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https://www.freightwaves.com/news/fedex-launches-long-awaited-operational-integration
FedEx Freight, the company’s less-than-truckload business, and FedEx Ground have begun to combine their vast line-haul operations, which combined ran 3.7 billion miles in the company’s most recent fiscal year that ended May 31, in a bid to reduce empty miles and improve equipment utilization. Greater use of rail intermodal networks has reduced so-called bobtail miles — mileage operated by a tractor with no trailer attached — by approximately 8 million miles, company executives said.
FedEx said the initiative will allow it to operate 100 fewer U.S. stations over the next five years even as it grows its volumes over that time. It also forecast a 10% reduction in U.S. pickup and delivery routes over that period. In areas with relatively low package density, business units will operate out of one station, executives said.
FedEx Freight, the company’s less-than-truckload business, and FedEx Ground have begun to combine their vast line-haul operations, which combined ran 3.7 billion miles in the company’s most recent fiscal year that ended May 31, in a bid to reduce empty miles and improve equipment utilization. Greater use of rail intermodal networks has reduced so-called bobtail miles — mileage operated by a tractor with no trailer attached — by approximately 8 million miles, company executives said.
FedEx said the initiative will allow it to operate 100 fewer U.S. stations over the next five years even as it grows its volumes over that time. It also forecast a 10% reduction in U.S. pickup and delivery routes over that period. In areas with relatively low package density, business units will operate out of one station, executives said.