Amazon has registered as an ocean freight forwarder, which is the latest indication that the web retail giant intents to expand its logistic base in order to cut costs for its own retail business, while perhaps offering third party services to other industries.
Amazon’s new status as a non-vessel operating common carrier will give it a foothold in the vast $350 billion ocean freight trade. This move follows quickly in the steps of Amazon’s acquisition of 20 jets for freight delivery in the US as well as the move to acquire truck trailers and initiate a program of on-demand drivers to deliver packages.
The US government agency that regulates the U.S.-international ocean transportation system - The Federal Maritime Commission - stated that Amazon China, amongst other Amazon China business entities, was registered in its database to provide ocean freight services.
Amazon China submission was reviewed and registered on 13 Nov. 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," said Ryan Petersen, chief executive officer of San Francisco-based freight forwarder Flexport, who first wrote about Amazon's registration on his company blog on Thursday.
Though Petersen did remark that Amazon’s hopes of building up a third party freight service were probably unlikely as this would expose competitors wholesale pricing and suppliers contact details to a major competitor.
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