Updated
Updated · CNBC · Jun 10
Amazon Opens LTL Trucking Nationwide, Sending Old Dominion Down 6%
Updated
Updated · CNBC · Jun 10

Amazon Opens LTL Trucking Nationwide, Sending Old Dominion Down 6%

3 articles · Updated · CNBC · Jun 10

Summary

  • Old Dominion fell more than 6% on Wednesday after Amazon said its less-than-truckload service will now be available to all businesses and ship to any U.S. destination.
  • The move expands Amazon Supply Chain Services beyond merchants using Amazon warehouses, turning an in-house logistics tool into a broader offering for external shippers.
  • ArcBest dropped 4%, while Saia and XPO each slid 5%; FedEx Freight, newly spun off by FedEx, lost about 3% as investors priced in tougher competition.
  • Amazon has spent years building out its logistics network — including 80,000 trailers and 24,000 containers — and last month bundled several freight products into an end-to-end supply chain service.

Insights

With its new supply chain service, is Amazon about to do to trucking what it did to retail?
Newly independent FedEx Freight faces Amazon's logistics machine; is this a battle it can win?