Freight stocks fall as Amazon announces less-than-truckload offering for outside businesses

(Photo by Al Drago/Getty Images)

 

Hey Snackers,

If you’ve got money locked up on-chain and an itch to gamble with it in a new way, has the World Series of Poker got good news for you. The WSOP announced that at its big summer event, players will have the option to pay the buy-in for tournaments using crypto directly for the first time, through a new partnership with solana. 

The S&P 500, Nasdaq 100, and Russell 2000 all fell on Wednesday. Oil prices rose as the US and Iran traded retaliatory strikes, and inflation ticked up in May, though the key core inflation metric (which strips out volatile food and energy prices) came in cooler than economists had expected.

After the bell, Oracle reported fiscal fourth-quarter earnings against a backdrop of fresh AI jitters. Oracle’s results topped estimates, but the stock fell in the postmarket as the hyperscaler, which already has a massive pile of debt to finance its AI aspirations, said it would issue tens of billions more in debt or equity. 

 
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FREIGHT DRAIN

Freight stocks fall as Amazon announces less-than-truckload offering for outside businesses

Amazon yesterday escalated its attack on legacy logistics companies by opening less-than-truckload (LTL) shipping to outside businesses as part of its Supply Chain Services business announced last month.

  • Previously, businesses could largely only use Amazon’s LTL fleet to send bulk goods inbound to Amazon’s own facilities. 
  • Now, companies can use Amazon to ship partial truckloads anywhere in the US, including to rival third-party warehouses or direct to their own retail partners.
  • That means legacy carriers must now compete against Amazon’s 80,000 trailers, 24,000 containers, and its highly automated network.

Industry heavyweights like Old Dominion Freight (down 5%), XPO (down 5%), and Saia (down 3%) all fell on the news, as did FedEx, which recently spun off FedEx Freight. 

“The feedback from Amazon selling partners using our LTL service was clear: the technology, visibility, and reliability were exactly what they needed — and they wanted to use it more broadly,” Jim Ruiz, director of Amazon Freight, said in the press release.

THE TAKEAWAY

A legacy business having to adapt to Amazon muscling in on its business? Now we’ve heard everything. 

While retailers have had to tilt at Amazon for decades at this point, in this case Amazon isn’t necessarily running the 1990s bookseller playbook; it’s more Amazon’s 2010s AWS playbook. It’s found a way to take a division of its business that was originally conceived as an internal resource to help with its e-commerce business, and then open it up to external clients who want to have a plug-and-play cloud server business — or in this case, a plug-and-play logistics business.

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I SAID BEEP BEEP

The robots are coming... to help small businesses, actually

When a new technology arrives, be it AI or robots, what quickly follows is a wall of worry that the innovation will kill jobs and destroy businesses. But if you ask Andy Lonsberry, CEO of Path Robotics, he’ll tell you that labor shortages, not bots, are the bane of so-called blue-collar businesses. 

It’s why he started the company, after his first business failed due to a lack of humans in the welding labor force. Path’s welding robots that can do everything from finish a motorcycle chassis to weld together the hulls of massive ships.

  • Path’s solutions have become extremely valuable to other small- and medium-sized manufacturing companies, such as Mid-Land Enterprises in Joplin, Missouri, a maker of brass valves and fittings.
  • Hiring humans remains something small businesses, especially in manufacturing, struggle with across the country. Manufacturing sites in the US lose 20% of their capacity every year due to labor shortages.
  • Getting some extra nonhuman help on the factory floor is becoming a viable option for small-business budgets with monthly robots-as-a-service subscriptions; that recurring fee is much more manageable than a big, one-time up-front investment, and cheaper than hiring an additional worker.
  • Robots are helping beyond the assembly line, too. Industries across the economy have seen specialized robot services spring up. Barn Owl Precision Agriculture created a line of weeding and spray robots for small family farms. Serve Robotics helps deliver food and has a few different lines that help with food prep and medical clinics; the most well-known is perhaps the Autocado employed by Chipotle. 

THE TAKEAWAY

But won’t robots eventually take over blue-collar gigs? One of the biggest automation stories, the introduction of robots to auto factory floors, didn’t cause a massive loss of jobs. For the last half-century, auto industry employment has remained relatively steady at a little over a million jobs, though it looks different than it once did: output has greatly increased, and those roles have been relocated and spread across the country. 

The expansion of robots in the economy is a matter of when, not if, even though it may not look like the humanoid-robot future that gets the most attention, and funding.

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THE BEST THING WE READ TODAY

Could the iPhone be to blame for America’s plunging birth rate?

A new study has linked a marked decline in age-specific US fertility rates to the release of Apple’s landmark product. Overall, the US general fertility rate has fallen some 23% since 2007 to just 53.1 births per 1,000 females aged 15 to 44 in 2025. 

The heir-drop, charted

 

Snacks Shots

  • ⚽️ World Cup: Today’s the kickoff for the 2026 World Cup! Mexico, one of the three hosts, will play South Africa to start things off this afternoon in a game that has Mexico as 72% favorites** over South Africa (11% to win). Then, later tonight, South Korea and Czechia face off in a match where Korea is slightly favored (37%) to win over Czechia (34%).