Shares of two major U.S. package carriers moved lower in premarket trading after Amazon said it will open its logistics infrastructure to external customers under the name Amazon Supply Chain Services.
FedEx dropped 2.4% while United Parcel Service slipped 1.8% in early trading, reflecting immediate market reaction to Amazon's decision to deploy its freight, distribution, fulfillment and parcel shipping capabilities to companies outside its own retail operations.
Amazon said the new service makes its network available to firms across multiple industries, naming healthcare, automotive, manufacturing and retail among the sectors that can access its logistics offerings. The company detailed the scope of the program as including freight services spanning ocean, air, ground and rail transportation; distribution and fulfillment services focused on inventory management; and parcel shipping with delivery timelines of two to five days.
The announcement highlighted the scale of Amazon's logistics footprint, noting an operating inventory that includes 80,000 trailers, 24,000 intermodal containers and a fleet of 100 aircraft. The company also said several large customers have begun using the new freight capabilities; Procter & Gamble is transporting raw materials and finished goods via Amazon’s freight services, and 3M is moving products from manufacturing sites to distribution centers using the same network.
Market moves in the early session signaled investor concern for traditional freight and parcel carriers as Amazon opens its logistics assets to third-party commercial traffic. The company’s offering spans multiple transportation modes and includes services aimed at both inventory management and parcel delivery, creating a single-source option for companies looking to consolidate freight and fulfillment operations.
Details on pricing, geographic rollout or the full customer list beyond the named corporations were not included in Amazon’s announcement. The company described delivery speed targets for parcel shipping but did not provide additional operational metrics in the initial release.
What to watch next
- Investor responses in the shares of incumbent logistics providers in subsequent trading sessions.
- Adoption and deployment details from Amazon regarding geographic coverage, pricing, and capacity allocation.
- Announcements from additional corporate customers or case studies that clarify how customers are using the service.