Should UPS and FedEx be worried?

A non-English speaker, unfamiliar with the shipper, the commodity, or the area doing P&D work?

A lead balloon would fly farther.

 

It would be slow for sure, you wouldn't have the white volvo crowd doing 30 stops in a day but if you have half a million of them and are paying them by the stop or mileage or some other scam then it wouldn't matter.

Most P&D freight is just random crap that doesn't matter. The big players like OD and Estes will take care of the stuff that is high value and critical to not get damaged. Everything else just needs to move for the lowest cost.

I don't see where it will be that big of an issue. It's a different business model than having a few guys that run wide open and very efficient at a higher wage; but it's a workable one I think.

 

All I see are Amazon Package delivery Trucks. The infrastructure here in metro Detroit is at least 5X the LTLs Theres 2 terminals within 5 miles of my house. Seems they build them in a couple months time. Each one is 20X the size of any LTL Barn. Each night I see a couple ABF Trucks headed out on their run from the local terminal. The volume is no comparison to Fed Ex, Amazon. I can see Amazon absorbing all the LTL in a short time. I’m amazed. At what point does Amazon overhead become a liability? The supply of Drivers never ends. There’s at least 30 O/O Trucks parked at any given time. Everyone says they’re cheap. Must be some opportunity. At least better than the local Container gigs. Makes me wonder. Friend of mine is starting with Universal hauling Containers next week. I’m curious how he does. Local pay has never been so low. Barely any better than all the other crappy factory and retail stores. It’s all foreigners.

 

To add to that power units per LTL company;

Estes: 9,000
OD: 11,000
Xpo: 10,000
Central: 4,000
FXF: 17,600
R&L: 10,000
ABF: 4,000
Southeastern: 3,000
Saia: 7,000
TForce: 4,000

Among the big players in LTL there are less than 100,000 trucks running. Granted, it's easily twice the amount of drivers to trucks but still. LTL is a tiny fraction of trucking but the most profitable mainline segment in trucking. Amazon has around 275,000 parcel delivery drivers and contracts about 50,000 different trucking companies. That's not drivers on the rig side, it's companies.

Actually, I don't see how Amazon hasn't taken over LTL already when you look at the numbers. Or at least taken a huge chunk of the business. If we start seeing big blue pup trailers that'll be the beginning of the end for the LTL carriers I think. I'd imagine either FXF, OD, or Estes will be the kingpin after companies start to go insolvent and merge with others to slow the bleeding. Then you'll have amazon running LTL for cheap junk and one big nationwide LTL hauling important stuff at a massive premium.

 

I've always heard from the people I've asked about Amazon say is two things: there is always a load you can take even if it pays terrible; and it will get you to a better freight area. Not sure how true that is, but it's what the few English speaking Amazon drivers have told me over the recent years.

 

I just drove past XPO. They’re dead. Central gets a lot of LTL in this area. I worked for them in 94 when they were Teamster. Not it’s $29hr. OT after 50. Sometimes you just have to go where the freight is. Personal opinions aside.

 

I don't live anywhere populated enough to see the car vending machines towers anymore, do those still exist?

 

I can't wait until somebody K-Mart's Amazon.