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Amazon Freight
Company typeSubsidiary of Amazon (company)
IndustryLogistics, Freight transport
Founded2019[1]
Key people
Ari Silkey (General Manager, Amazon Freight)[2]
ServicesTruckload shipping, Full Truckload (FTL), Less-than-truckload shipping, Intermodal freight transport, and related Logistics services
ParentAmazon (company)
Websitefreight.amazon.com
Amazon Freight US
Websitefreight.amazon.com
Amazon Freight UK
Websitefreight.amazon.co.uk
Amazon Freight Germany
Websitefreight.amazon.de

Amazon Freight is a logistics and transportation service offered by Amazon, utilizing its internal network and technology to offer freight services to third-party businesses. Initially developed to manage Amazon's internal shipping needs, the service has expanded to offer a range of transportation options, including full truckload, less-than-truckload, and intermodal services.[6]

History and Evolution

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Amazon's investment in its logistics infrastructure stemmed from its internal needs for delivery for its e-commerce operations. This led to the development of a network of warehouses, transportation assets, and technological systems. Over time, Amazon began to externalize these capabilities, offering them as services to other businesses. This decision allowed Amazon to generate revenue from its existing infrastructure while potentially improving asset utilization.[6]

Evolution of Internal Logistics Capabilities

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Key milestones in the evolution of its internal logistics capabilities include:

  • 1997: Opening of its first fulfillment centers (FCs) in Seattle and Delaware, establishing its internal logistics network.[7]
  • 1999: Expansion with multiple FCs across the US and Europe.[7]
  • 2005: Launch of Amazon Prime, introducing two-day shipping, which influenced customer expectations for delivery speed.[7]
  • 2009: Announcement of same-day delivery services, later expanded to various cities.[7]
  • 2012: Acquisition of Kiva Systems, which introduced automation to warehouse operations, with the aim of enhancing efficiency and reducing costs.[7]
  • 2013: Announcement of Amazon Prime Air (drone delivery service), and the formulation of an internal strategy to own its entire supply chain.[7] The build-out of a dedicated delivery station network also began.[7]
  • 2014: Commencement of an expansion of urban distribution networks and the introduction of sortation centers, with the aim of optimizing regional logistics.[7]
  • 2015: Launch of Amazon Prime Now and Amazon Flex, diversifying last-mile delivery options.[7] "Project Aerosmith," trial cargo runs for air freight, also began.[7]
  • 2016: Amazon leased 20 Boeing 767s to expand its air cargo capabilities.[7]
  • 2018: The Delivery Service Partner (DSP) program was launched, enabling entrepreneurs to operate Amazon-branded delivery businesses.[8]
  • 2019: Amazon Freight was formally launched as an external-facing service (an idea conceived in 2017).[1] A digital freight brokerage platform for FTL services was introduced in key eastern US states.[1] Amazon also co-founded The Climate Pledge, committing to net-zero carbon emissions.[9]
  • 2022: The rollout of custom electric delivery vans, developed in partnership with Rivian, began.[10]
  • 2023: Amazon Prime Air was launched in India, expanding air cargo operations internationally.[11]
  • Recent Developments: Less-than-truckload (LTL) services became available for Amazon Freight inbound shipping, further integrating its logistics offerings.[5]

Services

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Amazon Freight offers a portfolio of services for businesses requiring freight transportation.[6] These services utilize technology to address aspects such as reliability, performance, and speed.[6]

Full Truckload (FTL) Services

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FTL services are designed for large shipments that require dedicated truck space. This ensures that the entire trailer is used by a single shipper's goods, which is suitable for large, time-sensitive, or high-value loads, typically ranging from 10 to 22 pallets.[12][13] Amazon (US) utilizes a fleet of over 70,000 GPS-tracked trailers and a network of carrier partners to provide its services, while Amazon Freight in the UK and EU operates with more than 6,500 owned trailers and over 13,000 trusted carrier partners, with a stated emphasis on reliability and on-time delivery.[6][9] Dedicated FTL shipments generally result in fewer stops, which can contribute to faster delivery times and reduced risk of damage or loss due to less handling.[13] Amazon Freight also offers "power-only loads" through its Amazon Relay platform, which can facilitate "Drop & Hook" operations where a carrier picks up a pre-loaded trailer and drops off an empty one, potentially enhancing efficiency.[14] Shippers can book FTL services for delivery to Amazon facilities, their own facilities, or any other third-party destination.[3] FTL trailers typically hold between 24 and 30 pallets, with a maximum weight limit of up to 20,000kg.[13] Amazon Freight supports most commodities that can be shipped in standard 13.6m dry van trailers for live pickup and delivery, but generally excludes hazardous materials, refrigerated goods, and other prohibited items.[3]

