Amazon expands LTL service nationwide, targeting established carriers

Amazon launched a full-scale less-than-truckload network on Wednesday open to all shippers, marking a significant expansion beyond its April 2025 pilot that only accepted inbound freight to Amazon facilities. According to FreightWaves, the move positions Amazon to compete directly with legacy carriers like FedEx Freight, Old Dominion, and Estes. The new service handles shipments of one to six pallets weighing 150 to 15,000 pounds, delivered to third-party warehouses, distribution centers, retail stores, and customer facilities nationwide. Amazon operates a traditional hub-and-spoke network where palletized freight transfers at nearby terminals before final delivery, undercutting incumbent LTL rates. Shippers gain next-day live pickup for orders placed by 5 p.m., same-day pickup via drop-trailer, and standing daily pickups for high-volume accounts. The drop-trailer method uses a unified pool for both LTL and truckload shipments, eliminating unloading delays. All shipments include real-time GPS tracking, automated appointment scheduling, electronic proof-of-delivery, and sensor-equipped vehicles for cargo security. Amazon Freight director Jim Ruiz attributed the expansion to seller feedback on the service's technology, visibility, and reliability. The announcement follows Amazon Supply Chain Services opening freight, distribution, fulfillment, and parcel shipping to non-Amazon sellers last month. For trucking operators and small carriers, Amazon's entry into national LTL signals intensified pricing pressure and potential customer losses.