AMERICA's biggest trucking company FedEx Freight is cutting costs as it adapts to a softer US economy and weaker less-than-truckload (LTL) freight market, reports New York's Journal of Commerce.
FedEx Freight will close 29 bases out of 400 LTL terminals by August, the company told Wall Street analysts. FedEx Freight also cut US$330 million in operating expenses in its most recent fiscal quarter that ended May 31, the company said.
FedEx Freight handled 92,986 LTL shipments per day in its most recent quarter, the second quarter since the height of the recession in 2020 that shipments per day dropped below 100,000. In the calendar second quarter, ODFL handled 47,155 shipments per day, a 9.6 per cent year-on-year decrease.
Both economy and priority LTL shipments declined from a year ago, according to data released by FedEx. Economy shipments dropped for the fifth straight quarter, but priority LTL shipments rose slightly from the previous quarter.
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