The registration becomes the latest indication the online e-commerce giant is planning to expand its reach logistically to cut its costs for its business of retail and potentially provide logistics services that are third party to other industries.
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Amazon has registered to be able to operate as a freight forwarder, essentially meaning that the company can now ship packages from China to the US on its own, without having to rely on other shipping companies. The e-tailer’s subsidiary in China has been registered by the Federal Maritime Commission (FMC) as an ocean freight forwarder.
Registered in 2004 by Amazon founder Jeff Bezos as Beijing Century Joyo Courier Service Ltd, the FMC directory lists its trade name as Amazon China, and its status as a registered OTI means it can book container slots for both Chinese manufacturers exporting to the USA, as well as USA retail importers.
The Seattle Times reported previous year that in the United States, Amazonis already conveyinga deal to lease 20 jetsto start an air-delivery service.
All in all, the report suggests that this is a good move on Amazon’s part, and the best time to join the shipping business with prices at a low point.
Amazon (AMZN) after making its moves in to air freight and trucking, appears to be turning its thoughts to the sea.
Amazon China submitted its registration request on November 9 a year ago, submitting various documents and posting a bond, the commission said on Thursday.
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“Amazon China can provide freight forwarding services to Chinese companies looking to move products directly into FBA warehouses, or perhaps even by cross-docking the goods for direct injection into Amazon’s courier network”, Petersen wrote. It is the entity’s first registration. That’s because they’re unlikely to be willing to give Amazon, a rival retailer, the kind of information that an ocean freight company would be privy to, Petersen said. This is primarily because China is a manufacturing hub, with sellers wanting greater access to a global consumer base, particularly the US.
