Competitors weigh in on impending FedEx spinoff

FedEx’s planned spinoff of its LTL unit, FedEx Freight, has captured competitors’ — and Wall Street’s — attention.

Executives at Old Dominion Freight Line, XPO, Saia and ArcBest all fielded questions from analysts during recent Q4 earnings calls about how the move might affect them and the broader LTL market.

Most of the carrier leaders refrained from commenting too much about their largest rival, which is also adding hundreds of salespeople and a new leader. But their answers provided a glimpse of how they’re thinking about the upcoming move, and how it could affect the industry.

Old Dominion expects FedEx to show ‘continued discipline’

Old Dominion Freight Line will be watching for any change in the competitor’s go-to-market strategy, CFO Adam Satterfield said on an earnings call, without specifically mentioning FedEx Freight by name.

“But I think otherwise, as a standalone [company] and [with a] brighter light maybe shining on the business, I would expect to see continued discipline there,” Satterfield said. “I think the opportunity is there for the industry.”

The CFO reminded investors that only half of bankrupt Yellow Corp.’s service centers have been reallocated to other LTL carriers, meaning the industry remains capacity-constrained even as many reopen under other carriers’ logos.

“The old saying about taking two inches off a blanket, and sewing it on the other end of the blanket — it doesn’t give you a longer blanket,” Satterfield said.

President and CEO Marty Freeman said Old Dominion’s sales workforce turnover is less than 1% per year, with most of that coming from retirements or promotions.

“We treat them fair and pay them well,” he said. “The least of my concerns is losing our sale…