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Amazon China subsidiary targets US with new freight forwarding operation

Having already made overtures towards establishing its own air freight division, online retail giant Amazon is now working towards operating its own oce...

Nye Longman
|Jan 18|magazine4 min read

Having already made overtures towards establishing its own air freight division, online retail giant Amazon is now working towards operating its own ocean freight business, following the registration of its China subsidiary to operate as a freight forwarder in the US.

According to reporting from the Federal Maritime Commission (FMC) Amazon China is now listed in the Ocean Transportation Intermediaries: a list of companies which are authorised to sell ocean freight services.

While this registration is certainly a very interesting and important development, there is no information as to when operations would begin. Since the global ocean freight market is valued at roughly $350 billion, it may prove wise to move with caution.

It goes without saying that China’s manufacturers will welcome this move, since it will improve access to America’s massive consumer-base. Amazon also plans to lease 20 Boeing 767 jets to expand its delivery operations; combined, these measures indicate the company’s desire to gain as much control of its supply chain as possible, with the added ability to further drive down costs.

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SOURCE: [IB Times]