mediums completes the cycle. A definite investment for sure.