Less-than-Truckload (LTL) Services

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LTL services cater to smaller inbound freight, allowing multiple businesses to share truck space, potentially affecting individual shipping costs while potentially affecting individual shipping costs while aiming for reliability.[6] This approach seeks to optimize efficiency and reduce costs by utilizing Amazon's trailers and strategically located terminals.[9] Amazon has announced plans for a nationwide, technology-driven rollout of LTL services in the US, building on European pilots that have demonstrated a 97% on-time delivery rate.[15] LTL services in the UK are available for goods shipped to Amazon Fulfillment Centres.[3] German operations report that over 96% of LTL loads are picked up and delivered on date, with 24/7 customer support, and offers spot and contract rates.[4] LTL loads can range from as little as 100 pounds to as much as 10,000 pounds, and typically have a pallet limit of six pallets per shipment.[16] This service is particularly for shipments between one and six pallets or those less than 14 linear feet, optimizing space utilization and potentially offering cost savings by sharing the truckload.[17] Amazon's emphasis on LTL for inbound shipments to its fulfillment centers aims to achieve greater control and efficiency over the "first mile" of its supply chain.[18] By managing the inbound flow of freight, Amazon can optimize its warehouse receiving processes, potentially affecting dwell times for incoming goods and contributing to a more predictable and streamlined flow of inventory into its system.[19] This approach can influence Amazon's internal operational efficiency and may allow the company to establish standards for how goods arrive at its facilities.[20] This further integrates suppliers and sellers into Amazon's logistics framework, supporting Amazon's delivery objectives for its end consumers.

Intermodal (IMDL) Services

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Intermodal services combine the flexibility of trucking with the efficiency and environmental aspects of rail transport, offering a door-to-door solution. Amazon leverages a fleet of over 24,000 owned containers and partnerships with railroads to manage the entire journey, including the drayage legs (the short-distance transport between a rail yard and a destination).[6][9] This service is designed for shipping that considers performance and sustainability, and has demonstrated significant growth in its use of rail and sea transportation in Europe.[21] Intermodal transport is offered across the UK, throughout Europe, and globally, providing end-to-end visibility for shipments.[21] This service can contribute to Amazon's broader sustainability efforts, as intermodal transport, particularly the combination of truck and rail, may reduce carbon emissions compared to equivalent road-only transport.[22]

[edit]

Beyond its core freight offerings, Amazon provides an ecosystem of integrated logistics and partner-centric services that support various aspects of the supply chain:

