--- title: "Meaning & Key Takeaway of: In early 2016, Amazon was given a license…" description: "\"“In early 2016, Amazon was given a license by the Federal Maritime Commission to implement ocean freight services as an Ocean Transportation Intermedia..." image: "https://sms4smile.com/quotes/i/e5a/scott-galloway-23280_dirty-business_in-early-2016-amazon-was-given-a-license_1595565.jpg" --- # In early 2016, Amazon was given a license by the Federal… ![“In early 2016, Amazon was given a license by the Federal Maritime Commission to implement ocean freight services as an Ocean Transportation Intermediary. So, Amazon can now ship others’ goods. This new service, dubbed Fulfillment by Amazon (FBA), won’t do much directly for individual consumers…” quote by Scott Galloway](https://sms4smile.com/quotes/i/e5a/scott-galloway-23280_dirty-business_in-early-2016-amazon-was-given-a-license_1595565.jpg) [Download](https://sms4smile.com/quotes/i/e5a/scott-galloway-23280_dirty-business_in-early-2016-amazon-was-given-a-license_1595565.jpg) [Open image](https://sms4smile.com/quotes/i/e5a/scott-galloway-23280_dirty-business_in-early-2016-amazon-was-given-a-license_1595565.jpg) > ““In early 2016, Amazon was given a license by the Federal Maritime Commission to implement ocean freight services as an Ocean Transportation Intermediary. So, Amazon can now ship others’ goods. This new service, dubbed Fulfillment by Amazon (FBA), won’t do much directly for individual consumers. But it will allow Amazon’s Chinese partners to more easily and cost-effectively get their products across the Pacific in containers. Want to bet how long it will take Amazon to dominate the oceanic transport business? 67 The market to ship stuff (mostly) across the Pacific is a $ 350 billion business, but a low-margin one. Shippers charge $ 1,300 to ship a forty-foot container holding up to 10,000 units of product (13 cents per unit, or just under $ 10 to deliver a flatscreen TV). It’s a down-and-dirty business, unless you’re Amazon. The biggest component of that cost comes from labor: unloading and loading the ships and the paperwork. Amazon can deploy hardware (robotics) and software to reduce these costs. Combined with the company’s fledgling aircraft fleet, this could prove another huge business for Amazon. 68 Between drones, 757/ 767s, tractor trailers, trans-Pacific shipping, and retired military generals (no joke) who oversaw the world’s most complex logistics operations (try supplying submarines and aircraft carriers that don’t surface or dock more than once every six months), Amazon is building the most robust logistics infrastructure in history. If you’re like me, this can only leave you in awe: I can’t even make sure I have Gatorade in the fridge when I need it.”” [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Amazon’s entry into ocean freight leverages its logistics tech to cut costs, threatening traditional low‑margin shipping firms. **In simple terms:** Amazon may dominate cheap shipping by automating labor and using its fleet. Key Takeaway Watch how tech can reshape a $350 billion market. Themes logistics technology competition economics automation Mood optimistic analytical cautious Type business strategic forecasting When to use this quote - import/export businesses - e‑commerce sellers - freight forwarders - retail supply chains Key Concepts supply chain optimization economies of scale disruption Questions to Reflect On - How will traditional shippers respond? - What risks does Amazon face in scaling ocean logistics? A Different Perspective Amazon still faces regulatory hurdles and entrenched industry relationships. ★ ★ ★ ★ ★ No ratings yet [Dirty business](https://sms4smile.com/quotes/about/dirty-business/) [Military general](https://sms4smile.com/quotes/about/military-general/) ## Related quotes > [“In 1961, before the container was in international use, ocean freight costs alone accounted for 12 percent of the value of U.S. exports and…](https://sms4smile.com/quotes/marc-levinson/in-1961-before-the-container-was-in-international-use-ocean-freight/) Marc Levinson > [I'm not a military general, a business guru, not a philosopher or author. It's only me.](https://sms4smile.com/quotes/vin-scully/i-m-not-a-military-general-a-business-guru-not-a-philosopher-or/) [Vin Scully](https://sms4smile.com/quotes/author/vin-scully/) > [Can there be allowed - are we allowed to have any more in the military, General, the element of surprise? You know, I would…](https://sms4smile.com/quotes/donald-trump/can-there-be-allowed-are-we-allowed-to-have-any-more-in-the-military/) [Donald Trump](https://sms4smile.com/quotes/author/donald-trump/) > [A soldier is he whose blood makes the glory of the general.](https://sms4smile.com/quotes/henry-george-bohn/a-soldier-is-he-whose-blood-makes-the-glory-of-the-general/) [Henry George Bohn](https://sms4smile.com/quotes/author/henry-george-bohn/) > [Wars may be fought with weapons, but they are won by men.](https://sms4smile.com/quotes/george-s-patton/wars-may-be-fought-with-weapons-but-they-are-won-by-men/) [George S. 