FedEx Freight

What FedEx Freight does

FedEx Freight is the largest pure-play Less-Than-Truckload (LTL) carrier in North America, holding 17% market share and operating 355 service centers and a 30,000-vehicle fleet across the U.S., Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. The company was spun off from FedEx Corporation on June 1, 2026, and now trades independently on the NYSE under ticker FDXF, with FedEx retaining a 19.9% stake slated for divestiture within 24 months. Headquartered in Memphis, Tennessee, FedEx Freight employs approximately 40,000 team members and generates revenue by consolidating multiple smaller shipments into single trailers for B2B customers across verticals including healthcare, grocery, data center infrastructure, energy, and small-to-medium businesses.

The company operates a sales-led go-to-market with over 500 dedicated LTL sales representatives targeting high-margin specialized freight sectors. Its technology stack includes AI-driven network optimization via a data flywheel, a Salesforce-based CRM platform, and an autonomous line-haul partnership with Aurora Innovation that has logged 60,000+ pilot miles with 99.9% autonomous operation. FedEx Freight raised $3.7 billion in senior notes debt in January 2026 to fund the spin-off and operates with $4.3 billion in debt alongside a target of over $1 billion in annual free cash flow.

The business model is transaction-based LTL shipping revenue with a usage-based fuel surcharge component. Pricing is quote-based on weight, distance, and freight class, with Q4 FY2026 revenue per shipment rising 11.5% year-over-year even as shipment volumes declined 5.9%. Management's medium-term targets are 4-6% revenue CAGR, 10-12% adjusted operating income growth, and 15% operating margin (expanding from approximately 12%), driven by yield management, vertical mix shift, network optimization, and autonomous line-haul deployment pending regulatory approval.

Name

FedEx Freight

Legal name

FedEx Freight Holding Company, Inc.

Website

https://fedex.com

Company type

Public

Founded year

2026

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

FedEx Freight is North America's largest pure-play Less-Than-Truckload (LTL) carrier, operating 355 service centers and a 30,000-vehicle fleet to consolidate and ship freight for B2B customers across healthcare, grocery, data center, energy, and SMB segments in North America.

Ownership category

akta.pro rank

Product category

Less-Than-Truckload (LTL) Freight Transportation

NAICS

General Freight Trucking (4841), General Freight Trucking, Long-Distance (48412), General Freight Trucking, Local (48411)

SIC

Trucking & Courier Services (No Air) (4210), Trucking (No Local) (4213)

akta.pro primary industry

National/Regional LTL General Freight Carriers (TLADAEAA)

akta.pro secondary industries

Pool Distribution / Multi-Stop LTL Carriers (TLADAEAF), Cross-Border LTL (US-MX/US-CA) (TLADAEAI), Intrastate LTL Carriers (TLADAEAD)

Keywords

• Less-than-truckload freight
• LTL shipping services
• Freight transportation
• Logistics solutions
• Specialized freight shipping

Headquarters

HQ city

Memphis

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Revenue model

1. LTL Freight Shipping Services: Less-than-truckload freight shipping services consolidating multiple smaller shipments into single trailers. Revenue of $2.4 billion in Q4 FY2026, up 4.8% year-over-year. Revenue growth driven by higher fuel surcharges, heavier shipments, and increased revenue per shipment (11.5% spike).
2. Fuel Surcharges: Fuel surcharges applied to freight shipments contributing to revenue growth alongside base freight rates

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels3 records

Core offering

FedEx Freight is North America's largest pure-play Less-Than-Truckload (LTL) carrier, operating 355 service centers and a 30,000-vehicle fleet across the U.S., Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands. The company consolidates multiple smaller shipments into single trailers and provides time-sensitive freight transportation primarily to enterprise customers in healthcare, grocery, data center infrastructure, and energy sectors. Post-spin-off from FedEx Corporation in June 2026, it operates as an independent publicly traded entity with AI-driven network optimization.

Product overview

FedEx Freight is a core LTL (Less-Than-Truckload) shipping platform that operates as the largest pure-play LTL carrier in North America. The company provides freight transportation services by consolidating multiple smaller shipments into single trailers for efficient delivery. Post-spin-off from FedEx Corporation (completed June 1, 2026), the standalone company offers specialized freight services targeting high-margin segments including healthcare, grocery, and data center infrastructure customers, leveraging its nationwide network of service centers and fleet of vehicles.

Differentiator

Problem solved

Functional benefit

Products and services

• FedEx Freight LTL Shipping

Quantifiable outcome

• 12% improvement in cube utilization over the past year
• +4 more outcomes

Named customers4 records

Segments5 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

One partnership is on record.

• Aurora InnovationcoreTechnology or Integration · 2 June 2026FedEx Freight and Aurora Innovation completed a multi-year autonomous line-haul pilot covering 60,000 miles with zero safety incidents on Texas routes between Dallas and Houston. The technology functions without driver intervention in 99.9% of test runs. Regulatory barriers remain the primary constraint preventing fully driverless commercial operation, as no public regulatory approval for unattended interstate trucking has been issued.

Scale indicators11 records

Recent moves9 records

Expansion highlights5 records

Direct peers

• Old Dominion Freight Line: The largest and most consistently profitable LTL carrier in the U.S., operating a terminal-dense network that mirrors FedEx Freight's national LTL model. Old Dominion is the primary benchmark for LTL operating margin and yield discipline.
• Saia Inc. A publicly traded LTL carrier with a rapidly expanding terminal footprint across the U.S. Saia competes head-to-head with FedEx Freight in regional and inter-regional LTL service and has posted industry-leading volume growth.
• XPO Inc. Following its 2022 spin-off of RXO, XPO is a focused LTL carrier with a national network and comparable terminal count to FedEx Freight. Direct competitor in LTL pricing, capacity, and service quality.
• ArcBest Corporation: A multi-mode logistics provider combining LTL services (ABF Freight) with truckload brokerage and asset-light logistics. Direct LTL competitor and a relevant comparison for network economics and intermodal diversification.
• Estes Express Lines: One of the largest privately held LTL carriers in the U.S., operating a nationwide terminal network. Directly comparable in service offering and customer segments to FedEx Freight, particularly in eastern U.S. lanes.
• TForce Freight: The LTL subsidiary of TFI International, formed from the acquired UPS Freight assets. A direct LTL competitor with comparable service center density and a similar focus on operational efficiency.

Broad incumbents

• RXO Inc. A large North American freight brokerage and transportation provider spun off from XPO. Not a direct LTL operator but a meaningful competitor for truckload-converted freight that FedEx Freight is targeting to offset LTL volume declines.
• Knight-Swift Transportation: The largest truckload carrier in North America with growing LTL exposure through its U.S. Xpress and AAA Cooper acquisitions. Represents competitive pressure from TL carriers expanding into LTL space.
• Schneider National: A large multi-mode carrier offering truckload, intermodal, and logistics services with growing LTL capabilities. Competes for similar enterprise customers and freight volumes, particularly intermodal conversions.
• J.B. Hunt Transport Services: A major intermodal and dedicated truckload carrier with limited LTL exposure but serving many of the same enterprise shippers. A broad logistics incumbent relevant for cross-mode competitive dynamics.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about FedEx Freight