  • Amazon Relay: This is a digital load board and contracting platform for trucking companies and independent carriers.[14] It provides access to thousands of power-only loads, particularly during peak seasons, along with flexible booking options, quick payment processing, and a mobile app for drivers that offers commercial navigation and check-ins.[14] Relay aims to reduce empty miles and support carriers by offering a consistent flow of deliveries and optimizing routes.[14] Booking mechanisms include instantly booking one-off spot loads via the "Load board + Post A Truck" feature, participating in transparent auctions for specific lanes, and entering into multi-week round-trip contracts.[14] An equipment marketplace within Relay also allows carriers to potentially generate additional revenue by renting their unused trailers to Amazon.[14]
  • Amazon Freight Partner Program (AFP): This program enables individuals to start and operate trucking businesses by exclusively moving Amazon freight between its warehouses and delivery stations.[23][24] Amazon provides trucks with no upfront down payment, covers operational costs such as tolls, truck insurance, and fuel, and offers training and business coaching.[23] The program has expanded since its public launch in 2021, growing to employ a notable number of drivers within its network, a scale comparable to some national trucking carriers.[25] The program emphasizes a structure that aims to lower startup costs and encourages AFPs to offers full-time W-2 employment with pay, healthcare, and other benefits.[23][25]
  • Amazon Shipping: A ground delivery service allowing businesses to use Amazon's expansive transportation network for parcel delivery, regardless of their sales channel.[9][2] This service offers parcel delivery with various speed options, including next-day and two-day delivery.[2]
  • Amazon Air Cargo: Provides expedited air freight delivery services for time-sensitive shipments.[11] It operates with a fleet of over 100 aircraft (including Boeing 737-800, 767, and Airbus A330 freighters) and maintains a frequency of more than 250 daily flights, seven days a week, to provide air transport across domestic and international networks (US, EMEA, India, Asia).[11] Amazon Air Cargo handles a range of products, including general cargo, pharmaceuticals, perishables, and certain dangerous goods.[11]
  • Multi-Channel Fulfillment (MCF): A third-party logistics (3PL) solution enabling businesses to leverage Amazon's global fulfillment network to handle the picking, packing, shipping, and delivery of customer orders originating from off-Amazon sales channels, such as a company's own website.[26] This service allows for inventory consolidation into a single pool for both on- and off-Amazon orders, potentially affecting costs and streamlining operations.[26] MCF is offered in 11 countries, including the United States, Canada, Mexico, United Kingdom, Germany, France, Italy, Spain, India, Japan, and Australia.[26]
  • Supply Chain by Amazon: This integrated end-to-end logistics solution connects global shipping, warehousing, and fulfillment into a single system.[27] It manages products from manufacturing facilities, handles cross-border shipping, customs customs clearance, ground transportation, bulk inventory storage, replenishment across Amazon and other sales channels, and direct delivery to customers.[27] It aims to support sellers by automating inventory replenishment and streamlining the supply chain process.[27]

Global Operations

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Amazon Freight's operational footprint spans multiple continents, with presence and planned expansions in key markets, supported by a dense network of logistics facilities. Amazon Freight aims to provide services to businesses of various sizes across different industries that need to move goods efficiently within Amazon's expanding coverage areas.[6]

United States (US)

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In the US, Amazon Freight offers FTL and Intermodal services across thousands of lanes.[6][9] The company is planning a nationwide, technology-driven rollout of LTL services.[15] To support network density for LTL, Amazon is evaluating smaller cross-dock properties near major hubs like Atlanta, Dallas, and Riverside.[15] Furthermore, Amazon has committed investment to expand Same-Day and Next-Day delivery services to thousands of smaller U.S. communities, involving new delivery stations and conversions of existing hubs.[7] This initiative aims to position products closer to customers and reduce transportation distances.[7]

United Kingdom (UK)

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In the UK, Amazon Freight provides FTL coverage across all of Great Britain (excluding Scottish Highlands).[3] LTL coverage is available across Great Britain (excluding Scottish Highlands) for goods shipped to Amazon Fulfillment Centres, with ongoing network expansion.[3] Amazon has also expanded its logistics network to include over 300 sea routes across Europe, facilitating the transport of products from UK sellers to Amazon's European buildings.[28][29] Amazon has announced an investment in the United Kingdom over a multi-year period, which includes opening new fulfillment centers and upgrading existing logistics sites.[30] This investment is projected to create thousands of new permanent, full-time jobs, primarily outside of London and the South East.[30]

European Union (EU)

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Amazon Freight's FTL services in the EU extend between Germany (except islands), Poland, Czech Republic, Italy, Spain, Belgium, Netherlands, and Luxembourg.[3] LTL coverage is also available for goods shipped to Amazon Fulfillment Centres in these regions, with ongoing network expansion.[3] The expansion of sea routes across Europe, including partnerships with shipping and logistics firms like DFDS, supports efficient and less carbon-intensive freight transport from the UK to various EU destinations.[28][29] Amazon has announced plans to invest in Germany to support the expansion of its logistics network and cloud infrastructure, including new fulfillment centers and job creation.[22] Amazon is also investing to electrify and decarbonize its transportation network across Europe, including the deployment of electric heavy goods vehicles (eHGVs) from Mercedes-Benz Trucks for middle-mile routes in the UK and Germany.[22][31][32]

Integration within Amazon's Logistics Ecosystem

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Amazon Freight operates as an integrated component within Amazon's broader logistics and transportation ecosystem. This integration is central to Amazon's strategy of providing end-to-end supply chain solutions and leveraging its network for both internal needs and third-party services.

