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Business Insider Amazon low rates

Discussion in 'Freight Broker Forum' started by Dino soar, Jun 22, 2019.

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  1. Jun 22, 2019 #1
    Dino soar

    Dino soar Road Train Member

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    Truckers say Amazon's new logistics empire is being underpinned by low, 'ridiculous' rates — and some are refusing to work with them

    According to a recent report from FreightWaves, Amazon's rates in the spot market — which is when retailers and manufacturers buy trucking capacity as they need it, rather than through a contract — are on average 18.4% lower than rates posted on DAT, one of the largest broker boards in the country.


    I can understand some Brokers pushing some low paying loads. But it boggles the mind that it businesses as large is Amazon would be able to keep trucks rolling by paying nothing.

    If the people in the industry itself have any sense whatsoever, those prices will rise.

    I'm not going to make any bets on people in this industry having sense, though.
     
    Last edited: Jun 22, 2019
    Dino soar, Jun 22, 2019
    Dino soar, Jun 22, 2019
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  3. Jun 22, 2019 #2
    tscottme

    tscottme Road Train Member

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    Big companies often pay less for things than smaller companies because the people doing business with them imagine they will become THE SOURCE for the big company's needs on X. Big companies also have a lot more leverage to demand lower costs for things because they suggest "sure, you'll lose money on each load but you can make up your losses by running more loads." Those idiots that spend more time deciding what color truck to lease rather than how to make a profit are prime targets for companies like Amazon.
     
    tscottme, Jun 22, 2019
    tscottme, Jun 22, 2019
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  4. Jun 22, 2019 #3
    Scooter Jones

    Scooter Jones Road Train Member

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    But their loads tend to be really light, just think how much you can save on fuel! LOL
     
    Scooter Jones, Jun 22, 2019
    Scooter Jones, Jun 22, 2019
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  5. Jun 22, 2019 #4
    MazelTruck

    MazelTruck Light Load Member

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    LOL.
     
    MazelTruck, Jun 22, 2019
    MazelTruck, Jun 22, 2019
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  7. Jun 22, 2019 #5
    tnpete

    tnpete Medium Load Member

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    What loads?? I thought they were going to run all automated trucks. The rest would be delivered by unmanned aerial vehicle and turtles.
    Plus there allowing grandpa and grandma to deliver local packages.
     
    tnpete, Jun 22, 2019
    tnpete, Jun 22, 2019
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  8. Jun 23, 2019 #6
    Ruthless

    Ruthless Road Train Member

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    In the OO forum, there’s a amazon post, which has the rates posted in it. They are laughable. Yet ever other person commenting wants the contact info. Guess they don’t have access to a calculator to see how much they gonna lose ?
     
    Ruthless, Jun 23, 2019
    Ruthless, Jun 23, 2019
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  9. Jun 24, 2019 #7
    Dino soar

    Dino soar Road Train Member

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    "According to a recent report from FreightWaves, Amazon's rates in the spot market — which is when retailers and manufacturers buy trucking capacity as they need it, rather than through a contract — are on average 18.4% lower than rates posted on DAT, one of the largest broker boards in the country"

    "Outside of picking up quick loads on the company's new freight board, many trucking executives don't like entering into contracts with Amazon. They say contracts with Amazon are "heavily one-sided" towards the e-commerce behemoth, according to the FreightWaves report."

    "That means rates can be too low to turn a profit, but it can also mean that the company demands so much capacity that it overwhelms a company's network"

    "And, when Amazon suddenly shifts its logistics strategies, the company is at risk of losing a major customer that it may have grown dependent on"


    I don't understand how anyone does business with them.
     
    Dino soar, Jun 24, 2019
    Dino soar, Jun 24, 2019
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  10. Jun 25, 2019 #8
    Last Time Around

    Last Time Around Medium Load Member

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    They probably aren't doing business with them,,,,,, merely servitude.... til last person turns off the lights
     
    Last Time Around, Jun 25, 2019
    Last Time Around, Jun 25, 2019
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  11. Jun 25, 2019 #9
    LoneRanger

    LoneRanger Road Train Member

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    I had to drop a load to one of their distributor centers and seen lots of Schneider and Jb hunt trucks and trailers there.

    Guess they are making some money?

    Oh and saw this which was funny because of this is the type of drivers they have then ok.

    Look at the parking job on that jb hunt trailer.
     

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    LoneRanger, Jun 25, 2019
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  12. Jul 11, 2019 #10
    Bill51

    Bill51 Road Train Member

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    There's a reason our immigration system has been broken this long.
     
    Bill51, Jul 11, 2019
    Bill51, Jul 11, 2019
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