Amazon Quietly Courts Shippers for New LTL Service, Morgan Stanley Report Reveals
Amazon.com Inc. is making discreet overtures to potential customers for its forthcoming Less-Than-Truckload (LTL) shipping service, according to a recent industry analysis from Morgan Stanley. The move signals a deliberate, if measured, expansion of the e-commerce giant's logistics arm into a fragmented but competitive freight market.
In a report led by analyst Ravi Shanker, Morgan Stanley's transportation team stated that Amazon "appears to be in the early stages of reaching out to shippers regarding their LTL offering." The investment bank cited a "trusted" shipper source indicating a targeted launch window of June or July, beginning with a network of approximately 26 terminals. This scale pales in comparison to established players like privately-held Estes Express Lines, which recently announced expansions to a network exceeding 300 terminals.
Selective Outreach Shows Strategy
The report, based on a survey of 87 shippers, found that 11% have already been contacted by Amazon about LTL services. "At this early stage, 11% penetration is reasonably high," Morgan Stanley noted, suggesting a targeted approach rather than a broad market blast. Crucially, the survey revealed that 81% of those approached do not currently use Amazon for other logistics services, indicating the company is seeking new relationships rather than merely upselling existing clients.
Market Impact and Incumbent Risk
While initial forays are modest, analysts see a clear long-term threat. "Amazon LTL will 'represent a risk to incumbent LTLs,'" the Morgan Stanley report concluded, echoing sentiments from other Wall Street firms. Last year, J.P. Morgan analyst Brian Ossenbeck warned that an external Amazon LTL service launch, potentially by 2026, presents a "most obvious" disruptive risk for the sector, as the concept, once unleashed, is difficult to contain.
Amazon has previously confirmed a separate, inbound-only LTL service for goods destined for its fulfillment centers. The company did not respond to requests for comment on the Morgan Stanley disclosures prior to publication.
Industry Voices React
David Chen, Logistics VP at a Midwestern Manufacturer: "We're listening. If Amazon can provide real-time visibility and reliability at a competitive price point, it forces everyone to up their game. It's a wake-up call for service innovation."
Maria Rodriguez, Owner of Rodriguez Freight Brokering: "This is terrifying for small carriers. They're not just competing on price; they're leveraging data from a million other transactions. It feels like the beginning of a squeeze that many independent operators won't survive."
Franklin "Hank" O'Reilly, Retired LTL Terminal Manager: "Twenty-six terminals? That's a pilot program, not a network. The real test is handling claims, chronic driver shortages, and the thousand daily operational fires. Let's see how their algorithms handle that reality check."
Lisa Wang, Supply Chain Analyst at TechNet Advisory: "The high interest—nearly 60% of shippers would consider them—is the real story. It shows profound market dissatisfaction. Amazon is exploiting a service gap, not just creating capacity."