Amazon has registered to provide ocean freight services

The company could use automation to cut the labor cost of moving the goods by sea

A Chinese subsidiary of Amazon.com has registered to provide ocean freight services, a move that could help cut costs for Chinese companies looking to move products to U.S. markets, as well as give the retailer greater control over end-to-end delivery.

A listing of "Ocean Transportation Intermediaries" by the U.S. Federal Maritime Commission states that a business named Beijing Century Joyo Courier Service Co. Ltd, with the trade names Amazon China, Amazon.CN and Amazon Global Logistics China, was registered to provide ocean freight services.

Amazon said in 2004 in a regulatory filing it had entered into a definitive agreement to acquire Joyo.com, a British Virgin Islands company, which operates the joyo.com and joyo.com.cn websites in cooperation with Chinese subsidiaries and affiliates. The Joyo.com websites are the largest online retailers of books, music and videos in China, Amazon said at the time.

The listing on FMC, first noticed by Flexport, a logistics firm in San Francisco, could pave the way for Amazon to offer ocean freight services for other companies, particularly to Chinese companies, wrote Ryan Petersen, CEO of Flexport in a blog post.

Amazon offers a Fulfillment by Amazon service which offers to "pick, pack, ship, and provide customer service" for sellers' products. By offering ocean freight services, FBA could make it easier for its customers to move goods into the company’s logistics network, according to Petersen.

"Amazon China can provide freight forwarding services to Chinese companies looking to move products directly into FBA warehouses, or perhaps even by cross-docking the goods for direct injection into Amazon’s courier network," Petersen wrote.

Amazon could also use automation to further cut down costs in the ocean freight services business, which now has labor as a key cost, Petersen said. "At the same time, fulfilling products directly from China to consumers in the U.S. will cut handling costs at U.S. warehouses," he added.

Amazon did not immediately comment.

The company has been investing in higher control of end-to-end delivery, including planning to use drones to deliver parcels to customers, and hiring independent contractors to deliver packages through Amazon Flex, a program it has launched in some parts of the U.S. There have also been reports recently that the company is planning to lease jets to carry cargo and is also planning to acquire the 75 percent stake it still doesn't own in a French package-delivery company Colis Privé.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?