Amazon opens trucking service to outside shippers, pressuring U.S. freight stocks

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Amazon opens trucking service

Highlights

Amazon expands its LTL shipping service to all U.S. businesses, delivering to any destination via its Amazon Supply Chain Services program.
Old Dominion Freight Line shares fall over 6%, ArcBest drops 4%, and both Saia and XPO Logistics slide 5% after Amazon's announcement.
Amazon's rollout of broader logistics offerings, including last month's end-to-end supply chain product, increases competitive pressure on FedEx, UPS, and other freight carriers.

Amazon broadens LTL logistics offer

As reported by CNBC, Amazon says it is opening its less-than-truckload, or LTL, shipping service to all businesses, rather than limiting access to merchants moving goods into its warehouses and fulfillment centers. The company says the service can deliver freight to any destination in the U.S. under its developing Amazon Supply Chain Services program.

LTL shipping refers to combining freight from multiple customers on a single trailer instead of moving a full truckload for one shipper. In a statement, Jim Ruiz, director of Amazon Freight, says customer feedback showed users wanted broader access to Amazon’s technology, visibility and reliability, prompting the wider rollout.

Amazon has spent several years building a large logistics network to reduce dependence on outside carriers and support faster delivery times. That network includes Amazon-branded cargo planes, tens of thousands of delivery vans, 80,000 trailers and 24,000 containers.

Freight sector faces stronger competitive threat

Investor reaction is negative across the freight sector following the announcement. Old Dominion Freight Line shares slump more than 6%, ArcBest falls 4%, while Saia and XPO Logistics each slide 5%; shares of FedEx Freight, which began trading earlier this month after its spin-off from FedEx, drop about 3%.

The latest expansion adds to concerns that Amazon is turning internal logistics capabilities into commercial services that compete directly with transport incumbents. Last month, the company unveiled an end-to-end supply chain product that bundles several freight and logistics offerings into one package, a move that also pushed rival carriers UPS and FedEx lower.

Our earlier article on foreign direct investment in U.S. businesses in 2025 highlighted a sharp jump in first-year spending to $232.2 billion, driven primarily by acquisitions and with manufacturing taking the largest share. It also noted that transportation and warehousing led greenfield investment, underscoring how capital is flowing into sectors tied to supply chains and freight activity.

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