Jeff Jackson’s Post

Wow, not something that I would have thought would be happening. FedEx Freight has been around since I was in college many years ago. FedEx Freight was an entire SBU (Strategic Business Unit) as part of FedEx Corp. Well, at least when I was involved at FedEx. I wonder why FedEx Corp. desires to divest of FedEx Freight. Especially being that FedEx Freight is the corporation's best-performing SBU in the group with operating margins of 20% in the last two fiscal years. FedEx Freight is the largest LTL (Less-Than-Truckload) carrier in the nation and has efficiencies that no other LTL carrier has in North America. I understand that given FedEx Freight's unique position in the market that a true sale would be near impossible and a spin-off seems most appropriate. However, that strategy does not come without risks. I hope that whatever is happening works out. Link to article below. https://lnkd.in/g_-jYrKN

On June 26th, The Wall Street Journal reported that FedEx may spin off their Freight division - and the most interesting part is why. 🎧 https://lnkd.in/eCts-EZz FedEx Freight is the most profitable division of the company, with a recent operating margin over 20 percent, compared to 11.8 percent for FedEx Ground and 2 percent for FedEx Express. With estimated valuations between $30 and 50 Billion, it is too big to be bought, but too small of a division of FedEx to stay. Pending an internal review scheduled to be complete later this year, FedEx Freight is likely to have a future as a standalone company. #supplychain #freight #LTL Art of Supply

Recently in logistics, Ryder System underscores the challenges and high costs obstructing the broader adoption of electric trucks. Ontario is fueling its future with a significant $15 million investment in its critical minerals sector. Mullen Group enhances its service offerings through the strategic acquisition of ContainerWorld Forwarding Services. FedEx Express warns of potential delivery delays across the U.S. due to severe weather conditions in Memphis and Portage. Amazon elevates its logistics operations by adding 10 Boeing 767-300 freighters from ATSG, underlining a robust expansion in e-commerce delivery capabilities. Learn more by reading our latest logistics update: https://lnkd.in/eJGhaKFn #NLS #logistics #supplychains #biweeklyroundup

FedEx Wishes It Could Sell Its LTL Business, But No One Can Afford It FedEx president and CEO Raj Subramaniam confirmed that senior leadership is reviewing the Freight business to see if it continues to have a place. He highlighted UPS selling off their freight work, stating it didn't have a negative impact on the overall business. But, FedEx Freight is the largest LTL carrier in the US. And, it's the corporation’s best-performing segment, with operating margins of 20 percent each of the past two years compared with margins of 11.8 percent for Ground and 2 percent for Express. The biggest problem though? No one could afford it. Who's got $50B to drop on a massively asset heavy business? The most likely outcome is a spinoff. This would end up creating the same type of situation that XPO went through spinning off GXO (note - the combined stock values soared). What are your thoughts? Good move to want to sell your best stuff? PS - Another point of contention, analysts feel that LTL is going to be the best segment to be in for the next three years

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FedEx’s potential shakeup of its freight division could significantly impact the LTL trucking market. Exploring options for this division signals big changes ahead. This move reflects the rapidly evolving logistics landscape. Two key takeaways: 1. FedEx is considering changes to its freight division, potentially restructuring for improved efficiency and profitability. 2. These changes could reshape the LTL trucking market, fostering more competition. Adapting to these changes will be key to staying competitive. Stay informed to stay ahead. #SupplyChain #Logistics #FreightManagement #LTLTrucking #IndustryTrends

Got challenging Ice cream LTL shipments. Came up with solution combining some of LTL shipments and connecting dots. Hope will get this project 😉. LTLs are challenging but yes rewarding too just has to be cautious while handling them . Had a great day 😄 Hope you all had a great day 😊 #freight #transportation #logistics #LTL #carriers #trucks #icecream #supplychain

Less-than-truckload carriers Old Dominion Freight Line, TForce Freight and Saia Inc. are eager for a rebound in manufacturing demand as they handle more retail freight than their typical share. This impacts the revenue profile of retail freight as the carriers are paid by weight. #trucking #supplychain #retail

Walmart and J.B. Hunt Transport Services, Inc. struck a deal to deepen their intermodal partnership, with the retailer selling its assets and both firms raising their volume and capacity commitments. Here's what it means for each, and what one expert says it may mean for Walmart's approach to #fleetmanagement. 👇 #intermodal #supplychainmanagement

How many times have you seen a #FedEx Express van and FedEx Ground van on the same street often picking up and delivering to and from the same address? I've seen it more times than I can count. FedEx leadership finally got tired of seeing the same. Here's a really good article outlining FedEx's efforts to streamline its delivery network. #WSJ subscription required. A few key takeaways of my own, however: 1. Combining networks sounds like a simple task but it's a tremendously complex initiative that's closer to a corporate merger than reengineering an operation. 2. It's easy to suggest FedEx should have done this a long time ago, but the truth is technological advances make this easier to do than it ever would have been before. The old structure served the former times well. 2024 and beyond requires new methods. 3. People naturally resist change... but FedEx is making the right moves here and executing exceptionally well so far. That said, I started my work at FedEx at FedEx Freight and I hope they don't sell it off. My heart has a fondness for LTL. https://lnkd.in/enfePizc