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Mar 22, 2016

* USA TRUCK FREIGHT MARKET 2016

* California - Amazon use ELDs to weigh on US trucking this year

-- The U.S. trucking market entered 2016 quietly. Companies weren’t scrambling to find freight to put on empty trucks, but they also weren’t overwhelmed by volumes. Margins did show improvement, mainly because of gains made in the first half of the year as tight capacity remnants from 2014 allowed companies to secure significant rate increases... Amazon’s influence over the U.S. trucking industry has become so large that nearly every one of the 25 largest LTL carriers, as well as many of the nation’s largest truckload carriers and intermodal marketing companies, does business directly with the company or for one its suppliers. This is reflected in 2015 results as the growth of some Top 25 LTL carriers was likely fueled by the increasing transportation spend of the e-commerce titan. With such a market penetration, any abrupt shift in Amazon’s transportation strategy, and its more than $8 billion in domestic transportation spend, could cause ripples throughout the trucking industry... As with any storm, those that are about to be hit by the tumultuous weather should prepare in advance. Freight volumes are seemingly stable in early 2016 and pricing is still rational, so the current calm is the ideal environment for carriers to ready themselves for major industry changes... 
CAL, USA - JOC, by Michael Scheid - Mar 19, 2016

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