  • Synergy with Fulfillment Services: Amazon Freight's FTL and LTL services transport goods to and from Amazon's Fulfillment Centers (FCs).[3] LTL services are designed for inbound freight to Amazon FCs in the UK and EU, supporting replenishment of inventory for Fulfillment by Amazon (FBA) and Multi-Channel Fulfillment (MCF) programs.[3][3] MCF, which allows businesses to use Amazon's fulfillment network for orders from non-Amazon sales channels, utilizes Amazon Freight to move inventory into Amazon's warehouses, where it can then be processed and shipped by Amazon's logistics network.[26]
  • Collaboration with Partner Programs: Amazon Freight's operations are connected with its partner programs. The Amazon Relay platform, a digital load board, provides independent carriers with access to Amazon Freight loads, including "power-only" and "Drop & Hook" opportunities, contributing to consistent freight movement and optimized truck utilization.[14][3] The Amazon Freight Partner (AFP) program directly supports Amazon Freight's capacity by enabling entrepreneurs to operate Amazon-branded trucks exclusively for Amazon freight, moving goods between warehouses and delivery stations.[23][24]
  • Connection to Last-Mile and Air Cargo: While Amazon Freight primarily handles middle-mile and long-haul transportation, it connects with Amazon's last-mile delivery capabilities, such as Amazon Shipping, which handles parcel delivery directly to customers.[9] For expedited shipments, Amazon Freight's ground network can feed into or receive from Amazon Air Cargo, which operates a fleet of over 100 aircraft for air transport.[9][11] Amazon Air Cargo itself offers capacity to third-party shippers, reflecting a broader strategy of monetizing all segments of its logistics chain.[33]
  • Foundation for Supply Chain by Amazon: The "Supply Chain by Amazon" service represents a key integration point. It unifies Amazon Freight's transportation services (FTL, LTL, Intermodal) with Amazon's global logistics infrastructure, including warehousing (Amazon Warehousing and Distribution) and fulfillment (FBA, MCF), into a single, managed solution.[27] This end-to-end offering allows Amazon to manage products from manufacturing facilities worldwide to final customer delivery, demonstrating an integrated logistics ecosystem where Amazon Freight plays a foundational role in the movement of goods across various stages of the supply chain.[27]
  • Technological Interoperability: The integration across these various Amazon logistics entities is facilitated by a shared technological backbone.[34] Real-time tracking, AI-driven optimization, and digital integration via APIs, EDI, and TMS systems aim to ensure that data flows efficiently across Amazon Freight, Amazon Relay, fulfillment centers, and other logistics components, enabling coordinated operations and end-to-end visibility for shippers.[6][9][35][34] This integrated approach allows Amazon to offer a scalable, efficient, and technologically supported logistics solution that aims to reduce costs and influence service quality for businesses utilizing its network.

Business Model

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Amazon Freight operates within Amazon's broader logistics strategy, characterized by investments, a flexible hybrid asset approach, and a focus on long-term growth and market influence.

Amazon's approach to its transportation assets incorporates a hybrid asset-light/asset-heavy model. The company owns a fleet of over 70,000 trailers and 24,000 containers (asset-heavy component), which provides it with direct control over a portion of its transportation capacity.[6][9] This control can contribute to operational efficiency and may influence pricing.[6] Simultaneously, it utilizes partner programs such as Amazon Relay (a digital load board for independent carriers) and the Amazon Freight Partner program (where entrepreneurs operate Amazon-branded trucks) as asset-light components.[14][23][24] This hybrid model aims to achieve scalability and flexibility, allowing Amazon to adapt to fluctuating demand and expand its reach without solely relying on capital-intensive asset ownership.[6][9] The AFP program, for instance, provides a structure that aims to lower startup barriers for entrepreneurs by providing trucks and covering operational costs, while Amazon benefits from increased capacity and network density.[23][24]

The externalization of Amazon's internal logistics capabilities into services like Amazon Freight represents a strategic move to monetize excess capacity and improve the utilization of its infrastructure.[6] By offering its logistics services to third-party businesses, Amazon generates revenue from assets and systems initially developed for its own e-commerce operations.[6] This approach also contributes to building network density and efficiency, which can benefit both internal and external freight movements.

