(Note: This is an updated version of a story that was published on Friday. After the original story appeared, FreightWaves received clarifying information from sources close to XPO that differed materially from the original version. FreightWaves regrets any confusion).
As of Monday, XPO Logistics Inc. will no longer accept inbound LTL shipments on one of its lanes in Albany, N.Y. and destined for Amazon.com Inc. warehouses in New York’s capital city, a source close to XPO said Saturday.
A memo obtained Friday by FreightWaves did not specify a particular market where the ban would be imposed, only instructing employees to stop directing “Amazon-routed freight” through the carrier’s LTL network. The memo came from Mario A. Garza, XPO’s (NYSE:XPO) LTL national 3PL account executive, a sign that XPO’s action was directed at third-party logistics providers that consolidate shipper traffic and tender it to XPO for delivery to Amazon’s (NASDAQ:AMZN) warehouses.
The source said the company will send a note to 3PLs clarifying the extent of the ban. XPO had not responded to an e-mail query on Friday to comment on the memo.
LTL carriers like XPO move a large amount of freight to Amazon’s distribution centers. However, the process sucks up a lot of LTL trailer capacity, and equipment can sit for days at Amazon’s locations before its unloaded, according to an industry executive who requested anonymity. The general issue is not foreign to shippers and carriers hauling inbound freight to Amazon locations, the executive said.
Shippers may pre-pay the freight charges directly to the carrier, or retailers will compensate the carrier. Typically, a direct pre-pay from the shipper is more profitable for the carrier, the executive said. However, 3PLs may be using their volume clout to dilute XPO’s margins, which may have led to Friday’s decision, the executive said.
LTL networks have been buffeted by soaring domestic demand as well as knock-on effects of the escalating congestion problems at U.S. ports, particularly on the West Coast.
Oliver Thomasson
Warehousing Amazon freight is one of the things that hurt NEMF
Trucker 53
They need to do what others do: dedicated accounts using carrier/contractor tractors and Amazon trailers, inbound and out. Then they can do whatever they want with their trailers, including indefinite term warehousing. They are a big enough fish to change the scene however they want, including empty trailer transit fees for shippers if needed. That makes huge amounts of storage liquid, they can put it anywhere.
Ron Hill
Trucking honchos get big and make decisions like we don’t need this! Then run them over with a buss. Without thinking that those customers on their Amazon trailers are customers of there own in a different way.
Why not charge detention time, a lot of money there.
But, if they just now started thier trucking company, they would be begging for the Amazon freight, with rediculous freight discounts and hold my equipment up all you want.
If they are charging Amazon full visible capacity, exclusive use, detention on equipment, bucks are rolling in and Amazon will pay it. XPO must not be using the tariff as it is intended for.
Keith Klassen
This is the most pathetic company I have ever used. They had forklift holes along with two sides ripped open on my marked High Expense/Handle with care shipment. One from top to bottom. Plus their deliver date was being moved to 5 days later than promised so I had to drive 154 miles round trip to pick it up. They refuse to reimburse me for the minimum of $195.00 I was promised before driving to picking it up. I would advise anyone who needs shipment of high end products to find a more trusting trucking firm.
LTL Shipper
XPO is a horrible ltl company anyway so I doubt Amazon really cares. Constantly loosing freight, and requesting BOLS regularly. Damages are ridiculous with them. Their volume is driven by their cheap rates only.
Mfd
XPO is a terrible freight company!
1) They deliver for Lowes. I paid 90.00 for delivery 2 miles from the store. XPO refused to bring my purchase into my residence…until I offered a large gratuity.
2) Again…ordered a stove from Lowes. XPO arranged for a day and time for delivery in Jun 2021.No show. When I contacted XPO they had my delivery for Oct 2021. NEVER EVER TRUST THEM!!!
Chad
I think you’re blaming the freight company when you need to blame China. ALL OF OUR APPLIANCES are made there and China locks down everything when they see a case of this disease 🦠 they made and gave to the world. I waited 6 months for a regular oven I purchased at Lowe’s. Wasn’t Lowe’s fault. They didn’t make the choice to have every American consumer good made in China. Write and call your legislators. We have to start “Made in America” again.
E
That’s not XPO, they just use the name. There are a lot of fly by night guys who did it and gives the company a bad name.
Tcs53
Amazon uses the carriers trailers for warehousing. A trailer can sit loaded for days if not weeks. Walmart used to do the same thing. If that trailer isn’t rolling it doesn’t make money.
Stephen Webster
Same problem at many food distribution centers not enough space in both the U S east coast and the G T A and surrounding areas in Ontario Canada. We need a plan to build much more warehousing with housing and large truck parking areas within a a distance that can be walked in 10 minutes
I seen a plan to build 3 larger warehousing projects with truck stops and apartment towers in Ontario Canada but delayed zoning stopped them 3 years ago.
RICHARD DESROCHES
Old Dominion will pick this up, watch.