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Amazon Takes To The Sea

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Amazon Takes To The Sea
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E-commerce giant Amazon.com, Inc. (NASDAQ: AMZN) is on a mission to improve margins by cutting down on shipping costs; and this week proved that the firm is serious about taking control of its own logistics. The company is now registered with the federal agency that oversees ocean transportation, according to the Wall Street Journal, meaning that the firm could soon be able to move products between the United States and abroad by boat.

Freight Forwarding

Amazon is likely to use its new registration in order to move products in or out of the United States, a service called freight forwarding. Many are expecting Chinese firms to be eager to work together with Amazon to use the service, though it is unclear when Amazon is planning to establish any kind of freight forwarding business.

Related Link: Is Wireless The New Cable?

A Lucrative Space

At the moment, freight forwarding is a $160 billion market with very few established players. Several startups have begun creating modernized freight forwarding services in order to fill the gap, and many believe that Amazon could take over as a major competitor. However, according to startup Flexport, establishing a freight forwarding business will likely take the retailer several years.

Getting Serious

Amazon's efforts to set up a maritime transport service reflect the company's dedication to taking control of its shipping options. The firm has also been considering leasing its own cargo planes and has already set up new ways to offer ground transport without involving logistics companies like FedEx Corporation (NYSE: FDX) or United Parcel Service, Inc. (NYSE: UPS).

Between a new fleet of branded semi-trucks and experimentation with delivery drones, Amazon's latest decision to consider maritime shipments should come as no surprise.

Image Credit: Public Domain

Posted-In: e-commerce FlexportLong Ideas News Global Markets Tech Trading Ideas Best of Benzinga

 

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