Amazon Launches Freight Brokerage; Spreads Terror in 3PL, Trucking Communities

An annual freight spend of $28B makes Amazon one of the big players in transportation procurement. Last week, Amazon Logistics launched Amazon Freight, \”a free, marginless brokerage\”.

\”Disintermediate, monetize, innovate\”

Amazon Freight is undercutting market prices (sub $2/mile regional dry van TL) to grow this new 3PL. Do they seek profit, to secure capacity, lower their own rates by supplying a zero margin backhaul? Likely all the above.

Stay tuned for when the cows come home to roost, and read the full article at Business Insider.