FedEx will combine its FedEx Freight and FedEx National LTL operations effective January 30, 2011. This action will increase efficiencies and reduce operational costs. Additionally, it will provide customers a choice of priority or economy less-than-truckload (LTL) freight services across all lengths of haul from one integrated company. This change, along with the company's ongoing yield management initiatives, is expected to substantially improve the profitability of the FedEx Freight segment in fiscal 2012. What you won’t hear is that they likely will consolidate with a single base tariff, the FedEx tariff. That will essentially increase pricing for the soon-to-be former FedEx National customers. That being said most of the FedEx customer base could be oblivious to this change. Most of the FedEx National customers would benefit from a Transportation Management System like what TOP has to offer. We can help them with the transition of being stuck the new tariff increase and give them options to shop for better pricing in our system.
