Trucking news: FedEx announces improved less-than-truckload offerings

Jeff Berman, Senior Editor -- Logistics Management, 1/17/2008

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MEMPHIS—FedEx Freight said this week it has made significant service improvements for several U.S. markets, and it also announced that FedEx National LTL (formerly Watkins Express), its long-haul LTL unit, is now providing shippers with improved on-time service reliability after re-engineering its network.

On the FedEx Freight side, the company said it has halved transit times from two days to next-day for routes from the Las Vegas area to several cities in Central California, including Oakland, San Jose, Sacramento, and Bakersfield, as well as from Vancouver, British Columbia into the Pacific Northwest region of the U.S.

Douglas G. Duncan, FedEx Freight president and chief executive officer, told Logistics Management that these transit time improvements are the end result of a strictly engineered network that uses advanced technology to precisely plan the FedEx Freight’s routes and transit

“We can sometimes save an entire day in transit by making minor adjustments to the dispatch schedule,” said Duncan. “Density also helps us to load more direct shipments, bypassing the hub operation.”

And having its own footprint in Canada through FedEx Freight Canada allows FedEx Freight to provide next-day service between Vancouver, British Columbia and the Pacific Northwest, added Duncan. FedEx Freight Canada was established in February 2007. It provides transborder and less-than-truckload (LTL) services throughout Canada and provides all points coverage to more than 7,000 cities in 10 Canadian provinces.  The company was formerly Watkins Canada Express and was part of FedEx’ acquisition of Watkins Motor Lines in September 2006 for $780 million.

While there were network engineering implementations at FedEx Freight, Duncan said that the primary re-engineering efforts occurred at FedEx National LTL, noting that FedEx National LTL will now focus primarily on long-haul, complementing the regional service provided by FedEx Freight.

“FedEx National LTL now operates a strictly timed network, which ensures higher levels of certainty for [shippers],” said Duncan. “This is a major step in our delivering the strategy we announced a little over a year ago with the launch of FedEx National LTL and in meeting the needs that customers have shared with us.” 

Duncan also explained that FedEx Freight is continuously looking for ways to accelerate transit times. 

“FedEx Freight serves customers operating fast-cycle logistics, so any reduction we are able to provide helps customers streamline their supply chains,” said Duncan.

Aside from improved transit times, Duncan said shippers can also expect other benefits. The primary one he cited was that FedEx Freight and FedEx National LTL provide all points coverage in both regional and long-haul LTL sectors. 

“The changes we announced give [shippers] the ability to better manage inventory, whether operating fast-cycle logistics or planned replenishment,” said Duncan.

“Further, we are delivering on the commitment we made when we launched FedEx National LTL last February.  We are providing customers in the long-haul LTL market a cost-effective, reliable service, backed by the power of the FedEx brand.”