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Josh Rickards, a truck driver based in Arizona, hauls Amazon loads from time to time.
But the past few months, Rickards hasn’t been working for the Seattle-based megaretailer. Trucking rates have boomed this summer. The last week of August, research firm Cowen saw retailers and manufacturers paying 29% more on average in the spot market — where trucking loads are tendered on-demand, rather than through a contract.
Rickards told Business Insider that he’s been scoring loads with unusually high pay rates, like $6 a mile for a dry van load. And, from his experience, Amazon hasn’t kept up with the uptick in pay.
Amazon’s rapidly-expanding transportation network depends on drivers like Rickards, whose company has only four trucks. But, in recent weeks, some of these small business owners, called owner-operators, are choosing to go into the spot market rather than to continue to work for Amazon.
Amazon is asking the biggest truckers in America for help
That means Amazon has had to look elsewhere for partners in delivering your orders. Executives at three large, public trucking companies told Business Insider that Amazon has significantly increased their demand for truck capacity in recent weeks. All three requested anonymity.
An Amazon spokesperson said the company works with a variety of types of trucking companies, including owner-operators, small and medium-sized trucking companies, and larger firms.
“We work with many small and medium-sized line haul service providers in our transportation network, the majority of which provide dedicated capacity for our network needs, and have long utilized them to carry loads for Amazon,” an Amazon spokesperson told Business Insider.
“We also balance remaining capacity needs within our network by offering carriers of all sizes different contract options so that we can serve Amazon demand, while providing carriers with work to drive their business growth,” the spokesperson said.
Amazon is asking these large …read more
Source:: Business Insider