Amazon Freight offers spot and contract rates, with pricing viewable throughout the booking process.[4][3]

Amazon continues to make investments in its logistics infrastructure. The company has incurred substantial capital investments in its logistics network.[7] More recently, Amazon has announced investment commitments to expand its rural delivery network, including building new delivery stations.[7] These investments support the expansion of Amazon Freight's service offerings and its overall market presence.

Amazon's long-term strategy includes becoming a global supply chain orchestrator, offering a managed service from manufacturers to customers worldwide.[27] This comprehensive approach aims to reduce seller costs and influence sales by creating an integrated logistics ecosystem.[27] The company's commitment to sustainability, evidenced by its Climate Pledge and efforts to reduce empty miles through network optimization, also plays a role in its strategic positioning.[22][31][32]

Logistics Industry Impact

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Amazon Freight's expansion has impacted the broader logistics industry, influencing competitive dynamics, technology adoption, and customer expectations.

The "Amazon Effect" describes how Amazon's innovations, such as Prime two-day delivery, have influenced consumer expectations for shipping speed, cost, and transparency.[2][36] These heightened expectations have extended beyond direct consumers to the business-to-business (B2B) sector, affecting logistics providers who face pressure to offer faster delivery, lower prices, real-time tracking, and self-service options.[36] Shippers surveyed by Amazon explicitly rate "advanced data security," Application Programming Interfaces (APIs), and "shipment tracking and visibility tools" as essential requirements.[35]

The company's entry into the for-hire LTL market is expected to affect pricing for incumbent carriers, particularly in a segment that has experienced weak demand and low volumes.[16]

Amazon's competitive advantages stem from its scale, advanced technology, integrated network, data analytics capabilities, and economies of scale.[37] This has led traditional carriers and freight forwarders to adapt their strategies and invest in technology.[30] Competitors are increasingly focusing on:

  • Technology Adoption: Investing in AI, machine learning, and automation to optimize operations, improve efficiency, and enhance visibility for customers.[34] Digital logistics platforms are becoming more prevalent to streamline complex processes and offer integrated services.[30]
  • Service Innovation: Developing new service offerings and expanding existing ones, such as weekend delivery services, to match evolving customer demands.
  • Specialization and Partnerships: Some traditional logistics providers are focusing on niche markets or specialized transport, or forming joint ventures and partnerships to improve competitiveness and expand infrastructure.[30]
  • Customer Focus and Diversification: Emphasizing customer service, tailored solutions, and diversifying service offerings beyond traditional logistics to open new revenue streams.[30]

A development illustrating the evolving competitive dynamics is UPS's announced plan to reduce its shipping volumes for Amazon. This decision aligns with UPS's strategy to prioritize other business segments and reflects ongoing shifts in relationships between large shippers and carriers.[38] Amazon's technology-driven approach and its transparent pricing model are influencing digital transformation across the logistics industry, with the aim of promoting greater efficiency and transparency.[30]

