FedEx Freight makes service improvements into and out of Canada

FedEx Freight, the less-than-truckload (LTL) subsidiary of FedEx, announced it has made significant improvements for its shipments moving in and out of Canada.

The company said it has reduced transit times in more than 500 lanes connecting Toronto and Montreal to dozens of cities and regions in the United States. And it added that these efforts will enable cross-border LTL shippers to achieve various improvements in their supply chains.

“These enhancements have taken place throughout the year as we’ve continue efforts to maintain a leadership position in intra-Canada and cross-border LTL shipping,” said Grant Crawford, vice president-General Manager, FedEx Freight Canada, in an interview.  “It’s important to note that these service improvements are region-to-region in scope, not just point-to-point. We’ve also made it a priority to ensure these enhancements apply to southbound lanes in addition to northbound lanes, which benefits Canada-based LTL shippers moving their products to U.S.-based customers.”

Crawford also explained that all FedEx Freight Canada shippers can benefit from these enhancements, in particular those shippers moving freight between regions where service improvements have been rolled out. And shippers’ customers benefit as well, he noted, as their products may be transported faster across the border to their destination. 

The new FedEx Freight north and southbound transit time reductions are comprised of the following:
three-day service improved to two-day service between Atlanta and Savannah, Ga., Charlotte, N.C., Charleston, S.C., Birmingham, Ala., and Toronto, Mississauga and Hamilton, Ontario;
-three-day service reduced to two-day service between Memphis, Tenn., St. Louis and Kansas City, Mo., and Toronto, Mississauga and Hamilton, Ontario;
-three-day service improved to two-day service between Milwaukee, Rockford, Ill., St. Louis, Mo., and Montreal;
-four-day service reduced to three-day service between Denver, Houston and other cities in the central U.S. and Montreal; and
-five-day service reduced to four-day service between Los Angeles, Seattle and other points on the West Coast and Montreal.

FedEx Freight Canada also said that it has expanded its service center network, adding new locations in Mississauga and Hamilton, Ontario in the Greater Toronto area, which will provide all-points coverage to more than 700 cities in ten provinces, coupled with trans-border service for shipments to and from the U.S. and other locations.

Crawford declined to provide any facility-level shipment or traffic information at this time in regards to the two new locations.

Earlier this year, FedEx Freight announced plans to combine its FedEx Freight and FedEx National LTL operations, effective January 30, 2011 in an effort to increase efficiencies and reduce operational costs.

Company officials said that this move will provide shippers with a choice of priority of economy less-than-truckload freight services “across all lengths of haul from one integrated company” and will also substantially improve profitability for FedEx Freight in fiscal 2012. FedEx said the estimated costs of this effort is $150-to-$200 million and will include severance costs related to personnel reductions, lease terminations, and certain proceeds from asset sales. Headcount is expected to be reduced by roughly 1,700 employees and about 100 facilities will be closed.

“FedEx Freight’s unmatched…priority and economy LTL services will deliver unique value to customers and make FedEx Freight an even more important element in our unmatched portfolio,” said Frederick W. Smith, FedEx Chairman, President, and CEO, in September.