So while the headlines about Amazon’s


delivery service sinking other package delivery carriers may seem far-fetched, the impact of internet retailers responding to the demands for faster and smaller deliveries is real. How will the networks have to split an order


to still get efficiencies? Williams predicts that the networks are


going to shift in some way, but he is hesitant to say how. “I don’t know exactly how. I think that to maintain efficiency, those retailers and transportation companies have to collaborate and actually have to share data.”


FASTER ISN’T FREE During Christmas of 2013, peak shipping


season, disappointed Amazon customers found that thousands of packages wouldn’t be delivered until December 26. Even if the packages contained horseshoes or hand grenades, almost on time really doesn’t count on Christmas morning. Analysts speculated that when Amazon’s


carriers couldn’t keep up with demand during its peak, it was inevitable that new solutions


WANTS US TO ASK IS “WHAT IS GOING ON IN RETAIL RIGHT NOW AS AN


INDUSTRY THAT IS GOING TO CHANGE THE TRUCKING BUSINESS?”


would have to be found. Covenant Transportation Group executives


commented in January on news that Amazon was acquiring its own trailers. Te company works closely with Amazon, specializing in expedited shipments. “Tey’re growing so dramatically that it’s


hard for anybody to keep up with what they are doing in the marketplace,” said Joey Hogan, Covenant’s CEO, on the company’s quarterly earnings call. “Tey need every truck they can get their hands on.” Doug Voss, associate professor at the


University of Central Arkansas, explains that or All of Your Commer


there are two reasons to start a private fleet: 1) the company has enough volume to do its shipping cheaper and/or 2) the company has strict enough service needs that existing carriers can’t meet those needs. As Amazon continues to add subscribers to


its Prime service, more customers are promised free two-day shipping on a large percentage of the website’s offerings. Consumer Intelligence Research Partners reported the number of Amazon Prime memberships increased 35 percent in 2015 to a total of 54 million, almost half of American households.


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