Amazon Receives NVOCC License
Amazon may be moving toward offering non-vessel operating common carrier (NVOCC) services, said Flexport, a logistics company, on its blog (here). "Flexport has obtained information that Amazon China has received a license to operate as an ocean freight forwarder" in the U.S, said company CEO Ryan Petersen. Peterson pointed to the Federal Maritime Commission's directory of Ocean Transportation Intermediaries, which has a listing for "Beijing Century JOYO Courier Service Co. Ltd, with the trade name “Amazon China” on the license, said Petersen. Amazon bought JOYO in 2004, he said. "This is a smart and long overdue move for the company," said Petersen. "By offering ocean freight services, Fulfillment by Amazon (FBA) will make it easier for its customers to move goods into the company’s logistics network."
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Providing such service through Amazon China, rather than Amazon itself, may make sense because "freight services will be far more attractive to Chinese sellers than to American buyers" and "Chinese suppliers would love direct access to Amazon’s vast American customer base," he said. Petersen also notes that the FMC license marks only an early step toward beginning actual operations. The news of the FMC license follows recent reports from The Wall Street Journal (here) and others that Amazon will provide its own air cargo logistics operations. An Amazon spokeswoman confirmed the accuracy of the FMC filing, but declined to comment further.