FedEx Freight leans into AI

FedEx Freight is rebuilding its technology after the spin-off, cutting hundreds of applications and adding artificial intelligence tools before its June 1 launch as a standalone company. (fedex.com, fleetowner.com) At an April 8 investor day in New York, incoming chief executive John Smith said the less-than-truckload carrier would separate from FedEx on June 1, 2026, with a strategy built around network optimization, a dedicated salesforce, and a digitally enabled platform. FedEx said the business has about 40,000 employees across North America. (newsroom.fedex.com, ir.fedexfreight.com) Less-than-truckload shipping means multiple customers share space on the same trailer instead of paying for a full truck. FedEx Freight said it handles about 90,000 daily shipments with more than 365 locations and nearly 30,000 motorized vehicles. (ir.fedexfreight.com, constellationr.com) The company told investors its current customer technology is weighed down by systems built for parcel and global air shipping, not freight. Executives said the new setup will focus on freight-specific tools such as a specialized customer relationship management system, a new website, and a new billing platform. (fleetowner.com, constellationr.com) Chief Technology Officer Mike Rodgers said the team has cut the information-technology footprint by 20% and eliminated more than 300 applications. He said billing automation should reduce manual interventions by 60%, and starting a shipment should fall to one click from five on June 1. (fleetowner.com) FedEx Freight is also tying artificial intelligence to day-to-day freight work instead of a separate lab project. Constellation Research reported executives described machine-learning systems that use shipment-level and forecast data to model lane flows, choose truck or rail, and reduce handling time. (constellationr.com) On the dock, the company said it is using radio-frequency identification tags to improve tracking and has shifted planning from weight to cube-based dimensions, which measure how much trailer space freight actually takes up. That gives the carrier more real-time data on how to load trailers and route freight through its hub-and-spoke network. (constellationr.com) The timing is tied to a broader reset at FedEx. FedEx announced the separation on December 19, 2024, as it pushed ahead with its “One FedEx” integration of Express, Ground, and Services, leaving Freight to become its own public company. (fedex.com, supplychaindive.com) FedEx Freight is pitching the technology overhaul as part of a financial story too. At investor day, Smith said the company expects about $8.7 billion in 2026 revenue and $1.1 billion in adjusted operating income, or a 12% operating margin, with medium-term revenue growth of 4% to 6%. (cnbc.com, newsroom.fedex.com) For shippers, the immediate change is simpler booking, billing, and service tools from a carrier that is no longer sharing systems with the rest of FedEx. For rivals and freight-technology vendors, the June 1 spin-off sets up a public test of whether a cleaner stack and freight-specific artificial intelligence can turn operational fixes into faster growth. (fleetowner.com, constellationr.com)