Walmart is now giving sellers on its online marketplace access to its port-to-door ocean freight network, enabling them to ship end-to-end directly from China to U.S. consumers.
Currently, Walmart Cross Border service is available to partner merchants who manufacture or source their goods in China and can deliver full container loads to certain U.S. ports. Walmart offers the service from three of the country’s largest ports – Yantian, Shanghai and Ningbo.
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Once the containers are shipped from ports of origin in China and cleared U.S. Customs, Walmart transports the goods to its fulfillment centers. Standard-sized goods are distributed to fulfillment centers near customers across the country, while oversized goods are shipped directly from the destination.
Scott Humanek, senior director of Walmart’s global inbound program, announced the Cross Border program in a LinkedIn post on August 8. This program is designed to allow sellers to use Walmart Fulfillment Services (WFS) and Marketplace to transport products from the originating factory into Walmart’s national logistics network. Under the WFS program, sellers can offer a two-day delivery guarantee for all items they sell.
“As part of this release, we became discoverable and widely available to all WFS sellers,” Humanek said in the post. “We couldn’t be more excited to help drive value, convenience, speed and reliability for ocean transportation. Our pilot has exceeded our expectations in terms of feedback and volume.”
It’s unclear when the pilot was originally launched and how many sellers participated in the program. The company has not disclosed whether it plans to expand the program outside of China.
Sourcing Journal contacted Humanek.
Walmart’s move has been several years in the making, beginning during the Covid-19 pandemic. The Bentonville giant chartered the first ships in mid-2021 to avoid stockpiling in the third and fourth quarters, when e-commerce orders soared.
The company then registered a subsidiary with the Federal Maritime Commission called WMSC Logistics Services, LLC in 2022. The subsidiary has been providing ocean freight services to Non-Vessel Operating Common Carriers (NVOCC) since October 2023, when it handled its first shipment to the United States.
According to Panjiva, the supply chain research division of S&P Global Market Intelligence, the Walmart-owned carrier handled a total of 893 shipments between October 2023 and July 2024, totaling 1,988 20-foot standard containers (TEUs) during that period. The service uses only two U.S. ports – the San Pedro Bay Ports of Long Beach and Los Angeles.
According to Panjiva data, 78 companies have so far shipped goods through Walmart’s service.
As global supply chain congestion increases dramatically throughout 2024, similar to 2021 and 2022, and more retailers move their products forward in the summer, Walmart is meeting the needs of smaller businesses that would likely struggle to secure cargo space with major shipping lines.
In addition, these SMBs often have to secure space through the spot market, as they typically do not bring in enough freight to justify a longer-term pricing model. However, with the WCB program, Marketplace sellers could take advantage of Walmart’s negotiated contract prices, giving them a more stable option than if they rely on a one- or three-month spot contract.
Sellers using this service will have access to Walmart’s negotiated ocean freight rates for 20-foot, 40-foot and 45-foot high cube containers.
The program is designed for ease of use, and the retail giant also offers options for customs clearance assistance from the company’s preferred customs broker.
The Walmart Seller Center portal allows sellers to estimate the cost of inbound ocean freight shipments, book a shipment 10 days before the estimated ready-to-ship date, print WFS box labels after booking a shipment, and view the inventory status of shipments.
Under normal market conditions, Walmart estimates it will take 27 to 38 calendar days between the cargo readiness date and the time the first items are available for sale. This estimate includes 14 days from the booking date to departure from the origin, 19 days on the water, and five days at the Port of Los Angeles. After that, cargo should take two days to receive at the consolidation center and five days to onload at WFS facilities across the U.S.
The latest expansion of Walmart’s marketplace and WFS comes as the company continues to look to add new services that compete with Amazon, attract more third-party brands and reach new shoppers.
Walmart will announce its earnings on Thursday morning.