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War…](https://sms4smile.com/quotes/brian-azzarello/if-you-read-any-sort-of-like-military-general-autobiographies-or/) [Brian Azzarello](https://sms4smile.com/quotes/author/brian-azzarello/) > [A good solution applied with vigor now is better than a perfect solution applied ten minutes later.](https://sms4smile.com/quotes/george-s-patton/a-good-solution-applied-with-vigor-now-is-better-than-a-perfect-2/) [George S. Patton](https://sms4smile.com/quotes/author/george-s-patton/) > [There is only one tactical principle which is not subject to change. It is to use the means at hand to inflict the maximum…](https://sms4smile.com/quotes/george-s-patton/there-is-only-one-tactical-principle-which-is-not-subject-to-change-2/) [George S. Patton](https://sms4smile.com/quotes/author/george-s-patton/) > [We want to get the hell over there. 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It’s what the most valuable…](https://sms4smile.com/quotes/scott-galloway/three-platforms-amazon-google-and-facebook-registering-iterating-and/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“One way to appreciate the brilliance of this acquisition is to look at Instagram’s “Power Index,” the number of people a platform reaches times…](https://sms4smile.com/quotes/scott-galloway/one-way-to-appreciate-the-brilliance-of-this-acquisition-is-to-look/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“No one has been able to aggregate more intention data on what consumers like than Google. Google not only sees you coming, but sees…](https://sms4smile.com/quotes/scott-galloway/no-one-has-been-able-to-aggregate-more-intention-data-on-what/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“and it gets its content, similar to Google, from its users. 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There is no evidence…](https://sms4smile.com/quotes/scott-galloway/the-process-is-the-message-if-you-survive-you-are-among-the-elite-the/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“My experience in traditional firms is that anything new is seen as innovative, and the people assigned to it, like any parent, become irrationally…](https://sms4smile.com/quotes/scott-galloway/my-experience-in-traditional-firms-is-that-anything-new-is-seen-as/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“luxury is irrational, which makes it the best business in the world. In 2016 Estée Lauder was worth more than the world’s largest communications…](https://sms4smile.com/quotes/scott-galloway/luxury-is-irrational-which-makes-it-the-best-business-in-the-world-in/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“Booking travel the same day? You must be a business traveler, please - bend over.”](https://sms4smile.com/quotes/scott-galloway/booking-travel-the-same-day-you-must-be-a-business-traveler-please/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“told Nike that to have a shot at a trillion, they would need to do three things: Increase percentage of direct-to-consumer retail to 40…](https://sms4smile.com/quotes/scott-galloway/told-nike-that-to-have-a-shot-at-a-trillion-they-would-need-to-do/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) > [“Facebook gestates intent better than any promotion or advertising channel. Once in pursuit, we go to Google or Amazon to see where to get…](https://sms4smile.com/quotes/scott-galloway/facebook-gestates-intent-better-than-any-promotion-or-advertising/) [Scott Galloway](https://sms4smile.com/quotes/author/scott-galloway/) [Explore all 26 Scott Galloway quotes ](https://sms4smile.com/quotes/author/scott-galloway/) ## More Amazon quotes > [“If Amazon’s dream of a world without gatekeepers becomes reality, then the company itself will become a powerful gatekeeper.”](https://sms4smile.com/quotes/evgeny-morozov/if-amazon-s-dream-of-a-world-without-gatekeepers-becomes-reality-then/) [Evgeny Morozov](https://sms4smile.com/quotes/author/evgeny-morozov/) > [“There was little science to Amazon’s earliest distribution methods. The company held no inventory itself at first. When a customer bought a book, Amazon…](https://sms4smile.com/quotes/brad-stone/there-was-little-science-to-amazon-s-earliest-distribution-methods/) [Brad Stone](https://sms4smile.com/quotes/author/brad-stone/) > [I don't know anything about Amazon's culture; I've never worked there.](https://sms4smile.com/quotes/parker-conrad/i-don-t-know-anything-about-amazon-s-culture-i-ve-never-worked-there/) [Parker Conrad](https://sms4smile.com/quotes/author/parker-conrad/) > [“A responsible woman doesn’t see opportunities and needs and look the other way pretending not to see them rather she gets to work to…](https://sms4smile.com/quotes/agu-jaachynma-n-e/a-responsible-woman-doesn-t-see-opportunities-and-needs-and-look-the/) [Agu