E-commerce is the world in which ... Read More
According to the report, E-commerce actually accounts for about 30% of the parcel market in North America. And the estimate is that Amazon accounts for about 6.5% of the total UPS revenue and 4.7% of the FedEx revenue. Recently, the two companies have made investments in expanding and growing. For example, network optimization and automation, as well as adding new facilities and expanding others. So, these parcel-carrier companies are growing.
However, many reports demonstrate how Amazon is taking control of its own last-mile delivery. They do this with a fleet of at least 4,000 trailers used for transport between warehouses and fulfillment centers. In addition, the company does not own tractors. Instead, they use truckload and LTL carrier partners, 3PL partner capacity, parcel carriers, independent contractors using their own vehicles, or other partnerships for their transportation. By the end of this year, they expect Amazon will have a fleet of 20,000 vans.
According to Armstrong, this “allows Amazon to expand delivery days and hours.” Essentially, “Amazon could push the envelope and put pressure on its competitors with its own delivery schedule.” And, with Amazon’s plans to go even further with deliveries – bringing packages inside the homes and not just to the door, they are pushing the competition even further. Perhaps FedEx and UPS should be aware of this for the future. However, Armstrong believes that it is still unlikely for Amazon to fully rival the big ground capabilities of the two big competitors at this time.
But… 3PLs may face harsher competition with Amazon. According to Armstrong’s report, Amazon is essentially acting like a 3PL for 12% of e-commerce shipments that are business-to-consumer. In fact, more than half of the units sold through Amazon come from third-party sellers on their marketplace. And, about half of those sellers use Amazon’s Fulfillment program.
As this continues and the third-party market on Amazon grows, the company becomes more aggressive for competitors. Only time will tell if Amazon will come on top when it comes to 3PLs and parcel carriers in the industry. What do you think of Amazon’s role in the industry?
SACRAMENTO COUNTY, CA – There was commotion on I-5 after a bi... Read More
Traffic slowed and backed up on northbound I-5, just past Twin Cities Road, within Sacramento County. This information comes from reports from the California Highway Patrol.
Emergency personnel received reports of the big rig fire at about 4:30 in the morning. Then, the semi-truck was immersed in flames when the emergency crews arrived on the scene. Luckily, no injuries resulted from the fire. And, the driver was able to unhook the rig from the truck.
However, due to the fire, the driver did lose most of the cargo in the wreck. Apparently, he was hauling several pallets of salmon, as well as rub seasoning. It was almost all destroyed in the fire. This loss of resources and time will likely set the driver back on his schedule.
Morning commuters had to face the consequences as well. Even after extinguishing the fire, emergency crews shut down the right lane of traffic. As a result, this remained closed for multiple hours after the fire, while they cleaned up debris and moved the semi-truck out of the way. The crew did not give an estimated time for how long the lane would remain blocked.
But, despite the inconvenience to all involved, no permanent injuries result, which is the best-case scenario after a dangerous incident such as this. The lanes should be back up and running as normal for the remainder of the day.