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January 17, 2016

Amazon registers as freight forwarder in China

Amazon's Chinese arm has registered as an ocean freight forwarder for smoother transport of its products from China to the US.

Amazon

Amazon’s Chinese arm has registered as an ocean freight forwarder for smoother transport of its products from China to the US.

The e-commerce company submitted its registration request with the Federal Maritime Commission in November, to have a tighter grip over the shipment of end products to its consumers in the US.

The Federal Maritime Commission, the regulator for the US-international ocean transportation, has confirmed that an enterprise named Beijing Century Joyo Courier Service alias Amazon China, Amazon.CN and Amazon Global Logistics China, were registered in its database to provide ocean freight services.

The non-vessel operating common carrier status will allow Amazon to enter the $350bn-a-year ocean freight business, reported Reuters.

It is also expected to reduce the cost of retail business and enable the company to provide third-party logistics services. Amazon is likely to subcontract the freight operations.

"Chinese suppliers would love direct access to Amazon’s vast American customer base."

The company is also contemplating air-delivery service in the US with the deployment of 20 jets. Freight forwarder Flexport CEO Ryan Petersen was quoted by Reuters as saying: "Amazon’s ocean freight services will be far more attractive to Chinese sellers than to American buyers.

"Chinese suppliers would love direct access to Amazon’s vast American customer base."

Last month, the company unveiled the prototype of a drone that it intends to use for deliveries. The prototype, octocopter, can take off and land vertically and is equipped with ‘sense and avoid’ technology.

The drone can travel beyond 10 miles.


Image: An Amazon collection point in England. Photo: courtesy of Wikipedia.

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