Amazon launches supply chain service and hits logistics stocks
Updated
Updated · Barron's · May 8
Amazon launches supply chain service and hits logistics stocks
11 articles · Updated · Barron's · May 8
The new ASCS network includes more than 80,000 trailers, 24,000 intermodal containers and 100 aircraft, while shares of FedEx, UPS and other providers fell as much as 10%.
Analysts said the move formalises a threat Amazon has posed for years, but argued established operators should remain competitive because many retailers may resist sharing sensitive inventory and demand data.
Industry executives said the $400bn-plus market remains large and fragmented, though Amazon’s entry could pressure transport valuations after a strong rally on hopes the freight downturn was ending.
Why is Amazon launching its logistics service now, during a historic freight market downturn?
As Amazon enters logistics, can businesses trust their direct competitor with sensitive supply chain data?