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amazon expands logistics reach with move into ocean shipping

by:VIPUTRANS     2020-04-29

According to the US Federal Maritime Commission, com Inc's Chinese department has registered as a marine freight forwarder, a move that will give it more control over shipping products from Chinese factories to American shoppers. 

This registration is the latest sign that Amazon plans to expand its logistics scope to reduce the cost of its retail business and potentially provide third-party services. 

A new identity as a freight forwarder, or non-Ships Operating Co-carriers" have helped Amazon, the world's largest online retailer, gain a foothold in its $350 billion shipping business every year. 

Instead of running ships, it subcontracted the work. Amazon is already negotiating an agreement to lease 20 jets to start air transportation. The Seattle Times reported last year that express delivery services in the United States. 

The retailer purchased truck trailers to increase transport capacity and launched a project using the fleet last year. The driver is requested to provide the package. It has more and more control over the supply chain of their business, which gives them the ability to squeeze (costs)

More importantly, said by satesh Jindel, logistics consultant and president of SJ Consulting Group. He added that the move gave Amazon a greater advantage in negotiating with traditional US retailers to lower commodity prices. 

The Federal Maritime Commission, the US government agency

The international maritime transport system said on Thursday that a company called Beijing Century Youyou Express Service Co. , Ltd.  was named Amazon China and Amazon. 

CN and Amazon Global Logistics China are registered in their database to provide shipping services. 

The Commission said on Thursday that Amazon China filed a registration application on November 9 and reviewed and registered on November 13. This is the first registration of the entity. Amazon's shipping service is much more attractive to Chinese sellers than to US buyers. 

Ryan Peterson, chief executive of Flexport in San Francisco, wrote: Chinese suppliers want to go directly to Amazon\'s huge US customer base --On Thursday, a freight forwarder first reported on Amazon\'s registration on his company blog. 

Peterson added that  It is unlikely that a third-party merchant will use its shipping service because it will disclose key data such as wholesale prices and supplier names to its competitors. A spokesman for Amazon declined to comment.                                

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