, relies on a nationwide network of trucking carriers to move huge volumes of products across America. It has decided to cut out the middle man and act as the broker between shippers and truckers. As a result, it should have greater control over its access to trucking capacity and the price it pays.
Initially, Amazon is offering access to a 53 foot full truckload dry van freight in New York, New Jersey, Pennsylvania, Connecticut, and Maryland, according to FreightWaves. It charges about $709 to transport freight from Albany, New York to Washington, D.C. — a discount of just over 33% to DAT's broker-to-carrier spot rate of about $1,066, according to FreightWaves, which described the service as a"free, margin-less brokerage.
Amazon is sticking to its tried-and-tested recipe for market domination: undercut competitors and rack up losses as it captures market share, then raise prices and turn a profit once it's gained traction and scale and driven rivals out of business. "Tap into the scale of Amazon as we extend our carrier network to give you best-in-class service at great rates,"The service competes with veteran brokers such as C.H.