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Con-way Freight

Con-way Freight was an American less-than-truckload (LTL) freight carrier headquartered in , that provided regional and national shipping services across the , specializing in the consolidation and distribution of smaller freight loads. Founded in 1983 as a from to focus on shorter-haul LTL operations under 500 miles, the company initially operated through four regional carriers—Con-way Central, Southern, , and —which were merged into a unified national network by 2007. By 1989, it had grown to 232 service centers and approximately 5,700 employees, handling 25 million pounds of freight daily, and achieved significant profitability through innovative practices like profit-sharing and efficient network design. As part of Con-way Inc., which traced its broader heritage to 1929 through predecessor companies, Con-way Freight expanded to over 300 service centers, more than 17,000 employees dedicated to LTL operations, and generated about $3.3 billion in annual revenue by 2012, securing a 9.4% as the second-largest LTL provider in . It offered services including guaranteed delivery options and coverage to , , and , supported by a fleet of over 33,500 tractors and trailers. In September 2015, XPO Logistics announced its acquisition of Con-way Inc. for $3 billion, a deal completed on October 30, 2015, which integrated Con-way Freight into XPO's broader platform and rebranded its operations under the XPO name. The LTL operations continued under XPO, which retained them after spinning off other segments like brokerage to RXO in 2022, as of 2025. Prior to the acquisition, Con-way Inc. as a whole reported $5.8 billion in revenue for 2014 and employed around 30,000 people across 582 locations in 18 countries, with Con-way Freight forming the cornerstone of its asset-based transportation segment. The merger significantly expanded XPO's LTL capabilities, combining networks to create one of the largest integrated providers in the industry.

History

Founding and Early Development

Con-way Freight was founded in May 1983 by (CF) as a non-union less-than-truckload (LTL) carrier, aimed at countering competitive pressures in the deregulated trucking industry following the , which allowed non-union entrants to undercut unionized carriers like CF on costs and flexibility. This initiative addressed CF's challenges with high labor costs from union contracts and work rules that hindered adaptation to the growing regional LTL market, where shorter hauls under 500 miles proved most profitable. The company launched with Con-way Western Express in May 1983, operating 11 service centers across three western states—, , and —and employing 120 people initially. One month later, on June 20, 1983, Con-way Central Express followed, establishing 11 locations in seven Midwest states, including , , , , , , and , with service to over 1,000 points. Starting with 230 employees and a fleet of 334 trucks, tractors, and trailers, the operations handled just 113 shipments on the first day but emphasized a service-first approach, prioritizing on-time delivery over full loads to differentiate from rigid unionized competitors. The initial focus remained on regional LTL services to sidestep the issues that burdened 's national operations, enabling Con-way to offer lower rates and faster service without overlapping routes that could invite labor disputes. This was later expanded with the addition of Eastern Express in 1986 and Con-way Southern Express in 1987. Over the first decade, Con-way experienced rapid growth, expanding to more than 300 locations across 32 states, employing 7,600 people, and generating $800 million in annual revenue by 1993, solidifying its role as a core division within the Con-way regional structure under . In 1996, the Con-way operations were spun off from to form the independent CNF Inc.

Expansion and Reorganization

During the 1990s, Freight expanded through strategic acquisitions and internal growth of its regional carriers, including Western Express, Central Express, Southern Express, and Eastern Express, which collectively formed the foundation for a national less-than-truckload (LTL) network. For instance, Southern Express acquired McMinnville and Hohenwald Truck Lines in 1990, gaining intrastate authority in and expanding its terminal network from 15 to 40 locations by the end of the decade. In , Southern Express merged with Southwest Express, creating a unified southern operation with 101 terminals across 13 states and enhancing coast-to-coast service capabilities for regional shippers. By 1993, these regional entities had grown to more than 300 operating locations in 32 states, supported by a fleet exceeding 11,000 trucks and trailers. The push toward national unification accelerated in the mid-2000s, culminating in a major reorganization in when Con-way Freight consolidated its three primary regional operating companies—Con-way Western Express, Con-way Central Express, and Con-way Southern Express—into a single national LTL brand, eliminating separate regional identities and standardizing operations under the Con-way Freight logo and colors. This restructuring, which incurred costs of $12 million to $16 million, streamlined management, improved network efficiency, and positioned the company for broader across . Con-way Eastern Express had been integrated earlier, contributing to the overall shift from fragmented regional models to a cohesive national operation. By the mid-2000s, this expansion had resulted in a network of 343 freight service centers, with 150 owned and 193 leased, providing extensive regional LTL coverage. Employee numbers for the Con-way segment reached approximately 18,000 full-time workers by 2005, reflecting robust growth in operational capacity. The unified structure supported further scaling, with headquarters established in , where Con-way Central Express had originally been based since its founding. Key financial milestones underscored the success of this expansion phase. In 2011, Con-way Freight achieved of $3.247 billion and operating income of $119.779 million, driven by increased freight volumes and operational efficiencies from the consolidated network. By that year, the workforce had grown to approximately 16,600 employees, enabling the company to handle expanded national LTL services effectively.

