TNB Tech Minute: Amazon Launches Third-Party Logistics Service

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Julie Chang· Host0:11

[upbeat music] Here's your afternoon TNB Tech Minute for Monday, May 4th. I'm Julie Chang for The Wall Street Journal. We exclusively report that Amazon is opening its global logistics network to more business customers today by launching Amazon Supply Chain Services. Companies from consumer goods manufacturers to apparel retailers can now hire Amazon for services such as fulfillment, ocean and air shipping, and truck transportation. The move officially makes Amazon a third-party logistics provider, competing with the likes of transportation and warehousing giants such as DSV, DHL Group, and Kuehne+Nagel International. It positions Amazon to take a bigger bite out of the more than one point three trillion dollar global market for third-party logistics services. Shares of UPS and FedEx slid after The Wall Street Journal reported on Amazon's launch. UPS was trading down more than nine percent, meanwhile FedEx shares are also down over nine percent on pace for their largest decrease in over a year. The two delivery rivals are among the five worst performers in the S&P five hundred so far today, according to Dow Jones Market Data. Amazon has already surpassed UPS and FedEx as the largest parcel carrier in the US by