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A Look at FedEx Corporation (NYSE:FDX) Less-Than-Truckload (LTL) Freight Division.


Fed-ex Freight Corporation (NYSE:FDX) freight division includes priority services when speed is critical and economy services. Fed-ex Freight Division Less-Than-Truckload (LTL) revenues increased 10% in the second quarter and 8% in the first half of 2018.  Mainly due to higher LTL revenue per shipment and average daily LTL shipments. LTL revenue per shipment increased 7% in the second quarter and 6% in the first half of 2018 primarily due to higher base rates driven by our ongoing yield management initiatives and higher fuel surcharges. Using HADE graphs we can plot Fed-ex Freight's average daily LTL shipments and LTL revenue. 


Average daily LTL shipments increased 4% in the second quarter and 3% in the first half of 2018 due to higher demand for LTL service offerings. Effective January 1, 2018, FedEx Freight implemented a 4.9% general freight rate increase. 


A Look At FedEx Freight Operating Income

FedEx Freight operating income increased 34% in the second quarter and 32% in the first half of 2018 primarily driven by higher LTL revenue per shipment.


 

Purchased Transportation increased 8% in the second quarter and 4% in the first half of 2018 due to higher volumes and increased rates, which were partially offset by the movement of certain services within FedEx Custom Critical to the FedEx Ground segment.

Fuel expense increased 22% in the second quarter and 14% in the first half of 2018 due to higher fuel prices. The net impact of fuel had a slight benefit to operating income in the second quarter and first half of 2018 as higher fuel surcharges more than offset increased fuel prices.




Of Note:

During the first half of 2018, Fed-ex repurchased 1.2 million shares of FDX stock at an average price of $216.45 per share for a total of $270 million. 


FedEx Corporation (FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. The company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. FedEx Corporation operates through the following segments: FedEx Express, TNT Express, FedEx Ground and FedEx Freight