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TForce | Forget Ups: Here's Who's Really At Risk As Amazon Expands Its Shipping Reach

Dockworker said:
This is news from earlier this month. I agree the brokers are the first target.

Forget UPS: Here's Who's Really at Risk as Amazon Expands Its Shipping Reach
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Amazon is testing the water,so to speak, and won’t take the usual percentage of revenue for their cut. They are wanting to see if truckload carriers, and owner operators will bite on freight paying 25-33 percent less to get back to their home areas. So guess who will also lose money? The driver. Guaranteed, these companies will come up with different driver pay because of this. Any truckload carriers that are hauling a big percentage of their loads for Amazon, will feel the pinch. I hope many walk away from hauling Amazon freight, but many won’t. The old mentality of ,”I am loaded all the time, so I am making money.”
 
I gave up the owner-operator thing in late 1992. Fuel had hit $1.45 a gal., J. B. Hunt was bragging, "All I need is a $5 a day profit from each truck we operate", the west coast guys would run cheap west, the east coast guys would run cheap east. Hi=way taxes and permits were a nightmare, bingo cards, more fuel stickers on the cab than a Grateful Dead mini-bus full of hippies. Brokers making unreasonable delivery deals, warehouse demanding restacking of freight, "that skid is bad, we are on small wood, we want it 6 hi, not 5 hi". Lumpers demanding almost, or more than I made hauling the stuff. I see the truckload rates are not much different then, than now. Amazon is definitely going to be a game changer. In the short term I believe, long term the industry will react and find a way to capitalize on this, they always have. Amazon has incredible capitol to work with, it will be interesting for sure.
 
Crumudgeon said:
I gave up the owner-operator thing in late 1992. Fuel had hit $1.45 a gal., J. B. Hunt was bragging, "All I need is a $5 a day profit from each truck we operate", the west coast guys would run cheap west, the east coast guys would run cheap east. Hi=way taxes and permits were a nightmare, bingo cards, more fuel stickers on the cab than a Grateful Dead mini-bus full of hippies. Brokers making unreasonable delivery deals, warehouse demanding restacking of freight, "that skid is bad, we are on small wood, we want it 6 hi, not 5 hi". Lumpers demanding almost, or more than I made hauling the stuff. I see the truckload rates are not much different then, than now. Amazon is definitely going to be a game changer. In the short term I believe, long term the industry will react and find a way to capitalize on this, they always have. Amazon has incredible capitol to work with, it will be interesting for sure.
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2 years after deregulation, I sold mine.
 
Crumudgeon said:
I gave up the owner-operator thing in late 1992. Fuel had hit $1.45 a gal., J. B. Hunt was bragging, "All I need is a $5 a day profit from each truck we operate", the west coast guys would run cheap west, the east coast guys would run cheap east. Hi=way taxes and permits were a nightmare, bingo cards, more fuel stickers on the cab than a Grateful Dead mini-bus full of hippies. Brokers making unreasonable delivery deals, warehouse demanding restacking of freight, "that skid is bad, we are on small wood, we want it 6 hi, not 5 hi". Lumpers demanding almost, or more than I made hauling the stuff. I see the truckload rates are not much different then, than now. Amazon is definitely going to be a game changer. In the short term I believe, long term the industry will react and find a way to capitalize on this, they always have. Amazon has incredible capitol to work with, it will be interesting for sure.
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I left in 87, hey gave me load and said here is the new rate( $250 less than what it had paid the week before). I said there is no money in that , boss said well the rest are willing to do it. He did not like my answer at that time. Dispatch gave me a different load that paid got to location ( been there many times) and said load is delayed 2 day. Company said you have to wait at $25 dollars a day layover. I put the trailer in the back of the companies yard( with their permission) and bobtailed 400 miles home. I got back and they said where’s the trailer and said still at the customer. Last day as an O/O. Never looked back. Scary things some loads for O/O pay now what they did 30 years ago.
 
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