Amazon Freight Expansion Rattles Less-Than-Truckload Carriers

The expansion of Amazon’s Supply Chain Services enables businesses to move shipments ranging from one to six pallets, covering weights between 150 and 15,000 pounds. By offering this pallet-based shipping option, Amazon aims to provide a more cost-effective alternative to traditional freight providers that often require companies to reserve and pay for full truckloads regardless of cargo volume.

Investors responded with caution to the announcement, betting that Amazon’s entry into the space will erode the market share of long-standing LTL operators. Old Dominion Freight Line suffered the sharpest blow, with shares dropping 4% to $238.74. Other major players faced similar downward pressure: XPO shares fell 3.6% to $219.47, ArcBest declined 2.9% to $168.18, and Saia stock slid 1.9% to $470.08 by Wednesday’s close.