Operations

Service Offerings and Customer Base

Con-way Freight specialized in less-than-truckload (LTL) shipping, providing transportation services for shipments averaging approximately 1,334 pounds as of 2013 across . This business model focused on consolidating smaller freight loads from multiple shippers to optimize efficiency, serving a diverse range of industries including , , , high-tech, healthcare, and sectors. By 2013, the company maintained a customer base of more than 350,000 accounts, with a particular emphasis on mid-market shippers seeking reliable, cost-effective solutions rather than solely ultra-large enterprises. Key service offerings included day-definite delivery options such as next-day, two-day, three-day, and four-day transit times, supported by guaranteed on-time delivery programs that were among the first free offerings in the LTL industry. Expedited shipping was available for time-sensitive needs, alongside integrations that combined truckload with intermodal options for broader flexibility. The company also handled temperature-controlled freight, though certain restrictions applied to guarantees for such shipments. These services catered to daily volumes of around 59,000 shipments totaling over 78 million pounds, prioritizing speed and consistency with more than 80% of volume in next- or second-day lanes. A core stemmed from Freight's non-union workforce, which enabled operational flexibility, responsive pricing adjustments, and high service reliability without the constraints of agreements. This structure supported profit-sharing incentives and a service-first mentality, allowing drivers to build direct relationships with customers and adapt to varying freight demands. Overall, these elements positioned Con-way Freight as a leader in serving mid-market needs within the fragmented LTL market.

Network Infrastructure and Fleet

Con-way Freight maintained an extensive network of 297 freight service centers across North America as of December 31, 2014, comprising 146 owned facilities and 151 leased locations. These service centers formed the backbone of its less-than-truckload (LTL) operations, strategically positioned to support a hub-and-spoke model that facilitated efficient freight consolidation and distribution. The owned centers accounted for approximately 69% of the total door capacity within the network, enabling high-volume handling at key hubs. The company's coverage extended to all 48 states, , , , as well as and , providing regional, inter-regional, and transcontinental LTL services with day-definite delivery commitments. This geographic reach allowed for same-day or next-day delivery in many , optimizing transit times through the integrated service center network and linehaul operations. Con-way Freight's infrastructure emphasized density in high-volume corridors, supporting reliable performance across North American trade lanes. In terms of fleet, Con-way Freight operated 9,500 tractors and 25,500 trailers, including those under capital leases, as of the end of 2014. The fleet was supported by advanced routing and tracking systems, including proprietary for shipment visibility and online tools for real-time updates, which enhanced operational efficiency and customer service. Annual capital investments, such as the 2015 acquisition of 875 new Freightliner tractors, focused on fleet modernization to maintain reliability and fuel efficiency. Operationally, the network handled nearly 59,000 shipments daily in 2013, translating to over 21 million shipments annually, with an average shipment weight of about 1,350 pounds and a strong emphasis on minimizing times through optimized and . This scale underscored Con-way Freight's capacity to manage substantial freight volumes while prioritizing service reliability across its infrastructure. Following the 2015 acquisition by XPO Logistics, these operations were integrated and rebranded under XPO, continuing as a major LTL network as of 2025.

Corporate Initiatives

Network Re-Engineering

In 2007, Con-way Freight launched a major initiative to consolidate its three regional operating companies—Con-way Central Express, Con-way Southern Express, and Con-way Western Express—into a single, unified less-than-truckload (LTL) network headquartered in . This effort integrated the previously separate regional systems into one seamless national operation, maintaining full geographic coverage across the and without any reduction in service areas. The consolidation aimed to eliminate redundancies and create a more cohesive structure for handling freight shipments, building on the company's existing network of over 300 service centers. Key changes under this initiative included the adoption of centralized management and uniform processes, which standardized technology platforms across the network and enabled optimized routing strategies. These modifications focused on improving by streamlining dispatch and shipment handling, reducing complexity in pricing and procedures, and leveraging best practices from each former regional unit. The re-engineering also incorporated advanced to evaluate and refine operational areas, ensuring smoother integration without disrupting daily freight movements. Reorganization costs for this phase were estimated at $12 million to $16 million, primarily incurred in late 2007 and the first quarter of 2008. The implementation unfolded in a phased rollout from 2007 through 2009, beginning with the structural unification in 2007 and extending into a broader network optimization in 2008, which involved closing 40 underutilized service centers and redistributing volumes to more than 100 adjacent facilities. This period included significant IT upgrades to support the centralized systems, with plans for a $160 million investment in technology infrastructure starting in 2010 to further enhance data integration and operational tools. Employee training programs were conducted to align staff with the new unified processes, ensuring a smooth transition across the workforce. By November 2008, the core re-engineering was completed, marking the full operational shift to the national network model. The outcomes of this network re-engineering significantly enhanced service reliability, with reductions in service exceptions and improvements in on-time delivery rates. Operating costs were lowered through greater efficiency, yielding $122 million in savings during alone, including $41 million from salary and wage adjustments, and positioning the company for sustained amid competitive LTL markets. Transit times were also shortened in key due to optimized and higher density, contributing to better overall and for shippers. These changes solidified Con-way Freight's competitive edge without compromising its extensive coverage.

