February 25, 2019 – Amazon continues to create headlines as New England Motor Freight (which declared bankruptcy on Feb. 11th) and XPO Logistics Inc. (which recently lost a big customer rumoured to be Amazon resulting in a US$600 million loss in revenue) have found out recently. And for most observers, the decision to terminate that much business simply confirms the long-held expectation that Amazon is ready to go head-to-head with for-hire freight carriers and third-party logistics companies and to handle more of its shipping needs in house. Amazon’s official stance is that they will continue to expand Amazon’s logistics and delivery capability because while they have great third-party partners in the transportation space, they like the ability to participate in transportation because a lot of times they can do it at the same cost or better. They can also invest selectively because they have more perfect information; they know where they’re moving things between warehouses and sort centers and by not involving third parties all the time, they can find ways to extend order cutoffs. Amazon has been working hard at developing its own capabilities to eliminate transportation brokers and middlemen whenever possible and comes as no surprise to us here at Canaan Transport. This is why we have been providing our customers with alternatives for their e-commerce fulfillment activities. Please contact us to find out more!