US media outlets reported on 19 December 2024 that FedEx intends to separate its LTL transport business, FedEx Freight, into a standalone entity that could be listed on the stock exchange. The stated goal is to streamline its logistics structure, although declining volumes since the end of the pandemic might also be a contributing factor. FedEx has confirmed the plan, noting that if the split occurs, FedEx and FedEx Freight will continue collaborating on commercial, operational, and technological initiatives.
According to Bloomberg Intelligence, FedEx Freight is valued at approximately $30 billion, compared to an estimated $66 billion valuation for the entire FedEx Group. In 2023, FedEx Freight generated $9.4 billion in revenue. It is regarded as the leading LTL carrier in the United States, operating in a market where the top 25 carriers handle 90% of the volumes. This is a sector with high barriers to entry, requiring an extensive network of logistics hubs and a significant fleet of vehicles. The spin-off is expected to be completed within 18 months, and FedEx shares rose following the announcement of the plan.