Amazon China starts ocean freight business
Print Edition
AMAZON.COM Inc’s China arm has registered as an ocean freight forwarder, according to the US Federal Maritime Commission, a move that will give it more control over shipping products from Chinese factories to US shoppers.
The registration is the latest indication that Amazon plans to expand its logistics reach to cut costs for its retail business and potentially provide third-party logistics services to other industries.
Its new status as a freight forwarder, or “non-vessel operating common carrier,” gives Amazon a foothold in the US$350 billion a year ocean freight business. It will not operate ships but subcontract that work.
Amazon is already negotiating a deal to lease 20 jets to start an air-delivery service in the United States, the Seattle Times reported last year. The retailer bought truck trailers to add shipping capacity and started a program last year that uses a fleet of on-demand drivers to deliver packages.
“It has more and more control over the supply chain of their business and it gives them the ability to squeeze (costs) even further,” said Satish Jindel, a logistics consultant and president of SJ Consulting Group.
He added that the move gives Amazon an even bigger edge against traditional US retailers in getting lower prices for goods.
The commission, a US government agency that regulates the US-international ocean transport system, said a business named Beijing Century Joyo Courier Service Co, with the trade names Amazon China, Amazon.CN and Amazon Global Logistics China, was registered in its database to provide ocean freight services.
Amazon China submitted its registration request on November 9, the commission said, and it was reviewed and registered on November 13. It is the entity’s first registration.
“Amazon’s ocean freight services will be far more attractive to Chinese sellers than to American buyers. Chinese suppliers would love direct access to Amazon’s vast American customer base,” wrote Ryan Petersen, CEO of Flexport, a San Francisco-based freight forwarder who first wrote about Amazon’s registration on his company blog on Thursday.
Petersen said Amazon’s third-party merchants were unlikely to use its shipping service because it would expose key data like supplier names to a rival.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
