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FedEx Freight Adds AI Tools to Boost Win Percentage
Predictive Analytics Help Carrier Assess Demand, Terminal Congestion, Weather and Traffic
Key Takeaways:
- FedEx Freight is expanding AI use to improve route optimization, reduce downtime and improve customer satisfaction, executive John Smith said May 4.
- Smith said predictive analytics can improve demand forecasting, dock labor planning, linehaul schedules and trailer allocation across the carrier’s 365 locations.
- FedEx Freight is preparing for a June 1 spinoff while targeting growth among small- to medium-size business, grocery, healthcare, data center and energy customers.
LAS VEGAS — FedEx Freight is significantly ramping up use of artificial intelligence tools to boost the carrier’s route optimization, decrease downtime and improve customer satisfaction, top executive John Smith said.
“AI is transforming freight, shifting it from historical reporting to real-time visibility. It allows you to be like a quarterback who can anticipate now almost every blitz,” Smith, who will be CEO of the FedEx Corp. division when it is spun off June 1, told attendees of the 2026 Advanced Clean Transportation Expo on May 4.
FedEx Freight — the largest player in the less-than-truckload segment of the freight market — has 365 locations, around 26,000 service center doors and about 30,000 vehicles.
The carrier has built a dedicated LTL sales force of more than 500 employees in advance of the spinoff, but that won’t be enough on its own to meet the Memphis, Tenn.-based company’s ambitions in the space.
A Smith-led FedEx Freight expects to increase its market share among small- to medium-size business, grocery, healthcare, and data centers and energy customers, said Mike Lyons, chief specialized services and commercial officer, during the company’s first investor day April 8.
To achieve those ambitions, the carrier is deploying all available AI tools.
“Data, predictive analytics and AI-driven logistics are reshaping how we manage capacity and deliver more reliable service to our customers,” Smith said.
RELATED: FedEx Freight’s Smith Sees More RNG Tractors Ahead
This includes more accurate demand forecasting through the use of predictive analytics to assess historical shipment patterns, seasonality, economic indicators and real-time booking trends to anticipate volumes.
“Now, this helps us plan dock labor, linehaul schedules and trailer allocations with greater precision. And AI models can evaluate lane level, demand, as well as terminal congestion, weather and traffic to recommend optimal linehaul schedules,” Smith said, noting that such tools reduced empty miles and helped balance freight across its network.
The carrier is also working with original equipment manufacturers to identify fault codes to address potential breakdown issues before any failure as well as tracking mileage levels on rolling stock to service equipment based on usage data rather than typical time-based preventive maintenance.
“At a high level, having the right data and technology plays a big role in our ability to quickly pivot and use our assets in different ways,” he said. “Better data enables faster pivots in equipment allocation, routing, as well as purchasing. It helps to match fleet specs to customer needs, whether it’s something like e-commerce, smaller equipment or even electric pallet jacks.”
