FedEx Freight, the less-than-truckload unit of FedEx Corp. (NYSE: FDX), confirmed Tuesday that it is closing seven service centers across the U.S. this year as the division continues to make alignments to its freight network.
“As the less-than-truckload industry evolves, at FedEx, we are continuing to adapt our freight network to meet forecasted demand and make adjustments that align with the evolving needs of the business,” a FedEx spokesperson told FreightWaves.
The seven facilities to be closed later this year represent approximately 1% of FedEx Freight’s overall door count, and some team members will be offered opportunities at nearby FedEx locations, the company said.
No specific dates were given for closures. It’s unclear how many workers will be affected.
The seven service centers slated to be closed are in:
- Chicago Ridge, Illinois.
- London, Kentucky.
- Kenova, West Virginia.
- Mount Vernon, Illinois.
- Wilmar, Minnesota.
- Yuma, Arizona.
- Zanesville, Ohio.
“Decisions of this nature are never made lightly and are the result of much thought and consideration for the needs of our business. We remain committed to expanding where the volume is and is forecasted to grow,” the spokesperson said.
The company said FedEx’s freight footprint remains significantly larger than its LTL competitors.
“We have approximately 30% more doors than our closest competitor and approximately 40% more than our second closest competitor,” the FedEx spokesperson said.
FedEx Freight closed 29 U.S. service centers from May to August 2023 as part of its ongoing efficiency drive.
Retired From FXF
FedEx Freight’s career link has no openings NATION WIDE. Sounds like they will be sold off soon. I have seen this happen before from experience with Viking Freight and CF.
LTL Reality Check
FDXF is rebalancing its operations as the LTL market continues to slow down. Customers and investors will benefit from their current plan.
Ones to watch are the carriers that purchased alot of Yellow Svc Cntrs and spending on higher CapEx that will be a struggling as the freight market gets back to normal. The Yellow business has already found alternatives and customers are now starting to renegotiate lower rates.
CA Trucker
LTL is way off. Not because of Biden or Trump. Everyone gives too much credit or blame on stuff like this to Presidents. We have a COVID hangover from buying so much while we were unable to travel and eat out, etc. Transportation had a few good years. Now people aren’t spending so no freight to move.
It’s gonna take a while.
TC Chen
Hi Richard,
Do you think the rise OTR and independent drivers have something to do with the decreased in LTL at UPS and FedEx?
TC
Mike
I work at FedEx Freight and agree, work has fallen off a cliff. It hasn’t been this slow since the recession of 2008-2010.
Robin Banks
Thanks to Biden.
Live Better. Work Union!
Not sure who homie Richard is above, but he’s wrong about UPS. The company is manipulating the volume to make people think exactly that. The volume is there. The work is there. The union members in each building need to step up and demand what’s theirs. That’s unfortunately the only way to get it back.
Not sure you info is good considering you’re on your 5th company in less than a year. Might wanna sit this one out, bubba.