Could online retailer Amazon.com’s supposed plans to extend its logistics reach be a game changer for the express parcel industry worldwide?
Reuters news agency reported on Monday that Amazon.com’s China arm had registered as an ocean freight forwarder. This would potentially give the company more control over shipping products from Chinese factories to the US market, according to US freight forwarders.
Reuters noted that the registration was the latest indication that Amazon planned to expand its logistics reach to cut costs for its retail business and potentially provide third-party logistics services to other industries.
Maritime news site Port Technology reported that Amazon had made the move via its China department, which was now listed amongst the Ocean Transportation Intermediaries (companies authorised in the US to sell ocean freight services).
The news site quoted Ryan Petersen, CEO of the San Francisco-based freight forwarding company, as saying: "Amazon China now has the appropriate paperwork to provide ocean freight services for other companies. This is the company’s first step toward entering the $350bn ocean freight market.”
He added that Amazon's ocean freight services would be more attractive to Chinese sellers than to American buyers. “Chinese suppliers would love direct access to Amazon's vast American customer base,” Petersen was quoted as saying.
According to the Seattle Times, Amazon is also negotiating a deal to lease 20 jets to start an air-delivery service in the US.
