Amazon registers Chinese subsidiary for first foray into US$350 billion maritime shipping market
A large part of Amazon’s costs are related to shipping and deliveries, and by relying on third parties the company is at the mercy of others.
Amazon has taken the first steps to begin maritime shipping operations, adding to its already vast arsenal of logistical operations.
The company confirmed it had registered with the US Federal Maritime Commission to operate via a Chinese subsidiary Beijing Century Joyo Courier Service.
The news was first reported by the shipping blog Flexport, which called it “Amazon's first step toward entering the US$350 billion ocean freight market.”
By operating its own maritime shipping, Amazon could improve its ability to move goods into the company’s logistics network, the blog noted.
“We don’t have anything to share beyond confirming that the filing occurred,” Amazon spokeswoman Kelly Cheeseman said.
Amazon has already announced it hopes to be able to use drones to deliver goods to customers upon winning regulatory approval.
They have demonstrated with Amazon Web Services that they can take these very large risks and make them pay off