FedEx Announces Expansion of FedEx Freight Direct

FedEx Freight, a subsidiary of FedEx Corp. (NYSE: FDX), a leading provider of less-than-truckload (LTL) services, announced the expansion of FedEx Freight Direct to more than 80 percent of the contiguous U.S. population following a pilot in select markets earlier this year. The new e-commerce solution offers delivery of bulky items such as furniture, TVs and exercise equipment by FedEx Freight team members into residences and businesses.

FedEx Freight Direct is the first standardized FedEx service to make deliveries through the door and into homes and will enhance delivery into businesses with new options. The service incorporates technology to increase shipment visibility, give consumers enhanced delivery choices, and offer exceptional convenience.

E-Commerce Growth in LTL Industry

The growth of e-commerce is rapidly changing customer expectations, creating new opportunities in the less-than-truckload (LTL) market. This includes an increase of inbound freight to distribution centers as e-commerce companies build more centers closer to their end customers, as well as deliveries of bulky items to customers who purchase larger items online and expect delivery inside their homes or places of business.

“Today’s consumers are just as comfortable purchasing a television or sofa online as they are groceries or books,” said Brie Carere, FedEx executive vice president and chief marketing and communications officer. “We’re seeing more oversized items move through our global network. FedEx Freight Direct is critical to addressing these challenges as part of our growing e-commerce portfolio.”

Reliability of FedEx Network and Expertise

FedEx Freight Direct offers convenient features of service and provides end-to-end visibility across the entire lifecycle of a shipment in one seamless network.

“Like the rest of FedEx, innovation is in our DNA at FedEx Freight,” said FedEx Freight President and CEO, John Smith. “We are proud to offer this innovative, e-commerce residential and commercial delivery service that leverages the speed and reliability of FedEx Freight’s leading nationwide LTL network to move these larger items safely into consumers’ homes and businesses.”

The expanded service draws on decades of FedEx experience to ensure reliability for customers. The FedEx Freight Direct delivery equipment, including trucks, were designed with significant input from FedEx Freight drivers specifically to operate in limited-access areas like residential neighborhoods. Team members who conduct these deliveries have undergone extensive training to provide exceptional customer service at these destinations.

Enhancing Consumer Choice and Convenience

The FedEx Freight Direct service and technology were designed using customer feedback and offers consumers more convenience and reliability with three service levels to meet speed and budget needs:

• Standard: Currently available to over 80% of the contiguous U.S. population through 173 service centers using the FedEx Freight Priority LTL network, Standard offers delivery into the first room of convenience in a residence or business. This includes a two-hour delivery window and the ability for customers to select delivery times and receive proactive notifications.
• Premium: Includes the same features as Standard along with delivery to room of choice and optional packaging removal. Premium deliveries will be conducted by two FedEx Freight team members to ensure safety and quality service.

• Basic: To the door service, currently offered as Residential delivery.

With to-the-door Basic coverage available to 100% of the contiguous U.S. population and Standard and Premium service coverage continuing to expand, FedEx Freight Direct will meet customer demands for delivery of heavy/bulky goods.