How to Haul for Amazon Relay as a New Motor Carrier (2024)

Starting a business and want to haul for Amazon? Amazon Relay wants you to be in business for 6 months before driving for them.

If you’ve got the vision to start a trucking company and want to haul for Amazon (Relay) on day one, there are important requirements you need to know about!

You heard that right. New carriers cannot lease a box truck one day and start hauling for Amazon the next.

Their FAQ page states one of their requirements: You must have “a DOT number, with interstate authority and that has beenactive for minimum of 180 days, and a valid MC number.”

So, what can you do?

What do I do for the first 6 months?

The choices you make from this point forward greatly impact your startup cashflow, growth timeline, and large future payment dates.

Remember, expenses can be up to $20,000/month as a startup.

If you are planning to solely drive Amazon Relay freight, one option can save you thousands of dollars on insurance premiums.

Recommendation: Put your insurance policy on your personal vehicle for the first 6 months as you wait to haul for Amazon. Then switch to your commercial vehicle when you are ready.

Also, you need to know that new carriers, which have no safety history yet, can see more affordable insurance premiums if you declare to the insurance company on your application that you are going to operate within a 500-mile radius.

Then after some safe driving and history, you an slowly expand your distance if you want to driver long-haul cargo.

If you are committed to start as a long-haul trucking business, then expect to pay expensive insurance premiums for a couple years.

Recommendation: One of the easiest ways to save thousands of dollars in insurance premiums when you first start your trucking company is the geographical location of your business.In most cases, it is best to avoid major cities or areas susceptible to severe weather.

For example, trucking insurance is expensive in Atlanta, GA. However, a new carrier can save thousands of dollars if they just start the location of their business outside of the city. This includes your garaging address. In general, living in an urban area compared with a rural area can have a major impact on rates. In a metro area where there are more cars on the roads and more traffic, accidents are more likely, pushing rates higher.

If you plan to make changes to your garaging address, it is recommended that you notify your insurance company as soon as possible. Your insurer can make the necessary adjustments to your insurance policy to protect you against possible risks.

If you are committed to start as a long-haul trucking business, then expect to pay expensive insurance premiums for a couple years.

Do you have enough money saved right now?

The biggest reason owner-operators fail is not having enough money saved up before going on their own to manage start-up costs, maintenance emergencies, or lagging payments after finishing a load.

Truck drivers who are looking to go on their own must find a way to start a savings plan where you are regularly setting aside money, at least $200 per month. As you build your savings, you should learnhow to build and use your credit scorefor when you later need to borrow for a truck purchase or repairs.

How much money do truckers need to save before becoming an owner-operator?

Starting your own business has a lot of expenses you should be prepared for, which includes:

  • Paying taxes
  • Start-up licensing and compliance costs
  • Vehicle payments
  • Vehicle maintenance
  • Daily operating expenses (food, fuel, etc.)
  • Commercial Truck Insurance
  • and more

Recommendation: On average, truck expenses alone for a new owner-operator is usually around $15,000-$20,000 per month for a single truck. Before starting out,you should save up at least twice thatto manage the first couple months of your new business.

Ideally, many consultants recommend saving for at least 6 months of operation, which is closer to $100,000.

This advice stems from the biggest issue after starting your new trucking business, dealing with your load payment terms.

Cashflow is the amount of money coming in versus coming out of the company. The issue for owner-operators at the beginning is not having money come in for at least 30 to 45 days after completing their first few loads.

Many trucking companies experience cash flow problems because they don’t charge enough per mile to cover their expenses. If you accept these super low rates, then the shipper assumes they can continue to get away with it. But you are the one moving the product, you are the professional, so make sure you know what your costs and worth are.

Recommendation: The most important thing for you to do for every load is determine your truck freight rate and cost per mile so you can cover your expenses and expected profit.

Just remember that these rates will fluctuate depending on your routes, if you are going in or leaving certain regions, and more.

  • To calculate cost per mile, you need to examine your current expenses and forecast the number of miles you plan to drive this year. Then divide the expenses and profit by the miles.
  • A truck freight rate is a price a shipper or broker will pay you to haul a load. While this sounds simple, these rates per mile can vary significantly depending on the time of year and current fuel prices.
  • The most important number when it comes to calculating truck rates is the number of miles between your starting point and the destination.
  • After distance, you need to know the weight of the shipment. To control costs, you must carefully manage the overall weight loading for your fleet. If you start with a higher rate for heavy loads, even if the shipper negotiates a discount, you will still end up with more total revenue.
  • Lastly, is the shipment density so you know how much room a shipment will take up in your truck. Once you know the weight of the shipment, calculating the shipment density is simple. All you do is divide the cargo weight by its cubic feet.

What are the requirements to carry loads for Amazon Relay?

Amazon Relay enables carriers to tap into the Amazon load board network, technology, and safety-first culture to build and grow your fleet or Amazon owner operator businesses.

To join Amazon’s freight network, you must meet the following minimum requirements:

  • A DOT number, with interstate authority and that has beenactive for minimum of 180 days, and a valid MC number
  • “Carrier” entity type that is “Authorized for Property and for Hire”
  • FMCSA Safety Rating of “Satisfactory,” “None,” or “Not Rated”
  • Behavior Analysis and Safety Improvement Categories (BASIC) scores:
    • Unsafe Driving below 60%
    • HOS Compliance below 60%
    • Vehicle Maintenance below 75%
    • Controlled Substances / Alcohol below 75%
    • Driver Fitness below 75%
  • All required insurance policies including:
    • Commercial General Liability not less than $1,000,000 per occurrence and $2,000,000 in the aggregate
    • Auto Liability not less than $1,000,000 per occurrence, including a trailer replacement coverage of $50,000
    • Cargo coverage of at least $100,000
    • Workers’ compensation insurance in all jurisdictions where your company operates
    • Employer liability not less than $100,000 per occurrence

Are you ready to start and need an insurance quote? We got you covered!

