Amazon launches freight brokerage business
Close
Login to Your Account
Results 1 to 6 of 6
  1. #1
    Join Date
    Mar 2014
    Country
    UNITED STATES
    State/Province
    Michigan
    Posts
    436
    Post Thanks / Like
    Likes (Given)
    81
    Likes (Received)
    224

    Default Amazon launches freight brokerage business

    I heard a couple years ago that Amazon was preparing to enter the freight brokerage business. It seems like an antiquated industry rife for disruption.

    Are you happy with that industry and the way it functions today?


    Amazon's digital freight brokerage platform goes live
    April 26, 2019 John Paul Hampstead

    Breaking: Amazon's digital freight brokerage platform goes live — FreightWaves

    Today, freight brokers and carriers worst nightmare has come true: Amazon has quietly taken its digital freight brokerage platform live at freight.amazon.com, and it is undercutting market prices from 26 to 33 percent.
    ..
    Notice how ‘monetize’ comes after ‘disintermediate’. From a cursory review of four lanes in Amazon Freight’s current offering, it’s clear that Amazon is not trying to realize fat gross margins on its brokerage. Instead, it is massively undercutting market prices. Amazon’s new portal is intended for shippers who want Amazon’s rates for full truckload dry van freight in Connecticut, Maryland, New Jersey, New York, and Pennsylvania.
    ..
    As this table makes clear, Amazon quotes rates to shippers that are below even DAT’s broker-to-carrier spot rates. In other words, in its current form, Amazon Freight is a free, marginless brokerage.
    ..
    Monetization will come later, but this is the digital freight brokerage startup model on ‘Georgia overdrive’: massive capital deployed to rapidly scale a network on thin or negative margins and take share. There is no telling how big Amazon wants this business to grow, but at a certain point, prices will creep up as Amazon monetizes the brokerage service to fund further innovation.
    ..
    etc.

  2. #2
    Join Date
    Aug 2010
    Location
    Minnesota
    Posts
    1,956
    Post Thanks / Like
    Likes (Given)
    148
    Likes (Received)
    1443

    Default

    There will be a lot of crying... but having dealt with freight I would welcome the entire industry to become automated. I imagine happy truck drivers hang out with the honest politicians.

  3. #3
    Join Date
    Jan 2011
    Location
    BFE Nevada/San Marcos Tx
    Posts
    955
    Post Thanks / Like
    Likes (Given)
    840
    Likes (Received)
    493

    Default

    Its about time someone disrupts the industry, where to begin with my gripes. The flatbed haulers need the broomstick removed, they used to have reasonable rates, then when fuel prices went up they raised the rates, but when fuel prices dropped the rates stayed the same, then continued to rise. The freight class system needs to go, if it weighs 5000 Lbs and fits in a 40" cube it should not matter whether is feathers, scrap metal, or gold. Complete and utter inability to ever arrive within a 4 hour time frame, nor the courtesy to call and let you know they are running late, even though every driver has a cell phone, and most trucks are tracked with gps so dispatch knows they are running late too.

  4. Likes sfriedberg, Spinit, Mud, ranchak liked this post
  5. #4
    Join Date
    Jul 2009
    Location
    Peoria, IL
    Posts
    11,669
    Post Thanks / Like
    Likes (Given)
    50
    Likes (Received)
    8919

    Default

    Uber has been in the freight brokering business for a while. I get a spam email from them at least once a week. I haven't seen where they have "disrupted" anything.

    I'm not sure where Amazon expects to cut costs. Driver pay is already very low. Driver turnover in trucking is over 100% annually.

    Most other aspects are tightly controlled by government regulation. They cannot change the hours of service, size or weight of trucks, registration and fuel tax rates, insurance costs, fuel costs, etc.

    I would guess they will also not be involved in flatbed trucking in any way.

  6. Likes kustomizingkid liked this post
  7. #5
    Join Date
    Dec 2012
    Location
    Se Ma USA
    Posts
    1,434
    Post Thanks / Like
    Likes (Given)
    110
    Likes (Received)
    810

    Default

    Shipping by LTL is a total crapshoot. I ask my carrier who gets all of my business to ship 5000 pounds of stupid iron from MI to MA and get quoted in thousands. Supplier gets it to me for a bit over $600.00. 2 Pallets show up with the 5000 pounds of retired milling machine tables that I am going to use as welding tables.
    Something has to change because what we are doing and how we are doing it has gotta change.

  8. Likes dalmatiangirl61, sfriedberg liked this post
  9. #6
    Join Date
    Dec 2012
    Country
    AUSTRALIA
    Posts
    1,706
    Post Thanks / Like
    Likes (Given)
    7
    Likes (Received)
    520

    Default

    When I was in a area with trucks all over,I did favours for the drivers ,and they did favours for me........often I would get a machine picked up locally free (to me),where a company truck was coming back from a delivery empty..........there is also a thing called backloading,where the forward trip pays a lot extra cause there is no freight in the delivery location.......I would often get a backloading done for fuel cost,and bit of a tip to the driver......A really good honest ,integrated system would likely eliminate cheap backloading......As a local example Sydney to Brisbane was $120/ton,Brisbane to Sydney was $20 a ton,the rate being offered to transport scrap metal,and involving a lot of waiting outside a big scrap yard to unload.......owners who didnt like scrap damage ,went back empty.

  10. Likes PlasmaOnTheBrain liked this post

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •