Amazon Just Dropped a Bomb on Trucking Stocks – No One Is Safe

(SeaPRwire) –   By: Robert Kensington

Amazon isn’t just testing the waters in less-than-truckload freight. It’s making a full push for a mature, profitable market. The immediate selloff in trucking stocks isn’t overblown panic. It’s a rational reaction to a clear threat.

Amazon first launched its LTL service back in 2019. Until this week, it only served businesses shipping goods into Amazon warehouses. The new expansion opens the service to all U.S. businesses of any size. It covers any destination across the entire country. The service is backed by more than 80,000 trailers and 24,000 intermodal containers. It offers features like next-day pickup and real-time GPS tracking. This move follows Amazon’s broader May supply chain service announcement. That announcement already sent UPS down more than 10% in one session.

Wall Street’s reaction hit every major public LTL player. Old Dominion fell 7.3% on the news. Saia dropped 8.2% for the sharpest single-day loss among peers. FedEx Freight slid 5.2%, and Knight-Swift fell 5.4%. XPO also dropped between 4% and 5%. Amazon itself slipped around 1.2%. Analysts keep telling investors not to panic. They argue the industry has enough growth for multiple players. They say incumbents have always adapted to new competition. But investors see the path Amazon is taking. It already moved millions of pallets through the service last year. It now gives small shippers a new option they never had before. The fear isn’t today’s threat. It’s the long-term direction of Amazon’s expansion.

Top incumbent LTL carriers will lose double-digit market share to Amazon over the next five years.

Author bio: Robert Kensington, a veteran industrial investor with decades of experience covering U.S. logistics and supply chains.