Amazon plans ocean shipping foray

Global retail giant Amazon.com Inc has registered to provide ocean freight services through its Chinese unit, a move that will give it more control over shipping products from Chinese factories to shoppers in the United States.

Amazon China has submitted an application to the US Federal Maritime Commission, sources said, adding that the company has sought a non-vessel operational license, indicating that it will not buy or own fleet. Instead, the company will subcontract the business to shipping companies.

Once Amazon obtains this license, it will be able to deliver the goods produced in China to US companies and consumers directly, skipping the intermediaries. Industry sources, however, said that such a move will hurt the profits of distributors and disrupt their business models.