FedEx Freight President Lance Moll will be retiring on January 31 as the nation’s largest less-than-truckload (LTL) carrier prepares for a spinoff from the parcel giant. This announcement was made by the company on Friday. Moll, who has served FedEx for 33 years, will transition into an executive advisor role until July 31.

The decision for Moll to retire was made as part of the company’s plan to ensure a focused and seamless transition during the separation process. CEO Raj Subramaniam had previously stated that Moll would lead FedEx Freight through the separation, but now John Smith, the COO of U.S. and Canada surface operations for FedEx Freight and FedEx Ground, will take over the leadership of the LTL carrier until a new CEO is appointed. Smith has prior experience leading both FedEx Freight and FedEx Ground as the CEO of each unit.

Smith expressed his gratitude for Moll’s leadership and contributions to FedEx Freight, highlighting Moll’s expertise in the industry and his commitment to safety, communication, and innovation – key factors that have driven the success of the company in recent years. Moll’s retirement follows a period of reduced spending at the LTL carrier in anticipation of the spinoff announcement. The upcoming spinoff is expected to have significant impacts on the industry, given the scale of FedEx and FedEx Freight.

Smith will collaborate closely with FedEx’s Separation Management Office to oversee the separation of Freight. The retirement of Moll raises questions about who will be selected to lead the carrier as a standalone company post-spinoff, if not Moll or Smith. The company aims to announce a permanent leader within the next one to two years, with the spinoff scheduled to be completed within 18 months.

Industry consultant Satish Jindel, a veteran of FedEx, anticipates further changes within the company leading up to the spinoff. It is expected that additional developments may occur before the separation is finalized.

In conclusion, Lance Moll’s retirement marks a significant transition for FedEx Freight as it prepares for its spinoff from the larger FedEx corporation. The appointment of John Smith as the interim leader underscores the company’s commitment to a smooth separation process. The industry will be closely watching for updates on the selection of a permanent CEO for the spun-off FedEx Freight and how this move will impact the broader transportation sector.