FedEx, one of the largest US parcel carriers and the largest US LTL carrier, announced that it would sell off its freight division to create a separate public company at some point in the next 18 months. The move is not a big surprise, as the shipping giant hinted at making such a move with the LTL division earlier this year.
The company cited the potential for new strategic opportunities brought about by the separation of FedEx Freight into an independent company as the reason for the reorganization. At this time, it is unclear how this change will impact shippers who have bundled parcel and freight agreements. Still, TransImpact will monitor the situation and provide additional insights as warranted.
Here is a link to the announcement:
FedEx Announces Intent to Separate FedEx Freight, Creating Two Industry-Leading Public Companies