Jaachynma N.E](https://sms4smile.com/quotes/author/agu-jaachynma-n-e/) > [“Jeff Bezos is famous for his “2 Pizza Rule” at Amazon: no meeting is to take place if the number of participants is too…](https://sms4smile.com/quotes/david-l-rogers/jeff-bezos-is-famous-for-his-2-pizza-rule-at-amazon-no-meeting-is-to/) [David L Rogers](https://sms4smile.com/quotes/author/david-l-rogers/) > [“The first week after the official launch, they took $12,000 in orders and shipped $846 worth of books, according to Eric Dillon, one of…](https://sms4smile.com/quotes/brad-stone/the-first-week-after-the-official-launch-they-took-12-000-in-orders/) [Brad Stone](https://sms4smile.com/quotes/author/brad-stone/) > [“ Programs has a temporary results leading to nothingness, and the Gospel the brings the result of Eternal life.”](https://sms4smile.com/quotes/tommie-scott/programs-has-a-temporary-results-leading-to-nothingness-and-the/) Tommie Scott > [The digital revolution is forever. They put importance on that option as well. With Amazon, you're getting the best of both worlds, with a…](https://sms4smile.com/quotes/nicolas-winding-refn/the-digital-revolution-is-forever-they-put-importance-on-that-option/) [Nicolas Winding Refn](https://sms4smile.com/quotes/author/nicolas-winding-refn/) > [The next time you're looking at a charity, don't ask about the rate of their overhead; ask about the scale of their dreams -…](https://sms4smile.com/quotes/dan-pallotta/the-next-time-you-re-looking-at-a-charity-don-t-ask-about-the-rate-of-2/) [Dan Pallotta](https://sms4smile.com/quotes/author/dan-pallotta/) > [“Sure we do," said Theo, swatting at a branch. "We get to the spring, Alia gets cured. We argue over the best choice for…](https://sms4smile.com/quotes/leigh-bardugo/sure-we-do-said-theo-swatting-at-a-branch-we-get-to-the-spring-alia/) [Leigh Bardugo](https://sms4smile.com/quotes/author/leigh-bardugo/) > [Wonder Woman isn't even American; she's an Amazon princess.](https://sms4smile.com/quotes/jim-lee/wonder-woman-isn-t-even-american-she-s-an-amazon-princess/) [Jim Lee](https://sms4smile.com/quotes/author/jim-lee/) > [Alternative services would mean that there would be services available to compete with Google, Facebook, Amazon, Dropbox, Skype, etc., and they would be run…](https://sms4smile.com/quotes/mikko-hypponen/alternative-services-would-mean-that-there-would-be-services/) [Mikko Hypponen](https://sms4smile.com/quotes/author/mikko-hypponen/) > [“I'd disagree with the characterisations of him as competitive (which I think was just misinterpretation of his ambition) or secretive (which I think is…](https://sms4smile.com/quotes/richard-brandt/i-d-disagree-with-the-characterisations-of-him-as-competitive-which-i/) [Richard Brandt](https://sms4smile.com/quotes/author/richard-brandt/) > [We got latched together and I was hoping you could separate us? (Amanda) They were made by your stepfather. Any chance you have a…](https://sms4smile.com/quotes/sherrilyn-kenyon/we-got-latched-together-and-i-was-hoping-you-could-separate-us-amanda/) [Sherrilyn Kenyon](https://sms4smile.com/quotes/author/sherrilyn-kenyon/) > [I don't like Amazon (wearing my author hat, not my customer hat).](https://sms4smile.com/quotes/charles-stross/i-don-t-like-amazon-wearing-my-author-hat-not-my-customer-hat/) [Charles Stross](https://sms4smile.com/quotes/author/charles-stross/) Browse all 434 Amazon quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“In early 2016, Amazon was given a license by the Federal Maritime Commission to implement ocean freight services as an Ocean Transportation Intermediary. So, Amazon can now ship others’ goods. This new service, dubbed Fulfillment by Amazon (FBA), won’t do much directly for individual consumers. But it will allow Amazon’s Chinese partners to more easily and cost-effectively get their products across the Pacific in containers. Want to bet how long it will take Amazon to dominate the oceanic transport business? 67 The market to ship stuff (mostly) across the Pacific is a $ 350 billion business, but a low-margin one. Shippers charge $ 1,300 to ship a forty-foot container holding up to 10,000 units of product (13 cents per unit, or just under $ 10 to deliver a flatscreen TV). It’s a down-and-dirty business, unless you’re Amazon. The biggest component of that cost comes from labor: unloading and loading the ships and the paperwork. Amazon can deploy hardware (robotics) and software to reduce these costs. Combined with the company’s fledgling aircraft fleet, this could prove another huge business for Amazon. 68 Between drones, 757/ 767s, tractor trailers, trans-Pacific shipping, and retired military generals (no joke) who oversaw the world’s most complex logistics operations (try supplying submarines and aircraft carriers that don’t surface or dock more than once every six months), Amazon is building the most robust logistics infrastructure in history. 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