Amazon steps into ocean freight

Author without image icon
Editorial
22 January 2016
2 min

US retailer Amazon has indicated it wants to invest in cargo ships. The company is doing this in addition to the investments it has already made in airline and cargo delivery. Amazon's Chinese subsidiary would be used for the new investments because, in principle, that arm is also allowed to act for third parties.

Beijing Century Joyo Courier Service Co Ltd, the subsidiary called Amazon China and Amazon Global Logistics China for short, now has a licence to act as an intermediary for cargo transport by sea. The company is not allowed to transport cargo itself, but the licence makes it easier for Amazon China to arrange cargo. This can be for Amazon itself or for third parties.

The US arm of the company could benefit again by making shipping goods from China to the US a lot easier.

Investing in planes
Cargo air travel also has Amazon's interest. The e-commerce company is negotiating with aircraft manufacturer Boeing for the delivery of twenty 767 planes. Amazon is thus trying to gain more control over cargo transport by air.

More and more alternatives
Because Amazon too has to watch costs and is always looking for new ways to get parcels to customers, it was announced back in 2015 thatindividualsworking for Amazon. By using their own car, individuals can easily act as parcel carriers. That branch was named Amazon Flex. The delivery time of parcels is thereby greatly reduced.

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