Amazon China subsidiary targets US with new freight forwarding operation

By Nye Longman
Having already made overtures towards establishing its own air freight division, online retail giant Amazon is now working towards operating its own oce...

Having already made overtures towards establishing its own air freight division, online retail giant Amazon is now working towards operating its own ocean freight business, following the registration of its China subsidiary to operate as a freight forwarder in the US.

According to reporting from the Federal Maritime Commission (FMC) Amazon China is now listed in the Ocean Transportation Intermediaries: a list of companies which are authorised to sell ocean freight services.

While this registration is certainly a very interesting and important development, there is no information as to when operations would begin. Since the global ocean freight market is valued at roughly $350 billion, it may prove wise to move with caution.

It goes without saying that China’s manufacturers will welcome this move, since it will improve access to America’s massive consumer-base. Amazon also plans to lease 20 Boeing 767 jets to expand its delivery operations; combined, these measures indicate the company’s desire to gain as much control of its supply chain as possible, with the added ability to further drive down costs.

Stay Connected! Follow @SupplyChainD and @MrNLon on Twitter. Like our Facebook Page.

Read the January Issue of Supply Chain Digital.

SOURCE: [IB Times]

Share

Featured Articles

Weekly global logistics news & views round-up

DPD's all-electric service to 10 UK towns; Indian logistics giant Delhivery patents addressing solution; Drewry predicts return to normal freight rates

Global turmoil leaves firms exposed to ESG risk, says LRQA

Paul Butcher, CEO of global assurance specialist LRQA, warns that ongoing supply disruption means firms must be on guard against ESG supply violations

Collaboration 'is key to sustainable supplier onboarding'

James Butcher, CEO of supplier collaboration platform Supply Pilot, on the key to engaging suppliers at pace and scale in a sustainable way

Walmart to roll out drone delivery to 4mn US households

Logistics

Accenture finds ESG divide between CEOs & procurement

Sustainability

McKinsey report urges firms to avoid ad hoc supply fixes

Supply Chain Risk Management