The delivery of bioavailable iron (Fe) to the marine environment has important implications for marine biogeochemical cycling. However, only limited studies have explored the transportation and transformation of sediment Fe in oxic open marginal seas. In this study, we compiled and analyzed newly measured and published Fe speciation data for sediments in the northern South China Sea. The expected FeT/Al ratio of marine sediment calculated from river discharge is consistent with the measured one. This indicates limited estuarine trap removal occurred during the seaward input of riverine particulate Fe. However, the proportion of Fe oxides within the total Fe pool (Feox/FeT) in offshore sediments (0.28 ± 0.03) is lower than that in source river particulates (>0.38). We propose that the transformation of Fe oxides into authigenic Fe-bearing clay minerals during reverse weathering may be the best explanation. Furthermore, the Feox/FeT ratios in sediments increase from shelf to basin and have a good positive correlation with the contents of fine-grained fraction (<4 μm). We argue that this redistribution of reactive Fe oxides from shelf to basin is mainly controlled by physical shuttle (sorting). In addition, the Fe speciation of deep (>50 cmbsf) sediments in the northern South China Sea is influenced by diagenesis. We conclude that, unlike the low-O2 continental margins, the oxic northern South China Sea mainly serves as an Fe sink.