Amazon shoulders its way into truckload brokerage space
Summary
Amazon quietly opened a freight brokerage pilot program late last month, aiming to build out — and lock down — a network of smaller carriers by buying up their time and miles. Whether Amazon has loads to keep them rolling is inconsequential: The company is selling that capacity to other shippers, sometimes at a loss, via its new brokerage platform, according to analysts familiar with Amazon’s system. The tech behemoth, which meteorically rose to the world’s largest retailer over the past decade and which has served as a major feeder of freight to nearly all segments of the trucking industry since, says the brokerage, which it calls a “beta program,” will initially operate in a five-state area in the northeast — Connecticut, Maryland, New York, New Jersey and Pennsylvania. In a statement to CCJ, Amazon offered little info on the new system and its intentions, while brushing off assertions that it’s undercutting brokers on rates. This service, intended to better utilize our freight network, has been around in various forms for quite some time.” Krieg’s Convey works with major shippers that compete with Amazon, such as Walmart, Neiman Marcus and Bed, Bath, and Beyond.
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