Originally published at: Amazon's LTL gap has a name: Forward Air - FreightWaves
The fastest way for Amazon to add a premium expedited tier to its new national LTL network is to buy the one carrier already built for it — and already on the auction block Amazon (NASDAQ: AMZN) opened its less-than-truckload network to all businesses this week, and the market reaction was muted. Shares of the…
Reflects lack of understanding of the LTL market.
As a shareholder of FWRD, it will be great if Amazon acquires it and pays $110 per share, the price before Omni deal was announced. More importantly, no one is raising the issue of why Amazon would want to enter LTL market either as carrier or a broker which is saturated with competitors, generates low margin and will dampening its valuation for investors.
I have to agree with this assessment. I work for a legacy LTL carrier. Our freight gets moved based on safety and on time metrics. Our trailers have cut times based on delivery dates, not on whether a trailer is full or not.