en.Wedoany.com Reported - Amazon has announced it will operate as a less-than-truckload (LTL) freight carrier, expanding its service from previously only covering inbound transportation routes to Amazon to now including any type of destination, such as third-party warehouses, distribution centers, and retail partners.
The Seattle-based e-commerce and logistics giant previously only offered LTL services when moving inventory to its own fulfillment centers. Now, Amazon Supply Chain Services (ASCS) has added LTL services, with a fleet of over 80,000 trailers and 24,000 intermodal containers. The service is open to businesses of all sizes and can handle shipments weighing between 150 and 15,000 pounds, typically one to six pallets, including goods moving into its warehouses, between its own facilities, or to its retail partners and distributors. Amazon states that pickup options include: next-day on-site pickup for orders placed before 5 p.m., same-day pickup through Amazon's trailer drop program, and regular daily pickup for high-volume shippers.
This move comes just one month after Amazon officially became a third-party logistics provider (3PL). At that time, Amazon opened its warehousing and transportation network to all shippers, not just those selling products through its online platform. Amazon says Amazon Supply Chain Services now encompasses its range of supply chain capabilities, including freight, distribution, fulfillment, and parcel shipping.
Transportation industry analysts note that LTL business currently accounts for only a small portion of Amazon's overall logistics footprint. Morgan Stanley stated in a research report to investors that this business could grow rapidly. The report said: "While LTL may only represent a small part of Amazon's overall logistics landscape, we reiterate that Amazon has repeatedly demonstrated its ability to gain traction in the transportation market through a flexible and iterative operating model. Therefore, we believe that even if the company cannot immediately provide best-in-class service levels, it may still capture significant market share."
TD Cowen's analysis suggests that to achieve growth, Amazon may need to invest in its network infrastructure. Its equipment pool of trailers and intermodal containers immediately makes it one of the largest LTL operators in the country, but "the ubiquity of its cross-docking capabilities and precise real estate configuration remain uncertain." TD Cowen specifically noted that the company's LTL network map appears to include 110 to 120 inbound nodes, but many of these are merely fulfillment centers lacking complete cross-docking infrastructure.
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