Technological and Operational Innovations

In the late and early , Con-way Freight advanced its digital capabilities by implementing online platforms for customer interactions, including instant rate quoting and booking features. Building on the foundational network re-engineering of 2007, the company launched MyCon-way.com in , a portal that provided predictive search tools and streamlined menus for shipping, tracking, and rating shipments in . This system enhanced accessibility for less-than-truckload (LTL) customers, allowing for quicker and integration with broader data exchanges. By the 2010s, Con-way Freight integrated advanced tracking and management technologies to improve operational visibility and accuracy. The company adopted GPS-enabled systems for real-time shipment monitoring, alongside (EDI) capabilities that facilitated seamless data sharing with customer () systems. These tools, combined with warehouse management systems, reduced manual errors and supported end-to-end transparency across its network. Complementing these efforts, Con-way emphasized operational innovations through comprehensive driver training programs. Starting in the early , its specialized schools delivered 80 hours of classroom instruction and 160 hours of supervised on-road training, focusing on safety protocols and fuel-efficient driving techniques, such as peer-based coaching with in-cab feedback devices like Vnomics. These initiatives contributed to industry-leading performance, with on-time delivery rates exceeding 98% across its operations. Sustainability became a key focus for Con-way Freight's operational enhancements beginning in the late , with investments aimed at reducing consumption and emissions. In 2006, the company joined the EPA's SmartWay Transport Partnership to promote fuel-saving practices. By 2014, Con-way expanded these efforts by equipping trailers with Wabash DuraPlate AeroSkirts to minimize wind drag, while exploring alternative fuels through a measured adoption strategy that included (CNG) conversions in select operations, such as the area in 2012. These measures not only lowered operational costs but also aligned with broader environmental goals, such as cutting carbon emissions through optimized fleet practices.

Acquisition and Legacy

Acquisition by XPO Logistics

On September 9, 2015, XPO Logistics, Inc. announced a definitive agreement to acquire , a major transportation and logistics company with as its core less-than-truckload (LTL) division, in an all-cash transaction valued at approximately $3 billion. The deal represented a premium of about 26% over Con-way's closing stock price prior to the announcement. The acquisition was structured as a for all outstanding shares of Con-way at $47.60 per share in , followed by a second-step merger in which Con-way would become a wholly owned of XPO. The tender offer commenced shortly after the announcement, and by , , approximately 81.1% of Con-way's shares had been tendered. The offer was extended briefly to satisfy antitrust conditions but expired at 12:01 a.m. New York City time on October 30, , after which XPO accepted all validly tendered shares. The merger was completed on the same day under Section 251(h) of the , eliminating the need for a separate vote since the tender offer threshold was met. Con-way's shares ceased trading on the following the closure. The strategic rationale centered on XPO's ambition to solidify its position in the LTL market by integrating Con-way Freight's established network and operations. Upon completion, the combined entity was projected to generate approximately $15 billion in annual revenue, positioning XPO as the second-largest LTL provider in behind . This move also enhanced XPO's capabilities in global contract logistics, managed transportation, and other freight services through Con-way's complementary assets. The acquisition was financed through a $1.6 billion and a $1.0 billion asset-based facility. Regulatory approvals were obtained from the U.S. Department of Justice and other relevant authorities, with the antitrust review process prompting the brief extension of the period. Both companies' boards of directors had unanimously approved the merger agreement at the outset, and no significant opposition delayed the process.

