Trucking Companies NAICS 484110, 484121, 484122, 484210, 484220, 484230

Jun 9, 2026 - The New FedEx Freight Plans Expansion Beyond Industrial Customers

• Following its spin-off from FedEx in June 2026, FedEx Freight is positioning itself for growth by expanding beyond its traditional industrial less-than-truckload (LTL) freight base. As the largest US LTL carrier, with $8.8 billion in 2025 revenue and a 17% market share, the new company is targeting higher-growth sectors such as grocery, healthcare, energy, and data centers, which it estimates represent a $9 billion opportunity. The strategy reflects broader trends across the trucking sector, where weak industrial demand and shifting freight patterns driven by e-commerce are pushing carriers to diversify revenue streams. Competitors including Old Dominion, Estes, and XPO are pursuing similar initiatives through grocery, flatbed, small-business, and premium service offerings. While overall LTL revenue and shipment volumes declined in 2025, recent increases in freight volumes and pricing suggest market conditions may be improving, creating opportunities for carriers that can capture new freight segments and expand market share.
• Rising diesel prices are prompting many US truck drivers to slow down in an effort to save fuel, according to transportation analytics firm INRIX. Commercial trucks were traveling about 4% slower in late April than at the start of 2026, while average trip lengths also declined slightly. With diesel prices up 44% since late February, owner-operators - who often pay fuel costs themselves and cannot always pass them on to customers - are especially motivated to improve fuel efficiency. Drivers report reducing cruising speeds by a few miles per hour, which can save hundreds of dollars a week, though it may also mean longer working hours for those paid by the mile. Many truckers are also using other fuel-saving practices, such as gentle acceleration, cruise control, and limiting air-conditioning use. However, not all drivers are slowing down, as some newer trucks achieve optimal fuel economy at higher speeds.

• The Iran war has sharply increased fuel costs and volatility for the trucking industry, where diesel is one of the largest operating expenses. According to the Financial Times, US diesel prices recently climbed to about $5.66 per gallon, helping drive wholesale inflation to 6%, the highest level since 2022. Industry analysts say diesel has risen roughly 35-41% since the conflict escalated, fueled by disruptions around the Strait of Hormuz, through which about 20% of global oil normally flows. For trucking companies, every 50-cent rise in diesel can add roughly $0.08–$0.10 per mile in operating costs, squeezing already thin margins for small fleets and independent owner-operators. Larger carriers are offsetting some of the impact through fuel surcharges and route optimization, but higher freight costs are increasingly flowing through to retailers, food suppliers, and consumers across the broader economy.
• Small and midsize businesses (SMBs) are abandoning a “wait-and-see” approach and actively overhauling supply chains as tariff uncertainty continues, according to a Netstock survey. About 97% of SMBs are now using at least one mitigation strategy, with 35% having changed suppliers and nearly half sourcing from multiple regions to reduce risk - though 74% still cite China as most impacted. At the same time, nearly three-quarters have extended inventory planning horizons to manage cost swings and delays. Pricing pressure is also mounting, with 82% of firms raising prices after exhausting their ability to absorb costs. To cope, companies are rapidly increasing use of analytics and AI tools. These shifts are expected to keep freight markets volatile, with more fragmented shipping networks and potential demand slowdowns as higher prices ripple through the economy.