Amazon has introduced Amazon Supply Chain Services (ASCS), offering its end-to-end logistics capabilities—including ocean freight, warehousing, inventory management and last-mile delivery—to any business, regardless of its presence on Amazon’s marketplace. This expands the scope of its infrastructure beyond internal use and existing Fulfillment by Amazon merchants.

Following the ASCS rollout, FedEx shares declined roughly 9% and UPS fell about 10% as investors reacted to the prospect of intensified competition in freight and parcel delivery. Amazon’s existing network of over 100 cargo planes and thousands of sorting hubs presents a structural threat in e-commerce-heavy routes.

Transport companies face additional headwinds from surging diesel and jet fuel prices, which have moved sharply higher this year. These elevated energy costs are poised to compress margins across the sector, compounding the disruption from Amazon’s expanded logistics services.