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2/10/2016 11:15:00 AM Write a Letter to the Editor Write a letter to the Editor

Chinese License Aids Amazon's Push Toward Global Shipping

Amazon's China Project Dubbed 'Dragon Boat' photo by Tom Hilton/Flickr Inc. has received its Chinese shipping license, signaling the massive retailer is further along with its plans to become a transnational fulfillment and shipping company than previously realized.

Last month, it was revealed the Seattle-based company had gotten its license to act as a wholesaler for ocean container shipping from the U.S. Federal Maritime Commission on Nov. 13.

At the time, analysts cautioned Amazon couldn’t begin acting as a middleman for ocean freight until it had a similar license from China.

Now it appears Amazon was granted that license five months ago.

The Chinese Ministry of Commerce granted the license Sept. 17, said Steve Ferreira, CEO of Ocean Audit, a global ocean freight auditing and consulting firm based in Hartford, Connecticut.

The license was given under the name Beijing Century Joyo Courier Service Company Ltd., one of the trade names for Amazon China and Amazon Global Logistics China, according to documents posted on the Ministry of Commerce website.

Having licenses on both ends means Amazon now can buy space on shipping containers at wholesale rates and resell it at retail rates. A spokesperson for Amazon would not comment for this report.

This fits with news reported by Bloomberg News on Feb. 10 that Amazon was planning a possible global expansion of its Fulfillment by Amazon service, which does storage, packing and shipping for small, independent merchants who sell products on Amazon's website.

The project was dubbed "Dragon Boat," Bloomberg reported, citing 2013 documents.

Dragon boats are small, traditional Chinese paddle boats with decorative dragons on their prows. Races involving dragon boats powered by teams of rowers have been held in China for centuries and become popular in the West in the past 20 years.

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By Elizabeth Weise
USA Today


Distributed by Tribune Content Agency, LLC.

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