Freight stocks fall as Amazon opens logistics network to outside businesses

Investing.com -- Shares of freight and logistics companies dropped on Monday after Amazon announced the launch of Amazon Supply Chain Services, opening its logistics network to businesses beyond its own operations.

CH Robinson Worldwide fell 6.3%, while J.B. Hunt declined 3.7% and Old Dominion Freight dropped 3.7%. Knight-Swift Transportation slid 3.3% and Hub Group lost 4.2%.

Amazon said Monday it is making its freight, distribution, fulfillment, and parcel shipping capabilities available to companies across industries including healthcare, automotive, manufacturing, and retail. The service extends Amazon's logistics infrastructure, which includes 80,000 trailers, 24,000 intermodal containers, and 100 aircraft.

Several major companies have signed up for the service. Procter & Gamble is using Amazon's freight services to transport raw materials and finished goods, while 3M is using the freight network to move products from manufacturing sites to distribution centers.

The offering includes freight services spanning ocean, air, ground, and rail transportation, distribution and fulfillment services for inventory management, and parcel shipping with two-to-five-day delivery speeds.

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