FedEx Freight’s Logue to Retire; Knight to Relinquish CEO Post
This story appears in the Nov. 10 print edition of Transport Topics.
Two well-known trucking CEOs announced that they will step aside at the end of 2014.
FedEx Freight said CEO William Logue, who led the unit back to historic profitability levels, will retire for health reasons Dec. 31. Also last week, Knight Transportation Inc. said Kevin Knight, its first CEO, will step aside after 21 years of building the truckload company into one of the most efficient and diversified fleets in the sector.
The announcement from FedEx Corp. said Michael Ducker, chief operating officer at FedEx Express, will replace Logue, 57, at the largest less-than-truckload carrier. At Knight, President David Jackson will become CEO, also on Jan. 1.
“Bill Logue has led FedEx Freight to significant growth, success and a leading position in the LTL industry,” Frederick Smith, FedEx Corp. CEO, said in a statement. “He navigated some of the worst economic conditions the industry has ever seen and delivered outstanding results while positioning FedEx Freight for long-term success.”
Knight will remain as chairman in an active executive role. He has been chairman of the board since 1999. Jackson, who has been president for nearly four years, also is becoming a member of Knight’s board. Knight ranks No. 31 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
“Dave Jackson is the right person at the right time for the first CEO transition in our company’s history,” Kevin Knight said. “This move has been long-planned and marks the culmination of a multi-year development program.”
Logue worked nearly five years at the largest less-than-truckload carrier. In FedEx’s most recent fiscal quarter ended Aug. 31, the unit produced profit of $168 million, and revenue rose 46% to $1.51
billion. By comparison, FedEx Freight lost $107 million from operations in the first full quarter after Logue took charge.
He engineered an overhaul to create two levels of service — priority and economy. At the same time, the terminal network was streamlined into a single LTL network.
Until the recession, FedEx Freight’s operating ratios typically were 90 or below. In the first quarter of its current fiscal year, that ratio improved to 89.6, marking the first time in seven years it was below 90.
Knight currently is the carrier with the lowest operating ratio of any publicly traded fleet, standing at 80.2 for trucking service. The Phoenix-based company, founded in 1990, has been built into a diversified business that includes intermodal, refrigerated, brokerage and other services.
Its revenue is on track after three quarters to reach the $1 billion annual revenue pace, mostly through organic growth, with help from the recent acquisition of Barr-Nunn Transportation.
Knight’s outgoing CEO will focus on growth, capital allocation and leadership development, the Nov. 5 statement said.
Jackson “worked his way up from procurement, to managing our independent contractors, to chief financial officer, to president over a nearly 15-year period,” the outgoing CEO added in a statement.
Meanwhile, Ducker’s background at FedEx Express includes a focus on international services.
He has the additional title of president of the International division, the package and freight unit of FedEx, which ranks No. 2 on the TT100 for-hire list.
“While we are sorry to see Bill retire, he has our gratitude, support and best wishes,” Smith said.
