Amazon cuts ties with more delivery providers

Amazon is severing ties with more logistics companies.

More than 1,700 delivery drivers who work for small logistics companies in the Northeast found out in early August that they will lose their jobs over the next few months, though Inc. (NASDAQ: AMZN) said the drivers will have opportunities for other positions with its delivery partners.

The latest purge comes a few months after more than 1,300 delivery drivers were notified in February that Amazon was severing ties to their logistics companies.

“We work with a variety of carrier partners to get packages to Amazon customers and we regularly evaluate our partnerships,” an Amazon spokesperson told FreightWaves. “We have ended relationships with some partners, and Amazon is working closely with all impacted drivers to ensure they find opportunities to deliver Amazon packages with other local delivery service partners with little to no disruption to pay.”

TL Transportation LLC

TL Transportation LLC, headquartered in Annapolis, Maryland, is laying off 226 delivery drivers after losing its contract to haul Amazon freight. The drivers worked at Amazon’s delivery centers in Rochester, New York; Philadelphia; and Rockville, Maryland. Layoffs are scheduled to start on Oct. 15 in Maryland, Oct. 30 in Pennsylvania and Nov. 7 in New York.

The trucking company, which is owned by Legal Courier Inc., doing business as Translogistix, has been named in a lawsuit, along with and Amazon Logistics, after one of TL Transportation’s drivers allegedly got into a physical altercation with a New Jersey homeowner.

According to the lawsuit filed on March 11, John Callahan of Gloucester City, New Jersey, flagged down Aaron Brown, a TL Transportation driver who was delivering Amazon packages, for “excessive speed” through a neighborhood with small children playing outside in March 2018.

Callahan claims in his suit that Brown began yelling and cursing at him and then “violently struck” him on the left side of his head. The altercation caused Callahan “serious, painful and permanent personal injuries,” according to court filings.

An Amazon spokesperson declined to comment on whether the lawsuit played a factor in the company’s decision to cut ties with TL Transportation.

Herschel Lowe, listed as the managing member of TL Transportation, did not return FreightWaves’ telephone call seeking comment.

Thruway Direct

Allpoints Trucking and Courier Service, doing business as Thruway Direct, is laying off 444 delivery drivers. Of that number, 240 delivery drivers and employees worked at two Amazon distribution centers in Rochester and Bethpage, New York. The layoffs in New York will go into effect on October 30. The company will lay off an additional 204 drivers on Oct. 2 at Amazon delivery stations in Philadelphia, Langhorne and King of Prussia, Pennsylvania.

Esteban de Leon, president of Thruway Direct, did not respond to FreightWaves’ request for comment.

Courier Distribution Systems

Courier Distribution Systems, a delivery company based in Duluth, Georgia, is laying off 273 drivers, including 178 who work in Pennsylvania, and 95 will be laid off on Oct. 10 in Sussex, Wisconsin.

Systemize Logistics LLC

Systemize Logistics LLC, headquartered in Stoughton, Massachusetts, will lay off around 192 delivery drivers in three states. Of that number, 68 drivers and employees who also work at the Amazon distribution center in Rochester, New York, will lose their jobs on Oct. 24, as well as an additional 53 drivers at the Amazon delivery station in Bristol, Connecticut, and 71 drivers in Milford, Massachusetts.

In its WARN notice, the logistics company cited “non-renewal of contract with Amazon to provide delivery services” as the reason for the driver layoffs. 

Sheffield Express LLC

Another trucking company, Sheffield Express LLC, headquartered in Milford, issued a WARN notice in late July, notifying 95 delivery drivers that its contract with Amazon ends on Sept. 30. The delivery drivers worked at Amazon’s delivery station in Bristol.

John Riley, owner of Sheffield Express, did not respond to FreightWaves’ telephone request for comment.

Prime EFS

Last-mile delivery company Prime EFS, headquartered in Hasbrouck Heights, New Jersey, is laying off 388 delivery drivers. Around 274 drivers will be let go in New Jersey. The company will also cut ties with 114 delivery drivers in Langhorne. The layoffs will take effect on Oct. 3. 

JST Transportation

Amazon is ending its delivery partnership with JST Transportation, forcing the company to lay off 51 employees and drivers who hauled freight from Amazon’s distribution center in Milford on Sept. 29.

Deliverol Global

Deliverol Global, headquartered in Duluth, Georgia, eliminated 41 delivery driver jobs at the Amazon delivery center in Langhorne. Those drivers were laid off last Friday. 

Amazon also cut ties with delivery partners in February

Approximately 1,300 delivery drivers across the country who worked for small and medium-size logistics companies that contract with found out in mid-February they would lose their jobs in April, though Amazon said they will have opportunities for other positions with its partners. 

In February, an Amazon spokesperson cited a range of issues in its decision to cut ties with some logistics providers.

“Prior to launching the Delivery Service Partner program to empower entrepreneurs to build their businesses with Amazon, we contracted with a number of small logistics companies,” a spokeswoman said. “Some of these companies have not met our bar for safety, performance or working conditions, and we’re in the process of exiting them from the program.

The spokeswoman said there will be little impact on the drivers, as they can move into other positions with Amazon partners.

“We are planning for there to be zero or very little net job loss in these communities because nearly all impacted employees of these companies will have an opportunity to move into other delivery driver roles with Amazon partners,” she said.