New year, new me. It's not just the motto for seasonal gym-goers and those who follow the latest TikTok-trending diet. It's the reality for FedEx Freight. In its Q2 2025 earnings call on December 19, FedEx leadership announced that the company would be splitting FedEx Freight from the parcel side of the company, creating a new, publicly traded company within the next 18 months.

Today, we'll talk about why FedEx is making a separation, what the spin-off means for current customers who use both parcel and freight services from FedEx, and how to save money shipping in 2025.

Why is FedEx separating its parcel and freight arms?

FedEx Freight has increased its operating profit by approximately 25% each year for the past five years while maintaining its leading market share position. So, why make changes if things are going so well?

In its earnings call, FedEx President, Chief Executive Officer, and Director Rajesh Subramaniam said the separation will "unlock significant value for stockholders, while allowing for continued commercial, operational and technological cooperation between both businesses." The benefits include:

• Flexibility to invest in profitable growth for both businesses

• Enhanced focus and competitiveness

• Strong execution of FedEx's strategic priorities

• Unlocking Freight's full potential

Past success indicates FedEx Freight, as the new company will still be called, will become "a leading LTL pure-play, the largest carrier by revenue with the broadest network and the fastest transit times."

What does this spin-off mean for customers who use freight and parcel services?

This split is good news for those who currently use FedEx for more than just its parcel services. Subramaniam says that,"With two separate companies, we will ensure commercial collaboration that creates a seamless transition for our customers, especially those that turn to FedEx for all three services," referring to its commercial, operational, and technology agreements.

Although FedEx leadership acknowledges the risk of customer attrition due to the separation, Subramaniam says, "FedEx Freight has deep relationships with customers who turn to us for our reliability, simplicity and choice of services." Other improvements for Freight customers include an improved LTL pricing and invoicing system, enhanced network efficiencies, and an expanded dedicated LTL sales force. As of this month, FedEx has begun adding to its team of LTL specialists, with plans to add more than 300 by the time the separation is complete.

FedEx is moving forward with the spin-off, designed to maximize value for shareholders while maintaining or improving customer experience.

How can you save money on shipping in 2025?

The new year is a great time to review and renegotiate your existing contracts. With the upcoming separation of FedEx and FedEx Freight, it's even more imperative to reevaluate your shipping expenditures. ShipRx can help you level the playing field, combining benchmarking data with a detailed analysis of your shipping operations to ensure you're equipped to secure the lowest possible rates with FedEx.

Contact the team at ShipRx today for your free savings analysis and find out how we can help you reduce your shipping expenses by 20-30% or more