Effective November 4, 2025, FedEx Freight will officially become an independent company, separating from the Federal Express Corporation. While this move marks a major shift in the logistics industry, FedEx has assured customers that the two companies will continue to work closely together.
What’s Changing
According to the announcement, FedEx Freight will operate independently but maintain close collaboration with FedEx Express and FedEx Ground. For customers, the day-to-day account management, service levels, and support systems will remain unchanged – at least initially.
However, this separation allows FedEx Freight to focus more strategically on its Less-Than-Truckload (LTL) shipping portfolio. The company plans to invest in improved digital shipping tools and enhance its customer support capabilities.
Key Dates to Know
- Effective Date: November 4, 2025
- Bundled Discounts: If your business currently receives a combined earned discount with FedEx and FedEx Freight, you’ll be contacted before June 1, 2026, with new, separate discount structures.
How This Affects eCommerce Sellers
1. Potential Pricing Adjustments
eCommerce businesses that ship a mix of parcel and freight orders may soon see their discount tiers split between the two entities. This could result in pricing changes – possibly reducing combined shipping savings unless FedEx introduces new bundled programs.
2. Specialization Could Mean Better Service
The independence of FedEx Freight might bring more tailored LTL solutions. Sellers shipping pallets or large, heavy items could benefit from improved transit visibility, faster freight processing, and more specialized customer support.
3. Separate Accounts and Contracts
Businesses working directly with FedEx Freight may eventually need separate contracts or account logins, depending on how integration between systems evolves. This could mean additional administrative work but also clearer performance tracking for LTL shipments.
4. Competitive Ripple Effect
With FedEx Freight striking out on its own, other logistics providers – including UPS and regional LTL carriers – may respond with new pricing incentives to attract merchants. eCommerce sellers should monitor these developments closely and compare options before renewing contracts.
5. Strategic Opportunity for Multi-Carrier Shippers
This shift underscores the importance of multi-carrier shipping strategies. Sellers using fulfillment software that supports multiple carriers (like ShipStation, EasyPost, or Shippo) will be in a strong position to adapt quickly to any pricing or policy changes.
What You Should Do Next
- Monitor Communications: Expect updates from FedEx or FedEx Freight about new agreements or discount structures by mid-2026.
- Review Shipping Mix: Evaluate how much of your business relies on LTL freight versus parcel shipping.
- Compare Alternatives: Keep an eye on competitor rates from UPS Freight (now TForce), XPO, and regional carriers.
- Ask Your Rep Questions: Reach out to your FedEx or FedEx Freight sales representative to understand how your specific account will transition.
Bottom Line:
While no immediate action is required for most sellers, this separation signals a long-term shift in how FedEx manages freight operations. eCommerce businesses that stay proactive – especially around pricing and service adjustments – will be best positioned to benefit from the changes.