Amazon as Freight Forwarder
Posted on April 26th, 2017

Amazon is under pressure from Wall Street to reduce its shipping costs, Reuters reports, and recent filings in China and the United States suggest one avenue it may pursue to bring those costs down. Those filings include:
  • Registering its Chinese subsidiary, Beijing Century Joyo Courier Service, as a freight forwarder with China's transport ministry last year, allowing it to export cargo out of the country. (A freight forwarder does not own ships but handles customs and other documentation.)
  • A similar application by the subsidiary with the U.S. Federal Maritime Commission in November.
  • An application with the Shanghai Shipping Exchange to serve as a shipping broker for 12 trade routes, including Shanghai to Los Angeles and Shanghai to Hamburg, Germany.
According to the Reuters report, analysts suggest Amazon’s freight forwarder license will make it easier for Chinese merchants and manufacturers to transport their goods to major Amazon hubs.

To read the full Reuters story, click here.

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