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XPO's Jacobs maps new route for Con-way

October 12, 2015


Bradley S. Jacobs, Chairman and CEO of XPO Logistics, is beginning to map a new route for Con-way after its acquisition by XPO which is expected later this month. Con-way Freight will look more like FedEx Freight, its largest competitor, offering both premium or priority and economy services.

During a keynote address at the JOC Inland Distribution Conference, Jacobs said the company would be reconfigured to handle both next-day and two-day service and an economy service. According to transportation investment analyst John G. Larkin of Stifel, an economy-style service would greatly extend the carrier’s reach into the $35 billion LTL market. 

The launch of an economy-style service will require some reconfiguration of the company’s LTL terminal network. However, it will not have to face what FedEx Freight did in 2011 when it made big structural changes to integrate two separate LTL subsidiary networks, costing the company more than $140 million.

The Con-way name will be retired after 32 years, and all of the company’s subsidiaries, which also include Menlo Logistics and Con-way Truckload, will be rebranded as XPO Logistics.

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