Integration and Current Status

Following the acquisition of Con-way Inc. in October 2015, XPO Logistics initiated a comprehensive integration process that culminated in the of Freight to XPO Freight by May 2017. This effort encompassed nearly 300 facilities, approximately 8,000 tractors, and over 25,000 trailers, marking the full retirement of the brand and the unification of operations under XPO's global structure. The ran parallel to cultural and organizational evolution, integrating Con-way's systems with XPO's technology platforms to streamline less-than-truckload (LTL) services across . Key operational changes during integration included the closure of redundant terminals to enhance efficiency, such as the shutdown of seven remote service centers in early 2016 without exiting any markets. These actions contributed to network synergies, incorporating over 300 locations into XPO's LTL division and expanding its footprint to more than 500 terminals overall. The mergers also eliminated approximately 190 non-sales positions to align with a more streamlined organizational model. As of 2025, the former Con-way Freight operations function as XPO's core North American LTL segment, ranking as one of the industry's largest providers with annual revenue exceeding $5 billion based on quarterly figures of approximately $1.17 billion in , $1.24 billion in Q2, and $1.26 billion in Q3. This segment holds about 9% of the U.S. LTL , estimated at $52 billion in recent years, positioning XPO as a top competitor behind leaders like . The legacy of Con-way's non-union workforce model continues to influence XPO's LTL operations, maintaining a non-unionized structure that supports flexibility in a competitive landscape. The integration has had a lasting impact, elevating XPO's U.S. LTL from minimal pre-acquisition levels to around 9% through the absorption of Con-way's established network and brokerage capabilities. Ongoing utilization of Con-way-originated elements, such as integrated managed transportation systems and freight optimization tools, bolsters XPO's efficiency in handling billions of pounds of freight annually. This merger solidified XPO's position as a dominant player, with the combined entity's scale enabling sustained revenue growth and technological advancements in LTL delivery.

Awards and Recognition

NTDC Achievements

Con-way Freight exhibited strong involvement in the National Truck Driving Championships (NTDC), an annual competition organized by the American Trucking Associations to recognize professional truck drivers' skills and safety records, dating back to the with consistent participation from its drivers across multiple states. The company regularly sent large contingents to state-level qualifiers, fostering a culture of excellence that resulted in numerous national-level successes, including several titles and class victories that underscored its commitment to driver proficiency. Notable Grand Champion winners from Con-way Freight include Dale L. Duncan in 2009, a San Diego-based driver who earned the top honor for the second time in his career after previously winning in 1999, having logged over 1.25 million accident-free miles. In 2010, Carl T. Krites from , secured the title in the class. This momentum continued in 2011 with Paul J. Phillips from , claiming the award in the Straight Truck class, marking three consecutive years of Con-way Freight drivers achieving the NTDC's highest individual honor. Jeffrey Langenhahn, based in Plover, Wisconsin, added to this legacy in 2014 by winning the title after excelling in the five-axle class. Post-acquisition by XPO Logistics in 2015, drivers carrying forward Con-way's legacy continued to excel; Chris Poynor from , won the Twins class championship in both 2016 and 2017, demonstrating precision in maneuvering twin-trailer configurations during the skills portion of the competition. These victories highlighted the enduring impact of Con-way's training standards on driver performance. Con-way Freight's Professional Truck Driver Training initiative played a key role in these achievements, offering a tuition-free 12-week program that combined 80 hours of classroom instruction with 160 hours of supervised on-road training to prepare new and existing drivers for rigorous safety and skills standards. By 2011, the program had graduated over 500 drivers, contributing to high placement rates in NTDC competitions through emphasis on accident prevention, vehicle inspection, and advanced maneuvering techniques. The company's overall NTDC standings reflected consistent excellence throughout the and , with frequent top-10 team finishes driven by multiple class champions and podium placements that emphasized safety and operational skill. For instance, in , Con-way Freight fielded a record 88 competitors and secured several national class titles alongside the Grand Champion win, reinforcing its reputation for prioritizing driver development. This sustained performance aligned with Con-way's broader operational safety emphasis, which integrated NTDC preparation into everyday practices to minimize incidents and enhance reliability.

Other Industry Honors

Con-way Freight earned multiple safety recognitions from the , including the President's Award in 2006 for maintaining the safest trucking fleet of its size in the nation based on low accident rates. Additionally, Con-way Freight was awarded the Grand Trophy for safety by the , along with three other safety honors, recognizing its exemplary accident prevention efforts. In , Con-way Freight achieved top rankings in the Quest for Quality Awards from Logistics Management magazine, earning the No. 1 national LTL carrier position in 2011 for superior on-time performance, value, and customer service satisfaction. These honors, based on shipper surveys, underscored the company's reliability in less-than-truckload (LTL) operations, with consistent recognition since for regional excellence. For innovation, Con-way Freight's 2007 network re-engineering initiatives were acknowledged through high scores in the EPA's SmartWay program, where its operations, including Con-way Freight, received top partner status for and environmental performance. This recognition from the U.S. Environmental Protection Agency highlighted the company's advancements in sustainable freight handling. Following its 2015 acquisition by XPO Logistics, Con-way Freight's foundational contributions to LTL efficiency supported ongoing honors, such as XPO's 2020 from magazine for advancing customer sustainability goals through reduced emissions and optimized operations. XPO continued this legacy with the EcoVadis Gold Medal in 2025, achieving a top score in environmental and ethical practices for its transport and logistics divisions.

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