Friday, January 15

Amazon gets permission to subcontract freight ships from China to the US

This week, Amazon China registered to become an “ocean freight forwarder” with the United States Federal Maritime Commission. That means Amazon, one of the largest online retailers in the world, would be able to subcontract companies to ship goods from China to the US.

Because this registration allows Amazon to sell shipment services, Reuters suggests that Amazon might be looking into providing logistics services for third-party companies.

A blog post by freight forwarding company Flexport notes it’s likely that Amazon China filed for this freight contracting registration because Chinese sellers are more enthusiastic about finding American buyers than American sellers are about finding Chinese buyers right now. In addition, American companies shipping to China wouldn’t want to share shipping data and wholesale prices with Amazon, since the company is viewed as a fierce competitor. But for Chinese companies, Amazon is less of a threat, and a freight service provided by Amazon might help them minimize costs when shipping abroad.

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