After a 2013 shipping debacle left Amazon vowing to never again to use FedEx or UPS, there are rumors that Amazon could launch its own delivery service. The fear of an Amazon third party logistics service has been damaging to UPS and FDX. But we have to remember that Amazon still relies very heavily on the two shipping giants, because let’s face it. Logistics isn’t easy…
And we have to consider that the absence of Amazon may not be terribly damaging to the bottom line of UPS or FDX. Over the last 12 months, UPS generated $58 billion in revenues. FDX generated $48 billion. Amazon had shipping costs of $10.4 billon, which tells us a loss of Amazon wouldn’t be as bad as many believe.
And even if Amazon does launch a third party logistics service, it won’t happen for quite some time. Logistics is no easy task.
Technically, FDX has found solid support after the latest fall… After finding double bottom support just above $140 with oversold reads on MFI, MACD and RSI, FDX is just beginning to bounce back.
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