Amazon announced Wednesday that it is opening its internal trucking network to external clients, marking a significant expansion into the third-party logistics market.
The company will begin offering less-than-truckload (LTL) shipping capabilities to outside businesses, moving beyond its traditional reliance on independent carriers and legacy integrators.
The announcement triggered an immediate selloff in freight and logistics equities.
Shares of major carriers, including UPS and FedEx, slumped as investors priced in the long-term threat to incumbent market share.
The move signals Amazon's intent to capture more margin within its own supply chain while directly competing with established freight operators.
For the broader shipping and freight sector, the development adds another layer of structural pressure on legacy carriers already navigating elevated operating costs and fluctuating trade volumes.