Amazon Launches Less-Than-Truckload (LTL) Service in the U.S.

By Ken Miller, Senior Transport Journalist

Amazon has introduced a less-than-truckload (LTL) shipping service through its Amazon Freight platform for customers sending freight to its fulfillment centers, according to a news release dated April 4. This service is designed as a cost-effective solution for vendors who cannot fill a full trailer.

The LTL offering is currently limited to inbound deliveries to Amazon facilities, where goods will be stored before being shipped through the company’s regular package delivery network. Unlike traditional hub-and-spoke LTL networks, which involve palletized shipments being picked up, cross-docked, and delivered to various final destinations, Amazon’s service focuses solely on moving goods to its distribution centers.

Customers can access the new service via the Amazon Freight portal, which provides quotes for shipments up to 14 days in advance. The platform allows users to compare full truckload (FTL) and LTL options side by side, track their shipment statuses, and manage billing and invoicing. The LTL service boasts access to a fleet of over 60,000 trailers and 20,000 intermodal containers, enhancing Amazon’s logistics capabilities across the U.S.

“We have been listening closely to our customers and understand their desire to have more ways to move their freight,” said Ari Silkey, general manager at Amazon Freight. “With LTL, they are now getting access to Amazon’s trusted infrastructure and cutting-edge technology to move more of their loads into Amazon’s fulfillment centers.” This statement was circulated via email to customers, though the accompanying news release was dated Friday, April 4.

Market Context:

Amazon’s entry into the LTL market aligns with its broader strategy to enhance its logistics capabilities and compete more effectively in the freight industry. Reports have recently surfaced indicating that Amazon has been actively hiring LTL personnel to strengthen its position in the sector. However, the current LTL offering is not available outside Amazon’s network, meaning shippers cannot send freight directly to their customers.

“At this time, Amazon Freight LTL is only available to customers shipping inbound to Amazon’s fulfillment centers,” the statement concluded. “However, we are constantly evaluating our lanes and services to meet shippers’ changing needs.”

The introduction of LTL services is a significant development for Amazon and reflects ongoing trends in the shipping industry. With increasing demand for more flexible shipping options, businesses are seeking efficient ways to transport goods without committing to full truckloads. This shift is particularly relevant as e-commerce continues to grow, requiring more agile logistics solutions.

Amazon’s LTL offering builds on its previous success in international markets, including the launch of similar programs in Germany and the United Kingdom. This global experience positions Amazon to leverage best practices and technology in its U.S. operations, enhancing its ability to meet customer needs.

As the logistics landscape evolves, Amazon’s expansion into LTL services could provide a competitive edge in a crowded market. Currently, the U.S. LTL service is limited to shipments heading to Amazon’s fulfillment centers, but the company plans to continually assess customer needs regarding this new offering.

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