Amazon now a Freight Brokerage, Slashing rates 30% below market nationally.

Discussion in 'Freight Broker Forum' started by x1Heavy, Apr 28, 2019.

  1. x1Heavy

    x1Heavy Road Train Member

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    Hold on to your hats Owner Operators and Motor Carriers.

    Amazon is now in the Freight Broker Business and will slash the rate down 30% below local prevailing traffic lane freight rates. Tighten your belts. They are big enough to do it, forcing the bottom down, and shaking out those who cannot afford to haul for so little. Or meet their margins brokering at higher rates.

    If a lane pays 1000 to the truck, Amazon will broker that same freight for 700 and be pleased to have you ship with them.

    A "Nightmare Come True": Amazon Launches Freight Brokerage, Slashes Prices By 30%
     
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  3. gokiddogo

    gokiddogo Road Train Member

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    If they're able to give sufficient service at that price then more power to them. Good luck sustaining it.
     
  4. Frontman

    Frontman Light Load Member

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    Got an email from them, just this mornin.

    AMAZON - New Carrier Onboarding
     
  5. windsmith

    windsmith Road Train Member

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    When we all say NO to the cut rates, the freight won't move.

    Remember that.

    My dry van hasn't moved in over 6 weeks due to low rates. I'm not going to move freight for free, nor should you.

    I bought a step deck trailer yesterday. Flat and step rates are lower than they should be, but I can at least pay myself with those loads.
     
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  6. LoneRanger

    LoneRanger Road Train Member

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    You say no but a million steering wheel holders will say yes.


    Hold on it’s going to get worse.


    @Frontman i too just got it last week, but their insurance requirements are high, not sure how they plan on doing it.
     
  7. windsmith

    windsmith Road Train Member

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    Those guys are going broke, but they don't know it yet. Rates will come back up in August when the repo man comes for the trucks.

    My equipment is paid for, and I have another business enterprise that generates enough income to allow me to park my truck when it's not profitable to run it.

    I don't work for free so that others can profit. You shouldn't either.
     
  8. Intothesunset

    Intothesunset Road Train Member

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    I need a job.
    Should I even bother after 5 months out of a truck?
    I wonder if I should just work for Amazon assembling products from home?

    What is the ATA , and the JB Hunt, and Werner size carriers going to do about this new development??
     
  9. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    The ATA companies all together don't move even 10% of the freight. I don't think they will be too concerned but I'm sure they will be watching closely.
     
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  10. LoneRanger

    LoneRanger Road Train Member

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    I don’t haul cheap freight but I do have a truck payment not much but I had to after my last truck crapped out on me.

    I have to stay on the road so I’m wondering when these low ball haulers are going to stop hauling because it’s been like this ever since I’ve been involved in the industry.
     
    Intothesunset Thanks this.
  11. x1Heavy

    x1Heavy Road Train Member

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    They wont because they have to stay hauling, just like you described.
     
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