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Amazon Sails Into the $350B Ocean Freight Market

Amazon Sails Into the $350B Ocean Freight Market

2016-01-15 14:12

The retailer's Chinese wing has registered as an ocean freight forwarder, a move that could give Amazon more control over shipping products from Chinese manufacturers to US shoppers.

Amazon is expanding its operation so that it doesn't just send items across the world, in the future the company may as well ship them. According to Reuters Amazon.com Inc's China arm has registered in the US to operate as an ocean freight forwarder.

A major part of the products made in Asia comes to the US by boat and the registration may indicate that Amazon plans to expand its logistics reach as the license also allows Amazon China to ship goods to the US by boat for other companies.

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Would Attract Chinese Suppliers

Ocean shipping might not be as flashy as drone deliveries but it's a $350 billion market, and when Alibaba is making its way into the US, it could be a way for Amazon to help chinese manufacturers to sell directly to American consumers.

– 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, says Ryan Petersen, chief executive officer of Flexport, a San Francisco-based freight forwarder that first spotted Amazon's registration.

Jimmy Andersson

Senior editor

Freelance journalist who have gone from covering sports to online retailing. Been writing about e-commerce for four years.

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