FedEx Spins Off Freight Unit, Distributes One FDXF Share per Two Shares
FDX•FedEx spun off its Freight division, distributing one share of FedEx Freight (FDXF) for every two FedEx shareholders, separating its Ground/Express network and creating a distinct LTL vehicle. Ground package volumes have grown from 1.3M in 1998 to 13M daily, while Express dropped from 3M to 1.8M daily.
1. Freight Unit Spin-Off
On June 1, FedEx completed the spin-off of its Freight division into a standalone LTL business named FedEx Freight (FDXF). Shareholders received one FDXF share for every two FedEx shares held, leaving the parent company focused on parcel delivery through FedEx Express and FedEx Ground.
2. Volume Shifts Since 1998
At the time of the 1998 Caliber System acquisition, Regional Parcel Service (RPS) handled 1.3 million parcels per day alongside FedEx Express’s 3 million. E-commerce growth and ground-service demand have driven FedEx Ground to 13 million daily packages today, while Express volumes have declined to 1.8 million.
3. RPS Acquisition Impact
RPS pioneered a low-cost ground delivery model based on independent and master contractors, achieving nationwide coverage and a 15% market share by 1996. This operating framework fueled FedEx Ground’s expansion and has since been emulated by Amazon and regional carriers.
