[CNBC] Bezos-backed freight firm Convoy shuts down after slashing hundreds of jobs

Interesting article, they’re saying there’s a “massive freight recession” right now. What’s also interesting about this is Bezos invested in this company, and the CEO is a former Amazon exec. If they survived they probably would be handling FBA freight shipments at some point.

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Interesting considering Amazon can’t get out of their own way with LTL right not to FBA.

To be clear, Convoy was a software middle man between carriers and shippers, arranging logistics–not a company of truckers–“the uber of shipping”.

Seems a bit like a market correction?

Another source: Convoy trucking startup - hailed as 'Uber for freight' and backed by Bill Gates and Jeff Bezos -  shutters due to 'massive freight recession' | Daily Mail Online.

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Moved to Amazon News & Announcements , reformatted title

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I’ve seen a number of stories about the slowdown in freight and the number of defaults on trucks and trailers by independent operators after the Covid explosion settled down.

We just shut everything down and took 4 days off to try and see some Fall Color. Figures that three days would be overcast and sprinkles again this years.

What we did see over the course of about 1000 miles of travel through a lot of back roads and major highways was a very large number of smaller trucking companies ALL looking for drivers. They included those looking for company drivers as well as those looking for owner/operators.

I suspect that the big guys that kept adding to their fleets with acquisitions may be hurting more than some of the smaller companies that can be more flexible.

Amazon is almost the definition of NOT flexible by nature unless it is a result of bending over backward to help out their ‘offshore’ most favored nation customers – ‘generic’ now the latest scorched earth offering to the PRC/CPC.

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I would agree that smaller trucking companies and owner/operators are gaining in the industry. For example, at the office I worked in before retiring, we auctioned off our surplus vehicles. Most high bidders picked up the vehicles themselves but a few bidders would hire a trucker to pick up and deliver the vehicle across country. This was a small, one-time only, point to point job. Big trucking companies aren’t interested in small jobs like that. They make their money from big, consistent contracts. But those type contracts are getting fewer and far between.

Another problem with big trucking companies is that they will give their truckers jobs and/or routes that require them to be gone 1-2 weeks at a time. Most people don’t like to be gone away from their families for that long on a regular basis. Small, independent truckers can pick and choose jobs that allow them to spend more time with their families.

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Small independent truckers are frightened that California regulations will put them out of business. Especially with the drop of in volume.

Ocean freight is far worse off than trucking. Cost of shipments and volume has dropped.

If transportation costs and volume are down at the same time as fuel is high, what does that say for the economy?

Perhaps the metrics being used by economists are not relevant to economic well being.

An article in today’s WSJ suggested that the current bull market does not meet past behavior of bull markets.

Maybe the overall feeling of the public is more accurate than the experts.

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