3 Questions We Can't Answer About Amazon LTL
On Wednesday, June 10th, Amazon announced that they will now offer full LTL services to anyone.
Before that, LTL was available "inbound only," meaning from Amazon sellers to Amazon facilities to Amazon customers. In their press outreach, the company has touted their 80,000 trailers and 24,000 intermodal containers, as well as improved load visibility and fleet security measures.
The response to this announcement was split. Traditional freight carriers like FedEx Freight, Old Dominion, and XPO lost market value, but some analysts have a different take. They are not so sure we should have the reaction we've been conditioned to have when Amazon moves into a new market. At least not yet.
In this episode of the Art of Supply podcast, Kelly Barner covers three big questions looming over this story:
- Is Amazon LTL truly functioning as an asset-backed carrier, or are they more of a broker behind a front of assets?
- What kinds of shippers will the Amazon LTL service appeal to?
- Do Amazon's integrated abilities position them to completely upend how freight works?
We can't promise you will get the answer to those questions in this episode, but listeners should walk away with a better understanding of why they matter.
Links:
Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/
Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193
Art of Supply on AOP: http://www.artofsupply.com
Subscribe to the Art of Procurement Newsletter: https://resources.artofprocurement.com/art-of-procurement-podcast-subscribe
Before that, LTL was available "inbound only," meaning from Amazon sellers to Amazon facilities to Amazon customers. In their press outreach, the company has touted their 80,000 trailers and 24,000 intermodal containers, as well as improved load visibility and fleet security measures.
The response to this announcement was split. Traditional freight carriers like FedEx Freight, Old Dominion, and XPO lost market value, but some analysts have a different take. They are not so sure we should have the reaction we've been conditioned to have when Amazon moves into a new market. At least not yet.
In this episode of the Art of Supply podcast, Kelly Barner covers three big questions looming over this story:
- Is Amazon LTL truly functioning as an asset-backed carrier, or are they more of a broker behind a front of assets?
- What kinds of shippers will the Amazon LTL service appeal to?
- Do Amazon's integrated abilities position them to completely upend how freight works?
We can't promise you will get the answer to those questions in this episode, but listeners should walk away with a better understanding of why they matter.
Links:
Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/
Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193
Art of Supply on AOP: http://www.artofsupply.com
Subscribe to the Art of Procurement Newsletter: https://resources.artofprocurement.com/art-of-procurement-podcast-subscribe
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