Amazon Now Registered as Ocean Freight Forwarder

Amazon Now Registered as Ocean Freight Forwarder

As a "non-vessel operating common carrier," Amazon will now have a piece of the $350 billion a year ocean freight business.

According to the U.S. Federal Maritime Commission the Chinese arm of Amazon has registered as an ocean freight forwarder.

As reported by Reuters, this will give Amazon more control over shipping products from Chinese factories to U.S. shoppers.

As a "non-vessel operating common carrier," Amazon will now have a piece of the $350 billion a year ocean freight business.

This move coupled with the company’s deal to lease 20 jets to start an air-delivery service, and the truck trailers it has purchased to adding shipping capacity, puts the company in a position to have more control of their supply chain.

This control could give Amazon the " ability to squeeze (costs) even further," said Satish Jindel, a logistics consultant and president of SJ Consulting Group, as reported by Reuters. 

He added the move gives Amazon an even bigger edge against traditional U.S. retailers in negotiating lower prices for goods.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish