Less-than-truckload companies have a new competitor: Amazon.

Amazon is expanding its LTL freight offerings beyond its current inbound-to-Amazon offering, opening it up to any type of destination, as part of its Amazon Supply Chain Services (ASCS).

The announcement sent shares of carriers such as ArcBest, Old Dominion and XPO lower. The price for shares of FedEx Freight, which was spun off by FedEx earlier this month, dropped as well, according to CNBC.

Since 2019, Amazon has been offering LTL service to its Amazon selling partners and vendors, moving millions of pallets across its U.S. network last year.

Amazon launched inbound LTL last year for smaller shippers moving loads into Amazon fulfillment centers.

With this announcement, Amazon said, businesses of all sizes can use its LTL to move freight — typically ranging from one to six pallets, or between 150 and 15,000 pounds — into their warehouses, between their own facilities, or to their retail partners and distributors.

This launch is the latest addition to Amazon Supply Chain Services, a portfolio of supply chain capabilities from Amazon, including freight, distribution, fulfillment, and parcel shipping available for businesses of all types and sizes.

Customer: "We Needed a Provider That Could Keep Up With Our Growth."

“We started using Amazon for full truckload shipping four years ago because we needed a provider that could keep up with our growth," said Zech Hintz, vice president of global supply chain at Pattern, a global ecommerce accelerator, in an Amazon release.

"LTL has been the same story. In the past year, we've seen faster transit times and lower costs compared to traditional LTL services. It's rare to get both.”

“What has impressed us most is the drop trailer pool,” Hintz added. “Our warehouse teams load on their own schedule instead of racing against a driver’s clock, which has reduced dock congestion and kept throughput steady.”

Amazon offers seamless booking and flexible pick-up options, including next-day live pickup for orders placed by 5 p.m., same-day pickup through Amazon’s drop trailer solution, and standing daily pickups for high-volume shippers.

More About Amazon's new LTL Service

Drop trailer support. A unified drop trailer pool supports both LTL and full truckload shipments, simplifying yard operations for customers using multiple ASCS Freight services. 

Shipment visibility. End-to-end real-time GPS tracking from pickup through delivery, proactive milestone updates, automated appointment scheduling at receiving facilities, and electronic proof of delivery — eliminating manual tracking.

Sensor-equipped fleet. Centralized monitoring, with cargo cameras and door sensors across the entire fleet, enabling automated driver alerts and real-time freight security from load to unload. 

EDI integrations. Automated order tendering, shipment tracking, and invoicing connect directly to existing supply chain systems for seamless processing.

Experienced LTL drivers. Drivers trained specifically in LTL operations handle pickup and delivery, bringing expertise in freight handling, multi-stop routing, and dock procedures. 

"The feedback from Amazon selling partners using our LTL service was clear: the technology, visibility, and reliability were exactly what they needed — and they wanted to use it more broadly," said Jim Ruiz, director of Amazon Freight.

What is Amazon Freight?

Amazon Freight, part of Amazon Supply Chain Services, spans full truckload, less-than-truckload, and rail services, supported by more than 80,000 trailers, 24,000 intermodal containers, and terminals across major U.S. metros.

The service gives shippers access to the same logistics infrastructure, technology, and reliability that Amazon uses to move its own freight, with scalable capacity to support businesses when shipping volumes increase.