References

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  1. ^ a b c d e "Amazon Freight — A New Disruptor in the U.S. Freight Brokerage Market". GEP. 2025. Retrieved 24 July 2025.
  2. ^ a b c d "A Q&A with Amazon Freight's new General Manager, Ari Silkey". Amazon Freight. 2025. Retrieved 24 July 2025.
  3. ^ a b c d e f g h i j k l m "Amazon Freight: Freight Shipping & Cargo Transportation Services". Amazon Freight UK Official Website. Retrieved 24 July 2025.
  4. ^ a b c "Freight Shipping & Cargo Transportation Services". Amazon Freight Germany Official Website. Retrieved 24 July 2025.
  5. ^ a b "Amazon's LTL Expansion: What It Means for the Industry". MyFBAPrep.com. 2024. Retrieved 24 July 2025.
  6. ^ a b c d e f g h i j k l m n o "Amazon Freight". Amazon Freight Official Website. Retrieved 24 July 2025.
  7. ^ a b c d e f g h i j k l m n o "A Timeline of Amazon's Shipping and Fulfillment Evolution". Bringg. 2025. Retrieved 24 July 2025.
  8. ^ "Amazon Delivery Service Partner Program - DSP". Amazon Logistics. 2025. Retrieved 24 July 2025.
  9. ^ a b c d e f g h i j k "Amazon Transportation Services". Amazon.com. Retrieved 24 July 2025.
  10. ^ "Everything you need to know about Amazon's electric delivery vans from Rivian". About Amazon. 2025. Retrieved 24 July 2025.
  11. ^ a b c d e "Amazon Air Cargo". Amazon Air Cargo Official Website. Retrieved 24 July 2025.
  12. ^ "What is Full Truckload (FTL) Shipping?". Amazon Freight Blog. Retrieved 24 July 2025.
  13. ^ a b c "FTL vs. LTL: Choosing the Right Freight Shipping Method". AMZ Advisers. 2023. Retrieved 24 July 2025.
  14. ^ a b c d e f g h "Amazon Relay". Amazon Relay. 2025. Retrieved 24 July 2025. Load board & trucking contracts for carriers
  15. ^ a b c "Amazon's LTL Expansion: What It Means for the Industry". FreightWaves. 2024. Retrieved 24 July 2025.
  16. ^ a b "LTL Industry Outlook: Weak Demand, Pricing Pressure, and Amazon's Entry". Journal of Commerce. 2024. Retrieved 24 July 2025.
  17. ^ "What is the Difference Between LTL and FTL Freight Shipping?". DCL Logistics. 2023. Retrieved 24 July 2025.
  18. ^ "What is First Mile, Middle Mile, and Last Mile Delivery?". Onfleet. 2025. Retrieved 24 July 2025.
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  20. ^ "An analysis of operating efficiency and policy implications in last-mile transportation following Amazon's integration". Arizona State University. 2025. Retrieved 24 July 2025.
  21. ^ a b "Cargo freight forwarding services made easy with Amazon Freight". Amazon EU. 2025. Retrieved 24 July 2025.
  22. ^ a b c d "Amazon's €1 billion investment to electrify its European transportation network". About Amazon EU. 2022. Retrieved 24 July 2025.
  23. ^ a b c d e f "Amazon Freight Partner Program". Amazon Freight Partner Official Website. 2025. Retrieved 24 July 2025.
  24. ^ a b c d "Becoming an Amazon Freight Partner: An Entrepreneur's Guide". About Amazon EU. 2023. Retrieved 24 July 2025.
  25. ^ a b "Start Your Trucking Company As An Amazon Freight Partner". Amazon Freight Partner. 2025. Retrieved 24 July 2025.
  26. ^ a b c d "Multi-Channel Fulfillment (MCF)". Amazon Seller Central. Retrieved 24 July 2025.
  27. ^ a b c d e f g "Supply Chain by Amazon". Amazon Seller Central. Retrieved 24 July 2025.
  28. ^ a b "Amazon has over 300 sea routes across Europe to get your products where they need to go". About Amazon UK. 2024. Retrieved 24 July 2025.
  29. ^ a b "Amazon's EU logistics network: How it helps sellers succeed". Amazon Seller Central EU. 2024. Retrieved 24 July 2025.
  30. ^ a b c d e f g "Amazon offers innovative freight transportation solutions". FreightWaves. 2025. Retrieved 24 July 2025.
  31. ^ a b "Amazon to Invest Over $1 Billion to Decarbonize Deliveries in Europe". ESG Today. 2025. Retrieved 24 July 2025.
  32. ^ a b "Amazon's $1 Billion Move Towards Net Zero: Logistics Electrification Across Europe". Carbon Credits. 2025. Retrieved 24 July 2025.
  33. ^ "Amazon airline sells excess cargo capacity to third-party shippers". FreightWaves. 2024. Retrieved 24 July 2025.
  34. ^ a b c "How Amazon Uses AI to Power Its Logistics Network". Economic Times. 2024. Retrieved 24 July 2025.
  35. ^ a b "Shipper Survey: What Shippers Want from Their Freight Providers". Amazon Freight White Paper. 2023. Retrieved 24 July 2025.
  36. ^ a b "The Amazon Effect in Freight Forwarding: Navigating New Expectations with Logi-Sys". Logi-Sys. 2025. Retrieved 24 July 2025.
  37. ^ "Amazon's Antitrust Problem". Logistics Viewpoints. 2024. Retrieved 24 July 2025.
  38. ^ "UPS to Cut Amazon Shipping Volumes by Over 50% by 2026". Supply Chain Digital. 2024. Retrieved 24 July 2025.
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