Check call: Amazon Freight of tomorrow
Last week we took a little trip down memory lane to find out how Amazon Freight got started. Some may be more intimately familiar with the origin story than others. Amazon Freight is poised to be the next UPS and won’t stop until it achieves that status, regardless of the cost.
Amazon Freight has around 40,000 trucks via independent contractors that do one-way trips, with the goal of going forward to get returns or partnering with shippers to use capacity. We know that Amazon offers LTL space at discounted rates through Amazon Freight. And we know that Fulfillment By Amazon (FBA) service orders didn’t go through Amazon.com.
When Amazon trucks complete a move from the arrival center to another part of the network, there is usually no pending load to bring that truck back to the fulfillment center, which means it comes back empty. Unless of course not. This is where we can expect to see Amazon Freight come in with lower than normal rates in the market.
He has to secure some sort of freight to get his drivers back without eating up the total cost of a dead truck.
Currently, Amazon Freight has opened up its air freight transportation network for the US Postal Service. Amazon Air has expanded to the Cincinnati-Northern Kentucky International and Ohio’s Wilmington Air Park hubs, making Amazon Air and Amazon Freight a strength of affirmation third-party delivery. Additionally, Amazon’s air freight network is a possible workaround for shipping delays.
During its development phase, Amazon âpartneredâ with UPS to learn more about its network, obtaining UPS to share owner information, give tours of operations and sell Amazon on UPS as a partner. When UPS realized that Amazon was building its own freight network, it moved away from its current competition, which led to Amazon hiring a group of logistics managers to develop its own delivery strategy.
Amazon is notorious for severing ties with transportation providers in the blink of an eye, most often under the guise of âperformance security issuesâ. These issues cannot be too severe because Amazon hosts these drivers in the network, under another Amazon vendor, or they participate in an Amazon approved program. trucking business incubator. This company has recently been criticized for its poor warehouse conditions and removing the human element from storage.
Amazon may not come to alleviate your capacity and freight issues all the time, but it is likely that it will become difficult for external freight in the fourth quarter, the peak retail season. This is usually the highest volume for the business, this is when it can best To augment its additional capacity and save its bottom line at the end of the year.
We understood; you vapot – Last Thursday, the U.S. Postal Service implemented a congressional mandate to ban the shipping of all vaping products. The ban on postal service combined with those of DHL, FedEx and UPS, makes it difficult for the vaping industry to get its products to market. The industry has also been subject to the Prevent All Cigarette Trafficking Act of 2009, designed to curb online sales of untaxed cigarettes.
A few companies have stepped forward to help fill the void left by the large carriers of small packages. They include Vape Freight and LSO. LSO is a Texas regional carrier that has been transporting vaping products for some time. CEO Richard Metzler said it was a “headache for me” why vaping products are treated differently by carriers than other legal products adults have to sign up for.
It’s a big new world – Descartes MacroPoint and FreightWaves SONAR Lane Score data are available in one place. The combination gives a clear picture of available capacity and market pressure on a lane-by-lane basis.
SONAR Lane Score allows the individual carrier representative to visualize the market conditions on each lane via a simple scoring system (1-100) that represents how attractive (or not) it will be to cover open loads on that lane.
Matching also improves day-to-day ease, as brokers can use lane scores as automation triggers to send offers to the most suitable operators serving the network. Through this partnership, everyone gets the critical information they need to prioritize and execute shipments faster and more cost effectively.
Houston’s outbound volumes slowed down a bit from the start of the month but remain average compared to last year. The Port of Houston is expected to handle more overflow from the ports of Long Beach and LA, while overcoming their high levels. Rejection rates are also down from where they were a few weeks ago, meaning carriers are arriving there to pick up cargo.
Maybe it’s the calm before the storm. As we prepare for peak retail season, I would take the opportunity to move shipments at a slightly lower rate and get some of the cheaper freight from shippers now before ramping up and reaching levels corresponding to mid-October and last year.
Who is with whom
Canadian company XTL acquired Georgia freight brokerage firm CBT, creating the first Canadian company operation based in the United States. Both companies focus on the restaurant industry and poultry and egg processors. It is an opportunity that allows the two companies to sell in a market they have never experienced before, while improving service to their customers. Read more here.