Amazon (NASDAQ:AMZN) has quietly struck a multi-year deal with FedEx (NYSE:FDX) to handle certain large-package deliveries—weeks after UPS announced it would cut Amazon volume by over 50% by H2 2026. The partnership marks a notable thaw in FedEx–Amazon relations and sent FDX stock up 7% on Monday, outpacing the broader market rally.
Why This Matters
Capacity Relief for Amazon: With UPS scaling back less-profitable residential shipments, FedEx will fill capacity gaps for heavy and bulky orders, providing Amazon “cost favorability” versus UPS rates.
No Exclusive Shift: FedEx will join Amazon’s existing roster of carriers—including UPS, the USPS, and Amazon’s own logistics arm—underlining the retailer’s multi-carrier “best-cost” strategy.
Strategic Win for FedEx: Restores FedEx’s standing with Amazon after the two split delivery operations in 2019, and boosts FedEx’s long-term volume outlook.
Market Reaction
FedEx shares outperformed, closing up 7% on Monday. To see today’s top-performing stocks across all U.S. exchanges—including FDX—tap into the Market Biggest Gainers API, which provides a live feed of the stocks leading premarket, regular, and after-hours sessions:View Today’s Market Gainers
What to Watch Next
Volume Mix: Monitor FedEx’s Q3 earnings commentary for incremental volume and margin impact from Amazon’s large-parcel business.
UPS Response: UPS’s strategy pivot—focusing on higher-margin shipments—will be revealed in its upcoming investor presentation.
Logistics Costs: Amazon’s overall fulfillment expense trends, detailed in its next quarterly report, will show how the blended carrier mix affects unit economics.
By combining real-time movers data via the Market Biggest Gainers API with upcoming earnings and guidance, investors can gauge how this renewed alliance reshapes the parcel-delivery landscape.
