Freight & Logistics - Amazon Freight: Understanding The Company's LTL Expansion

Research evidence excerpt

Freight & Logistics - Amazon Freight: Understanding The Company's LTL Expansion

Truist Securities

Equity Research Report July 6, 2026

INDUSTRIALS: Freight & Logistics

Freight & Logistics - Amazon Freight:

Understanding The Company's LTL Lucas Servera

404-439-7688 Expansion Lucas.Servera@truist.com

We view Amazon's expanding LTL offering as an evolution of its broader supply chain

strategy rather than an immediate disruption to incumbent LTL carriers. We therefore do

Daniel Ighodaro not believe the company's current LTL capabilities warrant a change in our constructive

404-439-7388 view on high-quality LTL names. Daniel.Ighodaro@truist.com

16 Page Document Please see pages 3-10 for more details around our views.

We have received an increasing number of inbound questions regarding Amazon.com,

Reasons for this report Inc.'s (AMZN, Buy, Squali) expansion into the less-than-truckload (LTL) market and the potential implications for incumbent carriers. While AMZN has moved LTL freight

✓ Sector Update for years (primarily inbound into its fulfillment centers) the company has more recently

expanded its offering to provided LTL transportation services to virtually any shipper ✓ Deep Dive Report

through Amazon Freight. After taking a deeper look at Amazon's current network and

speaking with industry participants, we believe AMZN is becoming a more meaningful

participant in LTL. Having said that, we believe there remain several structural

differences between its current operation and those of legacy LTL carriers.

First, we believe the physical network remains one of the industry's largest

competitive moats. Operating a profitable LTL network requires a dense footprint

of dedicated cross-dock service centers that efficiently sort heavy palletized freight