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Amazon’s ‘Insourcing’ Roils Freight Industry, Analysts Say

Posted February 21, 2019

Under Economic Issues, Logistics & Supply Chain Issues

(Daniel P. Bearth – Transport Topics) Inc.’s role in the shuttering of New England Motor Freight and the “body blow” dealt to XPO Logistics Inc. is raising alarms for trucking and logistics firms that do business with, or compete against, the popular online retailer.

“Amazon’s freight will put you out of business if you are not prepared to handle it,” declared Brian Fielkow, CEO of Jetco Delivery in Houston, after hearing about the bankruptcy filed Feb. 11 by New England Motor Freight, an Elizabeth, N.J.-based regional less-than-truckload carrier that did a lot of business with Amazon and other big-box retailers.

“It’s the bright shiny object that makes headlines,” Fielkow said about Amazon shipments. “That type of work does not fit our business model. We would never, ever touch it.” Click here to read more.