Amazon’s expansion into third-party less-than-truckload shipping sparks a selloff in freight carrier stocks as competition intensifies.
Amazon will allow businesses of any size to use its less-than-truckload (LTL) freight service for shipments to any U.S. destination, not just its own warehouses. The move extends a service previously limited to inbound deliveries for Amazon partners, now leveraging over 80,000 trailers and 24,000 intermodal containers.
Shares of established freight carriers fell sharply following the announcement. Old Dominion Freight Line dropped more than 6%, while Saia and XPO Logistics declined 5%. ArcBest lost 4%, and FedEx Freight, which recently spun off from FedEx Corp., initially plunged 10% before paring losses. The LTL model consolidates multiple small shipments into a single trailer, typically weighing between 150 and 15,000 pounds.
Amazon has operated an inbound-only LTL service since 2019, handling millions of pallets annually. The company cited strong demand from selling partners for broader access to its logistics technology and reliability.