FEDEX and fedex Freight will split into two public companies as it is believed that 'separation unlocks significant value', reports London's Air cargo News.
FedEx Corporation confirmed the decision in its fiscal second quarter 2025 earnings presentation. The aim is to grow FedEx Freight's position in the Less than truckload (LTL) market.
The company said: 'FedEx and FedEx Freight will benefit from enhanced focus and competitiveness.' However, it added that it planned to 'continue to enable commercial, operational and technological cooperation'.
Rajesh Subramaniam, FedEx president, chief executive and director, said in the Q2 earnings call that 'we expect to execute the separation within 18 months'.
Elsewhere, FedEx has redesigned its Tricolor global air network. 'Our international air network design strategy is improving density and asset utilisation across the enterprise,' said the company.
John Dietrich, executive vice president, chief financial officer, stated: 'And the ramping of our Tricolor strategy drove higher average daily pounds and yields year over year for Federal Express International Freight.'
One of FedEx's goals for next year is to increase its global air freight market share, noted Brie Carere, executive vice president, chief customer officer.
'This is a market with significant potential. We currently have a low single digit market share in the US$80 billion air freight market. International priority freight already serves as a profit DRIVEr for us. Our tricolor strategy is a necessary condition to competing and winning in this market.
'Commercially, we've also made numerous changes to improve our performance. We have created a dedicated sales organisation, a new customer service model, and are investing in the digital experience. The air freight market is fragmented and the shipping processes are antiquated. It's a market ripe for disruption.'
SeaNews Turkey
FedEx Corporation confirmed the decision in its fiscal second quarter 2025 earnings presentation. The aim is to grow FedEx Freight's position in the Less than truckload (LTL) market.
The company said: 'FedEx and FedEx Freight will benefit from enhanced focus and competitiveness.' However, it added that it planned to 'continue to enable commercial, operational and technological cooperation'.
Rajesh Subramaniam, FedEx president, chief executive and director, said in the Q2 earnings call that 'we expect to execute the separation within 18 months'.
Elsewhere, FedEx has redesigned its Tricolor global air network. 'Our international air network design strategy is improving density and asset utilisation across the enterprise,' said the company.
John Dietrich, executive vice president, chief financial officer, stated: 'And the ramping of our Tricolor strategy drove higher average daily pounds and yields year over year for Federal Express International Freight.'
One of FedEx's goals for next year is to increase its global air freight market share, noted Brie Carere, executive vice president, chief customer officer.
'This is a market with significant potential. We currently have a low single digit market share in the US$80 billion air freight market. International priority freight already serves as a profit DRIVEr for us. Our tricolor strategy is a necessary condition to competing and winning in this market.
'Commercially, we've also made numerous changes to improve our performance. We have created a dedicated sales organisation, a new customer service model, and are investing in the digital experience. The air freight market is fragmented and the shipping processes are antiquated. It's a market ripe for disruption.'
SeaNews Turkey