Hardware

FedEx confirms LTL freight spinoff

FedEx has announced the spinoff of its FedEx Freight LTL trucking unit into a separate, publicly-traded company within 18 months.

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December 20, 2024

FedEx has announced the spinoff of its FedEx Freight LTL trucking unit into a separate, publicly-traded company within 18 months, according to Trucking Dive.

The strategy echoes a similar move by UPS in 2021, which sold its LTL unit to TFI International, according to the report.

"This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market," Raj Subramaniam, CEO and president at FedEx Corp., said in a press release. "This announcement is a testament to the strength of the business our team has built, and to our dedication to doing what's best for our customers, our team members, and our stockholders. Through this process, we will unlock value for our Freight business and position FedEx to create even greater value for stockholders."