The industry less than transmission can face seismic shifts while the rumors circulate that the e-commerce Behemoth Amazon is preparing to expand surgery as a LTL carrier.
LTL markets – already face the pressure pressures of demand and prices – now they are facing a spectrum of a new new participant. Recent data suggest this The industry approaches the point of slope where the discipline of the carrier’s price could start eroded.
Amazon’s strategic maneuvering according to LTL capabilities testifies to recent job posts for LTL product managers and network design positions. These roles, seemingly intended for Amazon Freight – a company truck and intermodal division – signal a clear intention to build LTL internal capacity.
It is unnecessary to say that the potential for the market disorder is significant.
JP Morgan Analyst Brian Ossenbeck warned in a research note that Amazon’s entry as a competitor for rent is a significant risk for LTL shares. “The most obvious risk of LTL supplies is if this service is starting for external users at some point in 2026, because it is quite impossible to return that disturbing idea in the frame,” Ossenbeck notes.
Amazon’s extensive cross -country and existing logistical assets provide a powerful foundation from which they will construct LTL operations, potentially creating a double influence: reducing demand for rival carriers, at the same time increasing the demand in the truck segment.
This threat comes in a particularly challenging time for existing LTL operators. TFI International CEO Alain Bedard Recently characterized the trucking industry as a “deep recession”, with quantities on alarming low levels. “This is still a very, very difficult environment,” Bedard said during the profit call, projecting that “the first six months of 2025 will be more difficult than the first six months of 2024.” This feeling echoes throughout the industry, and most of the main players predicted the further volume of the wind through the at least the first half of 2025.
Old Dominion Line – The Industry Bell – reported about the fall in revenue for the Q4 2024 compared to one year compared to one yearWith a tonnage daily, 8.2%falls. The company’s business ratio has worsened by 410 base points from year to year to 75.9%, which reflects the excess capacity stress in the expectation of a market turning point.
Similarly, the ARCBEST CORP segment based on property, which includes its LTL operations, recorded a drop of revenue of 7.6% compared to the year in the fourth quarter 2024By undercovering the pressure of the margin, he felt throughout the industry. Executive director Judy Mcreynolds emphasized the need for increased volume to use the company’s fixed cost network and margin extension.
