Zachary Ramsay’s Post

Interesting development in the freight world!

So, what do you think about this?! Increasing shareholder value? At a time where we see a contraction on the number of Transcontinental LTL Carriers and a relative contraction in the LTL segment (for now) Another potential sale or spinoff. Don't get me wrong, they could stand on their own and turn a profit, a nice profit, as they absorbed the Watkins System, American freight and Viking Freight . They have the people and the equipment. They could stand alone. Would a PE Group jump in? They also see Value in the pieces and possibly the whole company, but they would want their return quickly. I don't see any of the larger forwarders jumping in. KN should have grabbed Forward Air weeks ago as that would have been a real game changer, they still can't get their road act together. This could be very interesting down the road. Business will bounce back Q3 and Q4 and their busy season starts! #LTL #roadfreight #supplychain #mergersandacquistions #Shareholdervalue #getreadytolayoff #smallpackadoesnotrelatetoLTL

Separating FedEx Freight from FedEx parcel would provide fantastic shareholder value…FedEx Freight has operated as a seperate company within the organization, the distinction here would be that they would be a seperate legal entity, a seperate public company and they would make decisions that would impact only the freight business. Currently the freight opco represents 10% of FedEx revenue, but it’s the most profitable entity. A tremendous amount of back office resources for the company are dual meaning they handle parcel and freight, when only 10% of your revenue (and even shipments) come from freight your back office becomes very familiar with parcel, and decisions are made with little and sometimes no thought to freight. This could be tremendous for FedEx Freight, I only wish they had done this while I was still there. FedEx Freight is a tremendous company and deserves senior leadership with an undivided focus on this operating company.

Interesting article by Eric Kulisch with FREIGHTWAVS with potential impact to the LTL Freight industry and customers. "FedEx is conducting a strategic analysis of the company’s less-than-truckload segment and its relative value to the company, suggesting that FedEx Freight could be sold or spun off so the company can focus on its parcel and logistics business."

FedEx Freight, the best-performing segment of FedEx Corporation (NYSE: FDX), has continued to impress with operating margins of 20% for the past two years. In contrast, Ground and Express segments reported 11.8% and 2% margins in 2023. During the fourth quarter, FedEx Freight saw a $58 million increase in operating income, showcasing a focus on revenue quality and cost management that led to higher yields despite a soft demand environment. As the largest LTL carrier in the nation, FedEx Freight stands out for its exceptional efficiency, boasting an operating ratio of 80%, second only to Old Dominion Freight Line (ODFL). #FedEx #Freight #Logistics #Efficiency #NYSE #FDX #ODFL #OperatingMargins

This is a shoe I've been waiting to see drop for quite some time. Technically still waiting, but this is a relatively strong signal from FedEx that it is possible sooner rather than later that we'll see the largest LTL carrier in the US spin off to either an entirely separate company or reverse merge with another major LTL provider. Very interesting development in the ongoing saga of FedEx trying to rationalize itself. #freightwaves #fedex #transportation #logistics #ltl #ltlshipping #trucksandtrucking #trucking #didiusethattermright

Both FedEx and UPS are either considering or have already divested their Freight businesses… both companies refocusing on their core Parcel and Logistics services. Long term, is this the right strategy…what do you think? #freightforwarding #parcelshipping; #logistics #supplychain #crossborder #longislandbusiness

Trucking companies going bankrupt may seem like a tough blow, but it's actually a welcome sign for the industry. Why? Because it's shrinking the overcapacity that has been plaguing the freight sector for over a year. While freight demand is showing signs of rebounding, the supply side remains bloated. The exit of capacity is crucial for restoring balance, and bankruptcies, though unfortunate for individual operators, contribute to this necessary adjustment. Read more about this controversial yet rational perspective: https://lnkd.in/dkdiStHD #truckingindustry #freight #supplychain #bankruptcies #bloomberg

Conventional wisdom among freight carriers is financially struggling competitors will exit the business or be acquired. With that in mind, here is an article you don't see everyday: "How to buy a trucking company". https://lnkd.in/gBpuWcMY #freight #trucking #mergersandacquistions #transportation #cargo #multimodal #ltl #truckload

What's behind TFI's strategic focus on LTL operations ahead of its 2025 split? Montreal-based TFI International Inc. has announced the purchase of LTL carrier Hercules Logistics and Forwarding Ltd. TFI, an LTL carrier with an emphasis on intra-U.S. and U.S.-to-Canada cross-border transportation, made 12 acquisitions in 2023 and has a 2024 focus to turn around its U.S. LTL operations. Hercules, which operates 31 terminals and 210 trucks with 2023 revenue over $100 million, was founded in 1985 and is headquartered in Vernon, CA, with Canadian headquarters in New Westminster, BC. 📌 JBF PERSPECTIVE - Insights from Mike Wolf The changing LTL landscape continues with this announcement coming along with the LTL carrier Old Dominion Freight Line (ODFL) recently announcing the opening of a 147-dock door terminal in Tannersville, PA, giving ODFL more breakbulk capacity in that region. For TFI, the U.S. LTL operation turnaround focus is to help position the company for its likely splitting into two publicly traded entities in 2025 —one entity for truckload & one entity for LTL/package/courier/logistics. The U.S. LTL operating ratio (OR) of 91 in Q4 of 2023 is far too high compared to its Canadian LTL OR of 79.9. Bottom line—LTL industry changes are happening with some cadence and appear to be continuing. 𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝘀𝗵𝗶𝗽𝗽𝗲𝗿𝘀? As a shipper, you need to understand the strategy of each LTL provider so you can line up with the right partners to meet your LTL needs now and in the near future. Read the full story in Transport Topics by Keiron Greenhalgh: https://lnkd.in/eZvxviqU Follow 🔔 #jbfreporter for industry news updates