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FedEx Freight’s Smith Sees More RNG Tractors Ahead
Top Executive at Largest LTL Carrier Open to Any Powertrain That Boosts Bottom Line
Key Takeaways:
- FedEx Freight incoming CEO John Smith said LTL fleets will raise investment in renewable natural gas tractors over the next two to four years.
- It matters because FedEx Freight operates 365 locations, 26,000 service center doors and 30,000 vehicles ahead of its June 1 spinoff.
- Smith said FedEx Freight will scale EV, CNG or hydrogen technologies once they handle Class 8 tractor utilization demands.
LAS VEGAS — Less-than-truckload fleets nationwide are set to increase their investment in tractors with internal combustion engines fueled with renewable natural gas in the next two to four years, according to incoming FedEx Freight CEO John Smith.
Battery-electric tractors and hydrogen-powered engines will also have a role in the segment, the top executive at the largest LTL carrier in North America told the 2026 Advanced Clean Transportation Expo.
“There is no question, as an industry, we definitely need to upgrade the roster. Cleaner trucks give us fresh legs on the field, helping us outrun inefficiencies, and it creates sustainable fleets. But we aren’t waiting for a silver bullet that may or may not come or arrive in a decade,” Smith said.
In a keynote speech heavy on football metaphors, Smith told ACT Expo attendees that every efficiency improvement, clean mile and route optimization helps move the entire industry closer to a winning position. “It’s about advancing the ball with purpose,” he quipped.
Currently, FedEx Freight — which will be spun off from parent company FedEx Corp. on June 1 — has 365 locations, around 26,000 service center doors and about 30,000 vehicles, including 17,000 trailers.
FedEx Corp. ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
Since 2023, FedEx Freight has eliminated 39 service centers and around 1,000 terminal doors while adding nine locations and 600 doors in the densest freight locations to optimize its network ahead of launching as a stand-alone entity.
The carrier has built a dedicated LTL sales force of more than 500 employees in advance of the spinoff.
That precedes plans to improve the carrier’s market share among four segments of the LTL market as a stand-alone entity, according to top executives.
The carrier 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 FedEx Freight’s first investor day April 8.
Mark Hill of PCS Software joins us to discuss logistics as TT releases the Top 100 list of the largest logistics companies in North America. Tune in above or by going to RoadSigns.ttnews.com.
Smith told ACT Expo attendees the investments had a purpose, which the carrier was also applying to sustainability.
“I want to start with a hard truth that often gets lost in the excitement of going green. Sustainability is only sustainable if it makes business sense. You can only make a difference if you stay in business,” Smith said.
FedEx Freight is using engines powered by renewable natural gas to cut its carbon intensity using proven engine platforms, said the executive, noting: “It is a ready-now solution that fits the rigors of our duty cycles.”
Battery-electric trucks need routes where the range is predictable and charging is consistent, Smith said, adding that the carrier is investing more in service center applications, such as battery-electric forklifts and yard dogs.
RELATED: FedEx Freight Adds AI Tools to Boost Win Percentage
Further in the future, hydrogen may come into the picture, he said, whether that is a hydrogen fuel cell or next-generation hybrid tractor.
“We’re committed to scaling these technologies the moment they prove they can handle the high utilization demands of a Class 8 tractor,” he said.
Terrain is a key variable carriers must consider when assessing what type of powertrain beyond diesel to utilize, according to a report released in March by the North American Council for Freight Efficiency.
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“Whenever the new technology may be, or whatever that may be, it needs to fit seamlessly into our day-to-day operations. Put it simply, from a fleet operator’s perspective, we need these new technologies to be just another truck, another tool that easily fits in our network. And we’re open to any technology that allows us to run our business in a way that’s better for the environment, whether that’s an EV, CNG or something that hasn’t been invented yet,” Smith said.
FedEx Freight is also making operational and network improvements to drive fuel efficiency, implementing aerodynamic upgrades and low-rolling resistance tires, and using artificial intelligence to optimize routes and dynamic scheduling. In addition, the carrier is shifting to dimension-based trailer loading rather than weight-based planning.
“The LTL industry is undergoing its most significant transformation in decades. Technology, sustainability, customer demands and cost pressures are all shifting at once. And freight networks are complex, capital-intensive systems, and adapting them requires precision, discipline and a long-term view. They will not and they don’t turn on a dime,” Smith said, while thanking technology pioneers in attendance at the conference.
