FedEx Corporation (FDX - Analyst Report) announced that its Freight segment has expanded its service –FedEx Freight Priority – to offer less-than-truckload (LTL) services to and from Canada. The company offers delivery service to Canada through both FedEx Freight Priority and FedEx Freight Economy throughout North America.
FedEx also aims to spread itsservices across the U.S., Canada and Mexico and capitalize on potential business opportunities in NAFTA (North American Free Trade agreement) markets. The company is mounting its Priority next-day services in its FedEx Freight segment by opening a new service centre in Rochester, N.Y. The new service centre will cater to 13 U.S. and Canadian markets dealing in cross-border shipments to and from Toronto and Montreal.It expects the opening of its shipment facility in Ohio to primarily facilitate its Canadian shipping network with enhanced service in areas like Ontario, Ottawa and Quebec. Further, FedEx’s Vancouver facility will cater to coast-to-coast LTL and ocean shipment for services like FedEx International Direct Priority Ocean freight forwarding.
Further, in Mexico, the company added two new service centers – one each in Culiacán and Silao. These centers will strengthen its freight network in northwestern and north central part of Mexico. On Apr 11, the company through its Trade Networks unit announced expansion service capabilities in Latin America through various strategic operational developments such as the opening of new offices in Brazil and Mexico.
The company also formed strategic alliances with Portlink Logística Multimodal Ltd., one of the largest freight forwarders in southern Brazil to intensify its reach in the Brazilian market. Overall, through its Trade Networks division, FedEx remains successful in establishing relationships and extending capabilities to 19 countries across Latin America. These initiatives enable the company to strengthen its international business and provide opportunities to offset lower demand trends in its domestic market.
FedEx, which operates with freight forwarding carriers like United Parcel Service, Inc. (UPS - Analyst Report), Radiant Logistics, Inc. (RLGT - Snapshot Report) and Expeditors International of Washington Inc. (EXPD - Analyst Report) has a Zacks Rank #3 (Hold).