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FedEx Freight prunes 1,400 customers to protect service levels

Shippers given short notice as busiest terminals struggle to handle rising shipment volumes

FedEx Freight is immediately cutting service to about 1,400 less-than-truckload customers, affecting thousands of locations, in an effort to reduce terminal bottlenecks and shipping delays as unprecedented amounts of tonnage pour into the sector. 

The heavy trucking division of FedEx Corp. (NYSE: FDX) began notifying select manufacturers, retailers and logistics companies on Friday that it will stop picking up their goods as of Monday, leaving them virtually no time to make alternative shipping arrangements. Other LTL carriers are also operating at maximum capacity and may not be able to absorb more freight in the near-term.

“Starting June 14, 2021, and until further notice, FedEx Freight will begin implementing customer specific actions to control capacity and avoid backlogs in the most capacity constrained freight service centers,” the company told Trividia Health, a medical device manufacture in Fort Lauderdale, Florida, in a suspension notice that was obtained by FreightWaves.

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