Amazon is building a logistics empire — and Morgan Stanley says the e-retailer is now ‘the elephant in the boardroom’ for one of America’s largest trucking companies

, is the latest transportation giant that's picked up on Amazon's logistics aspirations. That's according to Morgan Stanley's team of transportation analysts, who recently visited J.B. Hunt's headquarters in Lowell, Arkansas.

Amazon is a top 10 customer of J.B. Hunt and uses all of its service offerings, according to a March 14 Morgan Stanley note to investors. But, now that Amazon is developing its own trucking and transportation network, its dependence on J.B. Hunt might suddenly drop."Amazon is the elephant in the boardroom," Morgan Stanley transportation analysts wrote in the note.

On the other hand, J.B. Hunt's C-suite appears to be comfortable with the idea of Amazon curtailing its dependence on the company's logistics offerings. " believes Amazon is a company in transformation, like Walmart and Home Depot once were," Morgan Stanley analysts wrote."However, J.B. Hunt has more than a decade of relationship with Amazon and understands their customer very well."

"J.B. Hunt will look to grow with Amazon and other customers but management is acutely aware of changing shipper-carrier dynamics and the potential for not just sudden insourcing but also potentially competing with some of their customers, over time," they continued.

If amazon ever opens pharmacies and gas stations, at whole foods or otherwise, they have essentially replaced basically every single other business that you could shop at. Prime is also one of the best ideas ever period.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'Don't trust the strong rally': Morgan Stanley warns stocks aren't out of the woods just yetThe stock market's rally so far this year shouldn't be trusted, Morgan Stanley equity strategists said in a new report. LiveSquawk Don't look for accurate stock market news from BusinessInsider
Source: BusinessInsider - 🏆 729. / 51 Read more »

Is Amazon a friend or foe of the auto industry? Morgan Stanley isn't sureMorgan Stanley's Adam Jonas is closely watching what Amazon's doing in the electric vehicles space. Electric vehicles are still the equivalent of a convertible. They have their points as a niche vehicle, yet fail to have the utility for overall use. Going all in on not ready is bound to bring disappointment.
Source: CNBC - 🏆 12. / 72 Read more »

Morgan Stanley CEO James Gorman: A trade deal will not lead to a 'meaningful' rally in stocksDon't expect a significant boost to stocks if and when the U.S. and China strike a deal on trade, Morgan Stanley CEO James Gorman said Friday. A one day 'pop' then, ya better be careful. SHORT SHORT SHORT There have been multiple warnings to get out for weeks...
Source: CNBC - 🏆 12. / 72 Read more »