The new publicly traded company is focused on the North American less-than-truckload (LTL) industry and operates with 40,000 employees and nearly 30,000 vehicles, including nearly 17,000 tractors, FedEx Freight said in a Monday press release.
FedEx Freight provides Priority, Economy and Direct service offerings so that customers can balance speed and cost, and its FedEx Custom Critical subsidiary provides expedited, time- and temperature-specific freight solutions, according to the release.
“As the largest pure-play LTL carrier in North America, we will leverage our comprehensive network with more than 26,000 service center doors to deliver cost and service advantages to our customers and capitalize on growth opportunities in high-potential verticals,” FedEx Freight President and CEO John Smith said in the release.
FedEx announced in a May press release that its board of directors approved the previously announced spin-off of FedEx Freight and that the new company’s common stock would begin trading on June 1 under the ticker symbol “FDFX,” while FedEx will continue to trade on NYSE under “FDX.”
“As separate organizations, FedEx and FedEx Freight will build on their respective industry leadership positions to serve customers with excellence, while creating value for their stockholders,” R. Brad Martin, executive chairman of the FedEx Board and incoming chairman of the FedEx Freight Board, said in the release.
FedEx announced in a December 2024 press release that its board of directors decided to pursue a full separation of FedEx Freight through the capital markets, saying that the move would allow for more customized operational execution while also maintaining the strategic advantages of cooperation on key commercial, operational and technology initiatives.
PYMNTS reported at the time that FedEx President and CEO Raj Subramaniam said during a December 2024 earnings call: “FedEx Freight has deep relationships with customers who turn to us for our reliability, simplicityand choice of services. Freight has maintained its leading market share position for a long time and increased operating profit nearly 25% on average per year over the last five years.”
In March, PYMNTS reported that LTL freight operates under different economic and competitive dynamics than parcel delivery and that housing both under one corporate structure can obscure performance and dilute strategic alternatives.
