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Barchart
Barchart
Anushka Mukherji

Ignore the Amazon Trucking Noise and Buy UPS Stock for Its High Yield Near 7%

Wall Street was rattled after e-commerce giant Amazon (AMZN) made a bold move into the logistics arena on May 4, unveiling Amazon Supply Chain Services (ASCS), a sweeping platform that opens the company’s massive freight, fulfillment, distribution, and shipping network to outside businesses. The announcement immediately sent shockwaves through the U.S. logistics industry and sparked a sharp selloff in logistics stocks, with United Parcel Service (UPS) tumbling nearly 10.5% on the same day.

The new service allows companies of all sizes across industries, including retail, healthcare, and manufacturing, to tap into Amazon’s sprawling supply-chain infrastructure spanning ocean freight, trucking, rail, air cargo, warehousing, fulfillment, and parcel delivery. The move signals Amazon’s ambitions to evolve far beyond e-commerce and establish itself as a dominant force in the U.S. logistics market, a space long dominated by UPS and other traditional freight giants.

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