FedEx Freight said it will target small and midsize businesses as the less-than-truckload (LTL) company forecasts 4% to 6% medium-term compound annual revenue growth.
FedEx Freight is due to be spun off from FedEx on June 1, and said it was looking to save costs by modernizing its network and fleet. The company also announced that it is shifting billing and invoicing resources in-house and will nearshore the tasks, after most documents were previously handled by offshore vendors. A new 500-person LTL salesforce and specialized AI technology will support its strategy.
FedEx said in late 2024 it would spin off its freight business so it could focus on its core air-ground delivery network.
IAM Member Impact: Although unlikely to compete directly in the household goods moving market, FedEx Freight continues to provide transportation services to the industry.
Source: Wall Street Journal