Amazon to move into $350 billion ocean shipping market

The Chinese wing of electronic commerce company Amazon has announced plans to enter the $350 billion ocean shipping market after being awarded a license by the Federal Maritime Commission (FMC) to operate as an ocean freight forwarder in the United States.

In a first, the FMC license allows Amazon China to legally be an ocean transport intermediary.

Under the license, Amazon will ship its own goods as well as ship goods to the United States for other companies.

However, according to The Verge, the grant of a license is just half the battle won for Amazon, and it may take months, or even years for the company to actually commence shipping operations to the United States.

Currently, ocean-bound shipping is cheap and delivering Amazon items directly into the retailers fulfilment centers across the United States is seen as an enticing prospect for Chinese firms.

By getting into ocean shipping, Amazon hopes to stay on top of the online retail game, which is getting increasingly competitive.

It is being said that Amazon's move into ocean-based shipping of its products could undercut Chinese retail behemoth Alibaba, which has been making inroads into the United States.

The objective is to allow manufacturers to sell directly to American consumers without the interference of a tortured delivery process.