FedEx Freight Spinoff Set to Create Nation's Largest LTL Carrier
FedEx is moving full steam ahead with plans to spin off its freight division, filing the necessary SEC paperwork on Friday for a June 1 launch. The new standalone company will instantly become the largest less-than-truckload carrier in the United States—a significant shake-up in the LTL sector.
The logistics giant filed a Form 10 registration statement with the U.S. Securities and Exchange Commission, marking a major milestone in a process that started 12 months ago. Since the initial announcement, the plan has earned consistent praise from financial analysts and stock market investors who see value in separating the focused LTL operation from FedEx's broader portfolio.
"Today's Form 10 filing reflects the strong progress we are making toward the launch of FedEx Freight as a focused, industry-leading LTL company," said Raj Subramaniam, FedEx Corp. president and CEO. "This separation will create two world-class companies, positioning both FedEx and FedEx Freight to better serve customers and unlock long-term value for all stockholders."
New Leadership Takes Shape
Along with the SEC filing, FedEx announced the 10-member board of directors who will guide the independent FedEx Freight. The company emphasized that the board brings "veteran leaders with transportation and logistics, financial, and technology expertise" to the table. R. Brad Martin, currently executive chairman of the FedEx Corp. board, will serve as chairman of the new FedEx Freight board.
For 3PL operators and logistics providers, this spinoff represents a major market shift. A standalone FedEx Freight with dedicated leadership and resources could mean more aggressive pricing, enhanced service offerings, and potentially new partnership opportunities. The separation also signals FedEx Corp.'s strategy to sharpen focus on its express and ground operations, which could reshape competitive dynamics across multiple service tiers.
