The new offering leverages Amazon’s existing logistics network to compete with asset-light freight intermediaries on pricing and transit times.
Amazon.com Inc (NASDAQ:AMZN) has introduced a less-than-truckload (LTL) freight service under its Amazon Supply Chain Services platform, enabling businesses to ship goods to third-party warehouses, distribution centers, or retail partners. The service utilizes Amazon’s transportation infrastructure, including 80,000 trailers and 24,000 intermodal containers, to offer lower costs and faster transit times than competitors.
Amazon’s LTL terminal footprint remains limited, with roughly 26 terminals compared to an average of 295 among the top five carriers. Analysts at Bank of America describe the move as an extension of existing internal capabilities rather than a major capital deployment or network expansion. The company is routing external freight through available capacity, positioning itself as a third-party logistics coordinator.
The service directly competes with asset-light freight intermediaries like CH Robinson and RXO, focusing on demand aggregation and pricing. Bank of America analysts suggest the strategy aims to improve network utilization, reduce empty miles, and support long-term margin expansion in Amazon’s retail business.