Amazon Expands Less-Than-Truckload Freight Service as 3PL Push Continues

Amazon is widening its less-than-truckload (LTL) freight service as part of a broader strategy to grow its third-party logistics (3PL) business. The move positions the e-commerce giant to compete more directly with established freight brokers and carriers that move palletised shipments across the United States.

Building on a freight network

The expansion builds on Amazon Freight, a platform launched in recent years to give shippers direct access to the company's transportation capacity. By extending into LTL, Amazon is targeting freight that does not fill an entire trailer, a segment long dominated by specialist carriers and digital brokers.

Industry observers say the shift reflects Amazon's ambition to monetise the logistics infrastructure it built to support its own retail operations. Opening that capacity to external customers could turn a cost centre into a new revenue stream.

Pressures in the broader logistics market

The push comes at a challenging moment for logistics providers, with some players restructuring to stay viable and others pursuing growth to capture shifting supply chains.

• LTL volumes have been a focus for digital freight platforms seeking scale.
• Shippers are increasingly looking for flexible capacity outside traditional carriers.
• Third-party logistics continues to consolidate as larger players absorb smaller operators.

For more on the wider sector, see how Saudi Arabia's logistics sector is poised for significant expansion and how Amazon has expanded its logistics capabilities with a new end-to-end supply chain service. The competitive landscape is also reshaping brokerages, as seen in the recent news that Stax orders are in limbo as the struggling company goes on the market.

What it means for shippers

For businesses moving smaller freight loads, Amazon's deeper LTL presence could mean more competition, potentially tighter pricing and broader capacity options. Carriers, meanwhile, may face a powerful new entrant with the technology and scale to reshape booking and pricing dynamics in the segment.