Draft:Amazon Freight
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| Company type | Subsidiary of Amazon (company) |
|---|---|
| Industry | Logistics, Freight transport |
| Founded | 2019[1] |
| Headquarters | Seattle, Washington, U.S. |
| Services | Truckload shipping, Full Truckload (FTL), Less-than-truckload shipping, Intermodal freight transport, and related Logistics services |
| Parent | Amazon (company) |
| Website | freight |
| Website | freight |
|---|
| Website | freight |
|---|
| Website | freight |
|---|
Amazon Freight is a business-to-business (B2B) transportation and logistics service from Amazon that provides freight movement to external shippers while also managing the middle-mile transportation for Amazon's own network[4]. The service's operations are managed through a proprietary, technology-driven platform, utilizing a large fleet of owned assets and a network of third-party carriers. The division has been recognized for its technological leadership in the freight sector but has also been the subject of critical investigation concerning the safety records of its contracted carriers.
History and Development
[edit]Amazon's entry into freight transportation was driven by the need to control its supply chain after delivery failures during the 2013 peak season.[5] This led the company to expand its logistics footprint to reduce reliance on external partners like UPS and FedEx. Amazon initially entered the freight brokerage business in 2016, a service that was internally focused on middle-mile carriers moving loads for the company.
In August 2018, Amazon Freight began offering its services to external third-party shippers, starting with full truckload (FTL) dry van hauls in five Eastern states.[6] This was quickly followed by a broader expansion across the entire contiguous United States.[7] The company's entrance into the market "roiled the markets," and was seen by many as a move that would apply downward pressure on dry van spot rates due to Amazon's size and financial scale.[1] By externalizing its internal logistics network, Amazon transformed a significant operational cost into a scalable revenue stream.
Operations and Technology
[edit]Amazon Freight utilizes a hybrid operational model that combines physical assets with a proprietary technological infrastructure. The company's network includes over 70,000 GPS-tracked trailers and a fleet of more than 24,000 owned intermodal containers.
Full Truckload (FTL): This core offering is for large shipments that require a dedicated truck[8] and is available in the U.S.[9], UK[2], and across selected EU lanes[10]. The service is supported by a network of carriers and technology that provides real-time GPS tracking.
Less-than-Truckload (LTL): Solutions designed for smaller shipments. The LTL program was expanded to Germany in a recent period[11] and analysts have noted the potential for a U.S. launch.[12][13]
Intermodal (IMDL): This service combines truck and rail transport for enhanced efficiency.[14] It leverages a fleet of over 24,000 owned intermodal containers and rail partnerships to manage shipments.
Technology and Innovation
Amazon Freight's operations are "powered by Amazon's technology". The company uses artificial intelligence (AI) to optimize transportation routes, which has reportedly helped enhance efficiency and reduce carbon emissions. This technological focus has led to Amazon Freight being named to the top of the FreightWaves FreightTech 25 list for 2024, recognizing its innovation in externalizing its infrastructure and technology for other shippers. For customers, Amazon Freight provides a web portal, API, and direct integration with Transportation Management Systems (TMS) for seamless booking and tracking.
Carrier Safety and Critical Scrutiny
[edit]Amazon Freight's reliance on a vast network of third-party carriers has subjected its operations to significant scrutiny regarding safety and vetting protocols.
The Wall Street Journal Investigation In September 2022, the Wall Street Journal published an investigation reporting that the trucking companies frequently contracted by Amazon were involved in crashes that killed more than 75 people since 2015. The analysis found that regular Amazon contractors were more than twice as likely to receive poor unsafe driving scores. The report also noted that some carriers with a "conditional" DOT safety rating continued to haul Amazon loads, a status often grounds for rejection by major shippers. The issue was formally cited in U.S. Congressional records during discussions on trucking safety.
Management Response and Policy Changes In response to the investigation, Amazon stated that its network is safe and that the data used by the Wall Street Journal was "dated". Following the critical findings, Amazon detailed changes to its carrier screening processes. The company asserted that its internal safety threshold for carriers is now more stringent than the Department of Transportation's minimum requirements. Amazon stated it had suspended 39 of the 48 non-compliant companies flagged in the review and re-evaluates carrier scores on a monthly basis.
Market Position and Competition
[edit]Amazon's logistics infrastructure has made it a dominant force in the global logistics market.[15] Amazon Freight leverages this scale to compete directly with both asset-light brokerages, such as C.H. Robinson, and major asset-based carriers. The company’s business model is designed to use its internal network to drive down its own logistics costs. The revenue from external services helps offset these costs, allowing Amazon Freight to sustain competitive pricing in the market.[16] A development illustrating the evolving competitive dynamics is UPS's announced plan to reduce its shipping volumes for Amazon.[17]
Some industry analysts have raised concerns about Amazon's potential for unfair competition given its dual role as a major e-commerce platform and a third-party logistics provider.[18]
Industry rankings that rely on self-reported brokerage revenue do not consistently list Amazon Freight or Amazon Logistics, underscoring the limited public disclosure of its financial performance as a distinct business line.
References
[edit]- ^ a b c "Amazon Is Becoming a Disruptor in the Freight Logistics Market". GEP. 2024. Retrieved 24 July 2025.
- ^ a b "Amazon Freight: Freight Shipping & Cargo Transportation Services". Amazon Freight UK Official Website. Retrieved 24 July 2025.
- ^ Cite error: The named reference
AmazonFreightGermanywas invoked but never defined (see the help page). - ^ "Amazon Transportation Services". Amazon.com. Retrieved 24 July 2025.
- ^ "A Timeline of Amazon's Shipping and Fulfillment Evolution". Bringg. 2025. Retrieved 24 July 2025.
- ^ "Amazon Expands Freight Brokerage to All Shippers". FreightWaves. 2024. Retrieved 24 July 2025.
- ^ "Amazon expands freight services across Europe". Reuters. 2023. Retrieved 24 July 2025.
- ^ "FTL vs. LTL: Choosing the Right Freight Shipping Method". AMZ Advisers. 2023. Retrieved 24 July 2025.
- ^ "Amazon Freight". Amazon Freight Official Website. Retrieved 24 July 2025.
- ^ "Cargo freight forwarding services made easy with Amazon Freight". Amazon EU. 2025. Retrieved 24 July 2025.
- ^ "Amazon's LTL Expansion: What It Means for the Industry". MyFBAPrep.com. 2024. Retrieved 24 July 2025.
- ^ "Amazon Freight plans LTL expansion". Transport Dive. 2024. Retrieved 24 July 2025.
- ^ "LTL Industry Outlook: Weak Demand, Pricing Pressure, and Amazon's Entry". Journal of Commerce. 2024. Retrieved 24 July 2025.
- ^ "Amazon eyes intermodal rail expansion". Supply Chain Digital. 2024. Retrieved 24 July 2025.
- ^ "Amazon's network is now bigger than UPS and FedEx". Axios. 2024. Retrieved 24 July 2025.
- ^ "J.P. Morgan Research: Amazon Shipping". J.P. Morgan. 2024. Retrieved 24 July 2025.
- ^ "UPS to Cut Amazon Shipping Volumes by Over 50% by 2025". Supply Chain Digital. 2024. Retrieved 24 July 2025.
- ^ "Amazon's Antitrust Problem". Logistics Viewpoints. 2024. Retrieved 24 July 2025.