By Mari Saito

SAN FRANCISCO, Jan 14 (Reuters) – Amazon.com Inc’s China arm has registered as an ocean freight forwarder, based on the U.S. Federal Maritime Commission, a transfer that may give it extra management over transport merchandise from Chinese factories to U.S. customers.

The registration is the most recent indication that Amazon plans to broaden its logistics attain to chop prices for its retail enterprise and probably present third-party logistics providers to different industries.

Its new standing as a freight forwarder, or “non-vessel operating common carrier,” offers Amazon, the world’s largest on-line retailer, a foothold within the $350 billion a 12 months ocean freight enterprise. It won’t function ships however subcontract that work.

Amazon is already negotiating a deal to lease 20 jets to start out an air-delivery service within the United States, the Seattle Times reported final 12 months. The retailer purchased truck trailers so as to add transport capability and began a program final 12 months that makes use of a fleet of on-demand drivers to ship packages.

“It has more and more control over the supply chain of their business and it gives them the ability to squeeze (costs) even further,” stated Satish Jindel, a logistics marketing consultant and president of SJ Consulting Group.

He added the transfer offers Amazon an excellent greater edge towards conventional U.S. retailers in negotiating decrease costs for items.

The Federal Maritime Commission, a U.S. authorities company that regulates the U.S.-international ocean transportation system, stated on Thursday a enterprise named Beijing Century Joyo Courier Service Co Ltd, with the commerce names Amazon China, Amazon.CN and Amazon Global Logistics China, was registered in its database to supply ocean freight providers.

Amazon China submitted its registration request on Nov. 9, the fee stated Thursday, and it was reviewed and registered on Nov. 13. It is the entity’s first registration.

“Amazon’s ocean freight services will be far more attractive to Chinese sellers than to American buyers. Chinese suppliers would love direct access to Amazon’s vast American customer base,” wrote Ryan Petersen, chief govt officer of Flexport, a San Francisco-based freight forwarder who first wrote about Amazon’s registration on his firm weblog on Thursday.

Petersen added that Amazon’s third-party retailers had been unlikely to make use of its transport service as a result of it will expose key information like wholesale pricing and provider names to a rival.

An Amazon spokeswoman declined to remark. (Reporting by Mari Saito; Editing by Stephen R. Trousdale and Cynthia Osterman)

(c) Copyright Thomson Reuters 2016.