FedEx gives truck drivers vacation before peak sales season

It is learned that on November 12, FedEx Freight, the LTL business of FedEx and the largest LTL carrier in the United States, said that it would allow an indefinite number of freight drivers to take leave starting in early December. The leave plan lasts for about 90 days, during which time the workers on leave will continue to receive health benefits and will be allowed to apply for unemployment benefits in their respective states of residence. The department said in a statement that some eligible employees will be given the opportunity to permanently transfer to other markets with recruitment needs.

FedEx Freight spokeswoman Miranda Yarbro said the furloughs are expected to affect a small number of drivers, not all drivers will be offered the opportunity and they are voluntary.

The division has about 45,000 employees. It was not immediately clear how many drivers were hired.

The sector said the move was in response to the macroeconomic slowdown that has impacted LTL demand in recent weeks. The LTL sector had shown very strong growth during the pandemic, but volumes have recently leveled off due to economic uncertainty caused by high inflation and recession fears.

FedEx Freight has been the best performer of FedEx's three shipping business units. Its two larger units, FedEx Express and FedEx Ground, have been hurt by high costs and lower-than-expected demand. In contrast, FedEx Freight is focused on profitable growth and is willing to cut unprofitable businesses to achieve profit growth.

FedEx Freight reported a 67% increase in operating revenue in its first quarter of fiscal 2023, which ended on August 31. The parent company reported that these gains were driven by increased shipment volumes as well as the positive impact of higher fuel surcharges.

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