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Transportation Real Estate Sector Takes FedEx Hit

LAKELAND, FL-FedEx's decision to merge its freight units means 100 cross-dock facilities will flood the already suffering transportation real estate market.

By Jennifer LeClaire | Updated on September 16, 2010

LAKELAND, FL-In a move that will see 100 truck terminal properties across the US shuttered, FedEx is merging its FedEx Freight and FedEx National LTL networks. FedEx will cmbine the operations by Jan. 30, 2011. About 1,700 workers will be terminated.

Memphis-based FedEx made the announcement in its fiscal first quarter earnings report on Thursday. The FedEx Freight business reported an operating loss of $16 million on revenue of $1.26 billion. Last year, revenue was $982 million, but the company had an operating income of $2 million. The LTL business posted operating losses in the quarter, driven by lower yields and higher volume-related costs. Yields declined 3% year-over-year.

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