Amazon Now Moving Into Ocean Shipping - Global Trade Magazine
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  January 25th, 2016 | Written by

Amazon Now Moving Into Ocean Shipping

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  • Amazon’s registration as freight forwarder with the FMC will give the company more control over shipping.
  • Amazon’s registration with the FMC allows the etailer to book space on cargo vessels.
  • Amazon’s move into ocean shipping is but the latest foray into the transportation and logistics business.

A Chinese affiliate of Amazon.com has registered as an ocean freight forwarder with the U.S. Federal Maritime Commission, Bloomberg News has reported.

The move that will presumably give the online retailing giant more control over the shipment of products from Chinese factories to U.S. consumers.

The registration with the FMC provides the Amazon affiliate with the status of freight forwarder and non-vessel operating common carrier (NVOCC), both of which allow the etailer to book space on cargo vessels and potentially to provide those services to others.

This is but the latest indication that Amazon intends to enter the transportation and logistics business. Press reports have stated that Amazon is in talks to lease 20 Boeing 767 jets to launch its own air cargo wing and be less dependent on UPS, Fedex, and the postal service.

Some media outlets have also reported that Amazon conducted tests late last year of a potential air delivery system, centered in Wilmington, North Carolina, and that it directed its own flights during last year’s holiday shopping season between several European points.

Amazon has been decidedly mum about these reports, but a company spokesperson did tell Global Trade Daily that the FMC “the filing is accurate” before refusing any further comment.

Industry experts say Amazon’s status as an ocean transportation intermediary would allow the company to reduce its shipping costs from China to the U.S.