Customer Disservice: FedEx Axes 1,400 LTL Shipping Customers Due to “Lack of Truck Capacity”

FedEx Needs the LaneAxis Network

Through the years, FedEx has had many catchy slogans. Here are a few of our favorites:

· Where now meets next.

· We Understand.

· Relax, it’s FedEx.

· Be Absolutely Sure.

· The Way the World Works.

That last one is almost certainly the most truthful.

Certainly it must be to the 1,400+ shipping customers FedEx cut service to (“pruned”) last week. It wasn’t just the announcement that caught shippers off guard. It was the timing. FedEx gave those 1,400 customers less than ONE BUSINESS DAY NOTICE — HEADING INTO THE WEEKEND — that their Monday packages would not be picked up. The target of this head-shaking business decision: LTL (Less Than Truckload) shippers. LTL shippers are those who don’t require an entire trailer to move their goods — just a portion of it.

As reported by Freightwaves: “The heavy trucking division of FedEx Corp. began notifying select manufacturers, retailers and logistics companies on Friday (June 11) that it will stop picking up their goods as of Monday, leaving them virtually no time to make alternative shipping arrangements.”

FedEx carefully crafted its unbelievably disruptive announcement to LTL shippers:

“Starting June 14, 2021, and until further notice, FedEx Freight will begin implementing customer specific actions to control capacity and avoid backlogs in the most capacity constrained freight service centers.”

FedEx Needs the LaneAxis Direct Network.

To many, the above statement is an opinion.

To us, it’s a fact.

We can’t say it enough: Every year U.S. truckers drive 20+ billion empty miles on American highways. The capacity is there. Unfortunately, the Direct Network is not — until now.

We at LaneAxis are often asked how we would compete with the likes of FedEx and UPS. Our answer — perfectly illustrated in this story — is that we don’t view FedEx and UPS as competitors, we view them as potential customers.

LaneAxis is built for shippers to find capacity — and carriers to find freight — when and where they need it. UPS and FedEx could, should, and based on our upcoming efforts, will utilize the LaneAxis Network to “offload” that excess freight to hungry carriers and keep their loyal shipping customers happy.

The trucks are out there. The capacity is out there. Yes, there has been much chatter of the “driver shortage” in trucking. But many believe the problem is a driver retention problem more than a true driver shortage. Driver turnover routinely exceeds 90% per year! We talk to independent truckers every day who are starving for freight and are fed up with the chaotic tendencies of the industry.

And that very much includes the LTL sector.

Blockchain and AI: More Than Buzzwords

LaneAxis will use data culled from shipment documents stored on the blockchain (such as Bill of Lading/Load Manifest) to identify available spare capacity on the freight lanes shippers need their goods moved. AI will crunch the stored data, as well as real-time location data, and alert matching parties to the available capacity. And this is just a sliver of what the LaneAxis Network — powered by blockchain and AI — will be able to accomplish.

As one of the affected shippers in the FedEx “pruning” stated: “Shipper memories are like elephant memories. People don’t forget. You’re setting yourself up for future angst. All it takes is a seven-day notice, not a 24-hour notice.”

That is good news for LaneAxis, and frankly, good news for shipping giants like FedEx — who clearly can benefit from the LaneAxis solution.

Terms like “blockchain” and “smart contracts” have become high-profile buzzwords in the tech world. But LaneAxis isn’t focused on the hype — we’re focused on unleashing the true power of blockchain and AI to benefit shippers, carriers, and ultimately, consumers.

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