FedEx Freight formally opens Vancouver service center

Last week, FedEx Freight held the grand opening of its new multi-million dollar Vancouver, British Columbia service center, which it said will connect the Western Canada LTL sector and customers through north-south, east-west and global shipping lanes.

By ·

FedEx Freight, the less-than-truckload (LTL) subsidiary of FedEx last week held the grand opening of its new multi-million dollar Vancouver, British Columbia service center, which it said will connect the Western Canada LTL sector and customers through north-south, east-west and global shipping lanes.

Company officials said that the new service center handles FedEx Freight shipments coast-to-coast through Canada, intra-BC and Alberta, as well as connecting international markets via road delivery and ocean networks like the Port of Vancouver.

“The planning for this new service center included an evaluation period of about two years,” FedEx Freight Vice President, International Grant Crawford told LM. “The development of this center provides additional capacity for long-term growth of existing cross-border business (between Canada and the U.S.), it helps us to better serve domestic Canadian business in the western region, and it provides us and our customers with access to traffic to and from the port in British Columbia for ocean shipments.”

This new facility, which is located on 16.42 acres, has been operational since January 2013 and has 77 cargo doors and more than 45 employees.

Crawford said that in addition to being able to make reliable connections in north-south, east-west and global shipping lanes, FedEx Freight’s Western Canadian customers also have access to one of the fastest LTL shipping networks in the U.S., where FedEx Freight Priority has the fastest published transit times of any nationwide LTL service. FedEx Freight provides direct coverage to most points in Canada (approximately 95 percent), and Crawford said its Freight International Services team works hard to speed up the border clearance process for cross-border freight shipments. This expansion also provides its customers with better access to the broad, FedEx portfolio of services in Western Canada that include FedEx Express, FedEx Ground, FedEx Freight, FedEx Trade Networks, among others, he stated.

“This new facility further extends the reliable freight shipping in Canada for which FedEx Freight is known, and it joins a network of over 360 service centers throughout North America,” he explained. “With other openings in Calgary and Toronto, FedEx Freight has demonstrated our commitment to the Canadian market and our desire to provide exceptional LTL (less-than-truckload) service for Canadian and North American customers alike.”

Fiscal third quarter revenue for FedEx Freight at $1.24 billion was up 0.8 percent from $1.23 billion last year, with an operating margin of 0.3 percent compared to -0.1 percent a year ago. FedEx Freight had an operating income of $4 million which was ahead of last year’s operating loss of $1 million.

FedEx Freight yield was up 2 percent due to improvements in its FedEx Freight economy yields, and average daily shipments rose 1 percent due to higher customer demand for the FedEx Freight Economy service offering for all lengths of haul. And daily LTL shipments rose 1 percent. Weight per LTL shipment was flat at 1,154 pounds, and composite LTL yield—at $20.03—was up 2.3 percent. The company pointed out that the quarter had two fewer operating days but Freight was still able to have higher operating income and margins due to gains in yield and volume along with operational efficiencies.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

FedEx Freight · LTL · All Topics
Latest Whitepaper
Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....