Amazon Expands Logistics Offering to External Shippers; Transport Stocks Slide

Amazon.com Inc. (NASDAQ:AMZN) has rolled out its Amazon Supply Chain Services platform, opening up its logistics infrastructure to third-party shippers beyond its traditional marketplace sellers. Analysts at Stifel described the subsequent market reaction as excessive.

The new service integrates Amazon’s freight network—including trailers, intermodal containers and air cargo capacity—with its fulfillment centers, distribution hubs and last-mile delivery operations. This broader access allows companies of all sizes to tap into a system that was previously limited to Fulfillment by Amazon and Multi-Channel Fulfillment users.

The announcement triggered a significant decline in transportation stocks on Monday. C.H. Robinson Worldwide Inc. (NASDAQ:CHRW) and RXO Inc. (NYSE:RXO) each fell close to 10%, while GXO Logistics Inc. (NYSE:GXO) dropped 18%, marking its steepest single-day loss since listing.

Forward Air Corporation (NASDAQ:FWRD) declined 24%, while parcel delivery giants FedEx Corporation (NYSE:FDX) and United Parcel Service Inc. (NYSE:UPS) fell 9% and 10.5%, respectively.

According to Stifel, the launch enhances Amazon’s commercial offering but does not represent a fundamental shift in its capabilities. The company has been providing logistics solutions to external clients for more than a decade, starting with truck brokerage and gradually expanding into air freight, trucking and less-than-truckload services.

The analysts argue that Amazon’s strategy is focused on improving utilisation of its internal capacity rather than directly competing with independent logistics providers offering higher service levels. The platform is aimed primarily at cost-sensitive customers, similar to how other large shippers monetise excess capacity.

Stifel’s channel checks suggest Amazon remains largely absent from most competitive tenders. Initial feedback indicates that companies such as Procter & Gamble Co., 3M Company, Lands’ End Inc. and American Eagle Outfitters Inc. are primarily allocating lower-value freight or inventory tied to Amazon-related sales channels to the platform.

Despite the sharp sell-off, Stifel maintained Buy ratings on FedEx Corporation, United Parcel Service Inc., Forward Air Corporation and GXO Logistics Inc., pointing to early signs of cyclical recovery and improving supply-demand balance in the transportation sector.