All Access

Supply Chain Deals

Supply Chain Deals Alerts

Alert

John Smith, FedEx Freight's interim leader, has been selected to permanently head the parcel giant's less-than-truckload unit through its spinoff next year.

Why it matters: The spinoff, expected by June 2026, will rock the trucking industry by untying the nation's largest LTL carrier from its corporate parent.

State of play: Spinoffs have become an increasingly popular means of creating shareholder value in trucking and other industries.

FedEx Freight's separation could welcome new investors who perceive LTL as a better bet than parcel.

Spinoffs typically outperform their former parent companies and the S&P 500 within two years, according to Trivariate Research.

XPO executed a similar playbook in 2022, spinning off its brokerage and warehousing segments in a bid to shed the "conglomerate discount."

Between the lines: FedEx's move also acknowledges that LTL trucking and parcel are different beasts to operate, especially after UPS sold UPS Freight in 2021.   

Zoom in: FedEx board of directors vice chairman R. Brad Martin will serve as chairman of the board of FedEx Freight, the company announced.

Smith, who also leads the U.S. and Canada ground operations of Federal Express, previously led FedEx Freight from 2018 until 2021.

Lance Moll, who was president of the division until January, was expected to head it through the spinoff but announced his retirement instead.

What they're saying: "I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin," FedEx president and CEO Raj Subramaniam said.

What we're watching: Smith will need to help onboard a new sales team and navigate deferred truck purchases and other recent cost-cutting.

FedEx picks permanent CEO for FedEx Freight spinoff

John Smith will hold the reins through the upcoming spinoff of the nation's largest LTL carrier.

A FedEx Freight truck on a street in Manhattan on July 16, 2024.

A FedEx Freight truck on a street in Manhattan on July 16, 2024. Photo by Beata Zawrzel/NurPhoto via Getty Images

John Smith, FedEx Freight&#x27;s interim leader, has been selected to permanently head the parcel giant&#x27;s less-than-truckload unit through its spinoff next year.Why it matters: The spinoff, expected by June 2026, will rock the trucking industry by untying the nation&#x27;s largest LTL carrier from its corporate parent.

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

transportation

business

c-suite

retail-news

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

charlotte

salt-lake-city

denver

fort-lauderdale

boulder

kansas-city

austin

chicago

dallas

detroit

washington-dc

atlanta

indianapolis

nashville

nw-arkansas

columbus

hollywood

richmond

san-francisco

boston

des-moines

houston

phoenix

miami

philadelphia

seattle

new-orleans

colorado-springs

huntsville

raleigh

san-antonio

twin-cities

pittsburgh

arapahoe

douglas

san-diego

tampa-bay

portland

cleveland

axios-local

axios-pro

axios-live

the-axios-show

FedEx picks permanent CEO for FedEx Freight spinoff

What to read next