FedEx Freight has launched its new long-haul, less-than-truckload (LTL) services in the US andCanada following the acquisition last year of Watkins Motor Lines.
The Memphis-based corporation announced yesterday that its FedEx National LTL and FedExFreight Canada services were now fully operating following the hiring of close to 9,000 employees,the rebranding of equipment and the integration of web sites. FedEx paid $780 million for WatkinsMotor Lines and Watkins Canada Express in September.
“In five months, we have made tremendous progress in our strategy of providing a reliable andcost-effective service for long-haul shippers,” said Douglas Duncan, president and CEO of FedExFreight.
“The cultural fit between the former Watkins Motor Lines and FedEx, with a shared focus onemployee engagement and customer service, has made it possible for us to achieve a great deal in ashort period of time.”
FedEx said it had re-engineered National LTL operations, keeping it to a strictly schedulednetwork that would enhance on-time performance. Freight Canada would handle LTL shipments in, outand within Canada.
FedEx National LTL and FedEx Freight Canada each operate as a separate network within theFedEx Freight segment, which also includes FedEx Freight, FedEx Custom Critical and CaribbeanTransportation Services, and disposes of 470 service centres and 54,000 trucks and trailers.
FedEx Freight increased revenue by 31% to $1.23 billion during the quarter in which itacquired Watkins, but operating margin dropped to 11.3% from 14.5% due to the cost of integratingthe business. FedEx Freight revenues totalled $3.6 billion in 2006.
