NEW YORK, NY / ACCESSWIRE / February 12, 2018 / Shares of shipping stocks were falling into the red this past Friday, including UPS and FedEx, after Amazon said that it wants a part of the shipping industry. The e-commerce giant told The Wall Street Journal that it is planning to launch a "Shipping With Amazon" business-to-consumer delivery service in Los Angeles. The launch will roll out in the upcoming weeks.

RDI Initiates Coverage on:

United Parcel Service, Inc.
https://rdinvesting.com/report/?ticker=UPS

FedEx Corporation
https://rdinvesting.com/report/?ticker=FDX

United Parcel Service's shares closed down 2.64% on about 11.3 million shares traded on Friday. A report in the WSJ on Friday had traders nervous as it was reported that Amazon is planning to launch its own shipping service. Earlier this month Amazon filed a 10-K for 2017 with the SEC that outlined the multi-billion-dollar cost of its free shipping offers on its platform. The filing read, "Shipping costs, which include sortation and delivery center and transportation costs, were $11.5 billion, $16.2 billion, and $21.7 billion in 2015, 2016, and 2017. We expect our cost of shipping to continue to increase to the extent our customers accept and use our shipping offers at an increasing rate, we reduce shipping rates, we use more expensive shipping methods, and we offer additional services." The company said it has plans to "mitigate costs of shipping over time in part through achieving higher sales volumes, optimizing our fulfillment network, negotiating better terms with our suppliers, and achieving better operating efficiencies."

Access RDI's United Parcel Service, Inc. Research Report at:
https://rdinvesting.com/report/?ticker=UPS

FedEx's shares closed down 1.65% this past Friday on a little over 5.1 million shares traded. It was a grim day for the stock after investors became cautious over Amazon announcing that it wants to be a part of the delivery service and that it has plans to launch such a service in Los Angeles. According to The Wall Street Journal, Amazon has said that it has plans for the company to pick up packages that are ordered from third-party sellers on its website. It will then deliver them to the customers who ordered them. The move is only going to happen in Los Angeles, but it may be a move that rolls out across the U.S. in the future. The Journal said that Amazon would be "direct competition for parcel business currently handled by delivery partners UPS and FedEx."

Access RDI's FedEx Corporation Research Report at:
https://rdinvesting.com/report/?ticker=FDX

Our Actionable Research on United Parcel Service, Inc. (NYSE: UPS) and FedEx Corporation (NYSE: FDX) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com