FedEx Freight, the less-than-truckload unit of FedEx Corp. (NYSE: FDX), has confirmed plans to close seven service centers across the United States in 2024 as part of its ongoing efforts to optimize its freight network.
The term “less-than-truckload” (LTL) refers to a shipping method used by freight companies to transport relatively small freight shipments that do not require the use of an entire truck trailer. Instead of occupying an entire trailer, LTL shipments share space with other shipments, allowing multiple shipments from different customers to be consolidated into a single truckload.
In the context of FedEx Corp., the “less-than-truckload unit” refers to the division within the company that handles LTL freight shipments. FedEx Freight is the specific division responsible for managing and transporting LTL shipments for customers.
A spokesperson for FedEx stated, “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.”
The closures, slated for later this year, will impact approximately 1% of FedEx Freight’s overall door count. While specific closure dates were not provided, the company mentioned that some team members affected by the closures would be offered opportunities at nearby FedEx locations.
The seven service centers earmarked for closure are located in:
- Chicago Ridge, Illinois
- London, Kentucky
- Kenova, West Virginia
- Mount Vernon, Illinois
- Wilmar, Minnesota
- Yuma, Arizona
- Zanesville, Ohio
The decision to close these facilities was made after careful consideration and analysis of the company’s operational needs. The spokesperson emphasized that FedEx remains committed to expanding its operations in areas with projected growth in volume.
Despite the closures, FedEx Freight maintains a significant footprint in the industry, boasting approximately 30% more doors than its closest competitor and 40% more than its second closest competitor.
This announcement follows the closure of 29 U.S. service centers by FedEx Freight between May and August 2023, as part of its ongoing efficiency initiatives.