Fill out the information below and we can get a Amazon Relay insurance quick quote started for you.

If you have any questions or concerns, please emailinfo@cnsinsures.com.

How to Haul for Amazon Relay as a New Motor Carrier (2024)

FAQs

How to Haul for Amazon Relay as a New Motor Carrier? ›

How much does an Amazon Relay make? As of Jul 18, 2024, the average annual pay for an Amazon Relay in the United States is $98,903 a year. Just in case you need a simple salary calculator, that works out to be approximately $47.55 an hour. This is the equivalent of $1,901/week or $8,241/month.

How much do Amazon Relay carriers make? ›

How much does an Amazon Relay make? As of Jul 18, 2024, the average annual pay for an Amazon Relay in the United States is $98,903 a year. Just in case you need a simple salary calculator, that works out to be approximately $47.55 an hour. This is the equivalent of $1,901/week or $8,241/month.

What size truck do you need for an Amazon Relay? ›

Amazon Relay Load Types

Truckers can find dry van, reefer, and power-only loads on the platform. Trailers must be either 53' or 28' and box trucks must have interior cargo dimensions of at least 26'x8'x8'.

How long does it take to get approved for Amazon Relay? ›

Once we receive your company's completed application, the application will be approved or rejected within 1-3 weeks. Delays, if any, will be due to validation of insurance information. Amazon urges you to have all data ready prior to applying and reach out to your insurance provider in the event of any delays.

Can anyone do an Amazon Relay? ›

Trucking businesses of any size are eligible for a carrier setup with Relay if they meet our safety, insurance, and other qualifications. Here's what you need to know about becoming a Relay carrier, including how to apply for Relay, so your business can start hauling Amazon loads.

How much does Amazon Relay pay per load per day? ›

How Much Do Amazon Relay Loads Pay? How much Amazon Relay pays per load depends on various factors like the route, distance, weight of the load, etc. In general, Amazon Relay pays $1.21 to $3.09 per mile.

How many trucks do you need to get a contract with Amazon? ›

No, you will start with one to three trucks. Your Business Coach will work with you on a timeline to ramp up to 10 trucks, although there is no guarantee that your company will receive 10 trucks. What costs does Amazon cover?

What insurance is needed for an Amazon Relay? ›

Frequently Asked Questions About Amazon Relay Insurance

Amazon Relay demands a minimum of $1 million in auto liability insurance, at least $100,000 in cargo liability insurance, and adherence to state-mandated workers' compensation insurance.

Do you need a MC for an Amazon Relay? ›

Amazon Relay Mandatory Requirements

These include: Active FMCSA DOT and MC numbers. Authorized for property and for-hire carrier entity type. FMCSA Safety Rating of "Not Rated," "None," or "Satisfactory"

Do I need a CDL to drive an Amazon Relay? ›

You can use a “normal” license to operate a vehicle that weighs less than 26,000 pounds. At Amazon Relay, we do still require a DOT medical card to drive anything commercial, but owner-operators don't have to go through the time and expense of getting a CDL if their box trucks are under the weight limit.

Does Amazon Relay pay for fuel? ›

Working with Amazon means access to all kinds of freight. Here's what we have available for instant booking: Spot freight: Single loads, including rail and port drayage and drop work, that can be booked at the all-in price listed on Relay's load board. The base rate, fuel surcharges, and tolls charges are included.

Is Amazon Relay a contract? ›

Those who know trucking know that if you're not hauling, you're not earning…you're spending money on overhead costs. Keeping the lights on means filling drivers' schedules and keeping trucks moving, and Amazon Relay has contract work that helps business owners do both.

How to get 1099 from Amazon Relay? ›

Will I also get a 1099-MISC form?
  1. Go to https://taxcentral.amazon.com.
  2. Sign in using the email and password associated with your account.
  3. Click View/Edit, and then click Find Forms.
  4. Click Download to download copies of the desired forms.

Does Amazon accept new carriers? ›

New carriers cannot lease a box truck one day and start hauling for Amazon the next. Their FAQ page states one of their requirements: You must have “a DOT number, with interstate authority and that has been active for minimum of 180 days, and a valid MC number.”

How much can you make weekly with Amazon Relay? ›

Amazon Relay Owner Operator Salary
Annual SalaryWeekly Pay
Top Earners$385,000$7,403
75th Percentile$340,000$6,538
Average$228,575$4,395
25th Percentile$125,000$2,403

Does Amazon Relay pay well? ›

How Much Do Amazon Relay Jobs Pay per Year? $70,000 is the 25th percentile. Salaries below this are outliers. $190,500 is the 90th percentile.

How much can I make with a Sprinter van with Amazon? ›

$45k-$66k Amazon Owner Operator Sprinter Van Jobs.

How much can you make with a box truck with Amazon? ›

Amazon Box Truck Owner Operator Salary
Annual SalaryHourly Wage
Top Earners$250,000$120
75th Percentile$150,000$72
Average$114,472$55
25th Percentile$50,000$24

What is the salary of Relay Operations Center in Amazon? ›

The estimated total pay range for a Relay Operation Specialist at Amazon is ₹4L–₹9L per year, which includes base salary and additional pay. The average Relay Operation Specialist base salary at Amazon is ₹4L per year.

How much does Amazon Freight Partners make? ›

Class A CDL Drivers for Amazon Freight Partner - ($50,000 - $80,000 yearly including overtime/performance payments) Compensation: $50,000 -$80,000 yearly take home pay + benefits (401k with Company ...

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