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FedEx names insider John Smith as the leader of its freight spin-off company

FedEx Freight, the company that specializes in freight trucking, announced on Monday that it had appointed John Smith as its CEO.

Smith has worked for the company more than 25 year as the chief operating office of its U.S.A. and Canada businesses.

Between 2018 and 2021, he was the CEO of FedEx Freight and was responsible for the growth in revenue and operating income. He also guided the company through the pandemic.

In December 2024, the company announced its first separation of its trucking freight segment. It restructured in order to provide a more customized execution on the global parcel and trucks markets.

FedEx is the U.S.'s largest provider of LTL (less-than-truckload) services. Analysts have long maintained that FedEx undervalues freight.

LTL is the process of transporting multiple shipments for different customers in a single truck. These shipments are then transferred through a network service centers to other trucks that have similar destinations.

Citi estimates that the independent company's value could range between $30 billion to $35 billion.

Daniel Imbro wrote that while there are still vacancies on the executive team this is the beginning of finalizing what FedEx Freight will look like as an independent business in 2026.

The divestiture should be complete by June 2026. Smith will continue to serve in his role until then.

FedEx also announced that Brad Martin, its vice-chairman of the board, has agreed to become chairman of FedEx Freight. (Reporting by Aishwarya Jain in Bengaluru; Editing by Arun Koyyur)

(source: Reuters)