trucking

Amazon's LTL Push Fails to Rattle Carrier Stocks

Amazon Supply Chain Services launched full less-than-truckload service Wednesday. The announcement prompted a modest 5% decline in publicly traded carrier shares despite the sector's 60% year-to-date gains. Analysts said the e-commerce giant's entry poses limited near-term competitive threat to established operators. The service operates through roughly 30 terminals using an asset-light model focused on parcels weighing less than five pounds, differing markedly from traditional LTL carriers that handle heavy pallets with complex service requirements. Deutsche Bank's Richa Harnain noted Amazon's footprint remains insufficient for nationwide asset-based operations. TD Cowen's Jason Seidl suggested the intermodal container approach targets economy-segment shipments, allowing Amazon to capture market share without triggering widespread defection from legacy carriers. The $60 billion LTL market has historically rebounded following Amazon-related volatility.