Dive Brief:
- Amazon has launched a new transportation option for businesses to move West Coast-based inventory to the East Coast faster, according to an announcement on Sept. 11.
- The service, called Standard Ocean Express, routes users’ goods "via the Los Angeles port with direct rail to our East Coast fulfillment centers," according to Amazon.
- Standard Ocean Express offers improved transit times compared to standard routing options, reducing out-of-stock risk during high demand periods and enabling faster availability for customers, the company said. The announcement did not disclose prices for the service or how they compare to other options.
Dive Insight:
Improving inventory availability and accelerating delivery speeds have been high priorities for Amazon in recent years, and Standard Ocean Express opens the door for sellers to get products positioned for East Coast customers sooner.
Standard Ocean Express is part of the Amazon Global Logistics umbrella of shipping capabilities, which include ocean and air freight services from China into the U.S., U.K., European Union and Japan, plus Vietnam-to-U.S. ocean shipping. Benefits of Standard Ocean Express include access to ocean rates displayed at the point of booking alongside estimated delivery windows so sellers "can balance speed and cost," Amazon said.
The new offering is specifically for Seller Managed Placement bookings, an Amazon Global Logistics service that ships products directly to regional cross-dock facilities to improve transit times and inventory distribution within Amazon's network.
Standard Ocean Express' launch comes as Amazon looks to attract businesses beyond those selling on its marketplace to use its logistics capabilities. Earlier this year, the e-commerce giant launched Amazon Supply Chain Services, a suite of capabilities including Amazon Global Logistics plus trucking, parcel shipping, bulk storage and other services. The company has also expanded its bulk storage capacity in China for U.S.-bound inventory.
Other logistics providers have been expanding their transportation services out of the key port city of Los Angeles, too. Last year, BNSF Railway launched a direct expedited rail service from Los Angeles to Houston, and teamed up with CSX to offer intermodal services from Los Angeles to several destinations in the eastern U.S.
