FedEx, UPS Shares Sink on ‘Watershed’ Amazon Logistics Move (3)

US transportation stocks plunged Monday after Amazon.com Inc. announced expanded logistics offerings that will turn it into a major competitor for parcel carriers and air freight companies, and also impact truckers and third-party brokers.

FedEx Corp. shares fell 9.1% in their worst day in more than a year, while rival United Parcel Service Inc. dropped more than 10%. Logistics firms Forward Air Corp. and GXO Logistics Inc. suffered double-digit declines. Old Dominion Freight Line Inc., among other truckers, slid almost 7%.

The news is “a shot across the bow to the entire transport market,” said Joe Gilbert, portfolio ...