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UPS Freight sold to Canada’s TFI for $800 million
William B. Cassidy, Senior Editor | Jan 25, 2021 1:14PM EST
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UPS Freight will be rebranded TForce Freight and operate independently within TFI’s subsidiary network. Photo credit: Sundry Photography/Shutterstock.com.
UPS is selling UPS Freight to TFI International, Canada’s largest trucking provider, in a step that will reshape the North American less-than-truckload (LTL) market. TFI, which offers LTL, truckload, and courier services in Canada, will now own the sixth-largest US LTL trucking company.
The $800 million sale comes with a five-year service agreement that will ensure UPS Freight will continue to use UPS’s network to fulfill package shipments, UPS said in a statement Monday. That will avoid disruption for shippers that use bundled UPS package and freight services.
As it takes on what will be its largest subsidiary in the United States, TFI is expected to try to make its new LTL subsidiary more profitable and more competitive, which could put more pressure on already-climbing LTL rates in 2021. The deal is expected to close in the second quarter.
Satish Jindel, president of transportation research firm SJ Consulting Group, said the sale would be beneficial for both UPS and good the US LTL market as a whole.
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