XPO, Inc. explained

XPO, Inc.
Former Name:XPO Logistics, Inc.
(2011–2022)
Type:Public
Num Locations:564 (2022)[1]
Founder:Brad Jacobs
Num Employees:38,000 (December 2023)
Footnotes:[2] [3] [4] [5] [6] [7]

XPO, Inc. is an American transportation company that conducts less-than-truckload shipping in North America.[8] [9] [10] The company has headquarters in Greenwich, Connecticut, US and 564 locations globally.

History

2011–2021

The company was initially called Express-1 Expedited Solutions and listed on American Stock Exchange under the ticker symbol XPO. It was acquired by Brad Jacobs and renamed to XPO Logistics in September 2011.[11] [12] In June 2012, XPO listed its shares on the New York Stock Exchange.[13]

XPO has acquired a number of logistics businesses in North America and overseas.[14] Some notable acquisitions include: 3PD, Inc. (August 2013), Pacer International, Inc. (March 2014), Norbert Dentressangle SA (April 2015) and Con-way Inc. (October 2015). XPO paid US$3.56 billion, which included acquired debt, for European transport company Norbert Dentressangle and $3 billion for Con-way.[15] [16]

XPO sold its truckload division (acquired from Con-Way) to TransForce for $558 million in cash.[17]

In June 2016, XPO was included in the Fortune 500 list of the largest US corporations based on revenue.[18]

The company has conducted logistics operations for the Evian Golf Championship and the Paris Marathon.[19] In 2019, XPO Logistics released a mobile game simulating freight operations for the Tour de France.[20]

Beginning in 2021, XPO Logistics broke into three separate publicly-traded companies, making XPO solely an LTL (less-than-truckload) provider.[21]

GXO Logistics

In August 2021, the company spun off its contract logistics business into a separate company named GXO Logistics, with facilities located primarily throughout North America and Europe.[22] GXO stands for "game-changing opportunities".[23] Malcolm Wilson is the CEO of the company.[24]

RXO

This was followed by XPO spinning off its brokerage and other servicesmanaged transportation, global forwarding and last-mile logisticsbusiness to a separate company named RXO, Inc. in November 2022.[25] [26] [27] [28] RXO is headquartered in Charlotte, North Carolina.[29] Drew Wilkerson is CEO of the company.[30]

2022–present

XPO dropped "Logistics" from its name in December 2022 and remains solely an LTL carrier, which allows multiple customers to transport goods in the same truck. In August 2022, Brad Jacobs announced he was stepping down as CEO and would serve as executive chairman. Mario Harik, XPO's former chief information officer, who also serves as the company's president, was appointed as CEO. In March 2022, XPO sold its North American intermodal business to Illinois-based STG Logistics for $710 million.[31] [32] In March 2023, XPO appointed J. Wes Frye, a retired industry veteran, to its board of directors.[33] In April 2023, XPO announced the hire of Dave Bates as chief operating officer of North American LTL.[34] In December 2023, XPO received approval from a Delaware bankruptcy court to acquire 28 service centers of Yellow Corporation for $870 million as a part of Chapter 11 bankruptcy.[35] [36] The acquisition was finalized in January 2024.[37]

Operations

North American LTL

XPO is the second largest provider of less-than-truckload services in North America.[38] Since November 2022, the company's North American operations have been solely focused on LTL freight transportation.[39] LTL is a freight model which involves shipping smaller quantities of goods for multiple customers at a time.[40] In 2022, XPO's CEO stated that the company operates in 99% of US zip codes., XPO produces new and re-manufactured trailers at a factory in Searcy, Arkansas.[41] [42]

European Transportation Segment

XPO provides dedicated truckload, LTL, truck brokerage, managed transportation, last mile and freight forwarding in Europe.[43] The company also manages multimodal solutions, such as road-rail and road-short sea combinations.[44] 1,000 new drivers were hired in the U.K. and Ireland in 2022.[45] [46]

Controversy

A 2018 article by The New York Times profiled the experiences of several employees working at a Memphis warehouse operated by XPO.[47] [48] [49] The warehouse had no windows or air conditioning, and sometimes temperatures there surpassed 100F. The article described several cases of warehouse workers miscarrying, which were attributed to management's refusal to allow pregnant workers to avoid strenuous jobs.[50] According to the article and XPO employees, a worker died of cardiac arrest on the warehouse floor in 2017; employees said they were told by managers to continue working. A spokesperson for XPO called the allegations in the article "unsubstantiated, filled with inaccuracies", and claimed they were "fueled by the Teamsters".

In October 2021, XPO agreed to pay $30 million to 784 drivers who said the company paid them less than minimum wage.[51] [52]

See also

Notes and References

  1. Web site: Schott . Paul . 2022-10-31 . Greenwich-based XPO Logistics to spin off truck-brokerage business on Tuesday . 2023-03-14 . CT Insider . en-US . After the spin-off, XPO will serve about 43,000 shippers, with 564 locations and 38,000 employees worldwide..
  2. Web site: Form 10-k files 02/08/2024 .
  3. Web site: XPO, Inc. 2022 Annual Report (Form 10-K) . February 13, 2023 . U.S. Securities and Exchange Commission.
  4. News: November 13, 2013 . XPO Logistics Ranked Fourth Largest Freight Brokerage Firm and Top 50 Logistics Company . Reuters .
  5. News: Profile:XPO Logistics, Inc. . Reuters . dead . https://web.archive.org/web/20101010080126/http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=XPO . October 10, 2010.
  6. Web site: October 31, 2018 . Facts and Figures . November 1, 2018 . XPO Logistics.
  7. News: February 10, 2020 . XPO Logistics hires new CFO as it weighs asset sale . The Wall Street Journal .
  8. Web site: XPO Logistics: Fast growth through acquisitions and management style . Westfair Communications . 15 March 2023 . 17 November 2017.
  9. Web site: Jacobs puts $150 million into Express-1, aims big . Reuters . 15 March 2023 . en . 14 June 2011.
  10. Web site: Robinson . Chuck . 2022-08-09 . XPO Logistics revenue's up as company manages changes . 2023-02-02 . Land Line . en-US.
  11. XPO's Billionaire Chairman Is Hunting for His Next Big Deal . Time . 14 March 2023 . en . 27 November 2022.
  12. Web site: Better Than Amazon? How Bradley Jacobs Turned A $63M Bet Into A $12 Billion Transportation Empire . Forbes . 14 March 2023 . en.
  13. Web site: XPO Logistics heads to NYSE . FreightWaves . 11 June 2012.
  14. News: May 3, 2018 . XPO Logistics eyes up to $8bn in deals . .
  15. Web site: April 28, 2014 . US logistics group XPO buying France's Dentressangle . Business Insider.
  16. Web site: September 9, 2015 . XPO Logistics to Acquire Trucker Con-way in $3 Billion Deal . The Wall Street Journal.
  17. Web site: October 27, 2016 . XPO Logistics Sells Truckload Shipping Business to TransForce for $558 Million . The Wall Street Journal.
  18. Web site: June 6, 2016 . Here are the 15 New Companies Joining the Fortune 500 . June 7, 2016 . Fortune.
  19. News: September 15, 2017 . Golf: XPO Logistics nominato partner ufficiale per i trasporti della Evian Championship . it-IT . SPORTFAIR . October 22, 2017.
  20. Web site: XPO Moves The Tour: The Game . July 22, 2019 . App Store.
  21. Web site: XPO Logistics will now focus just on trucking, as it spins off and sells other businesses . 14 March 2023 . CNBC . March 8, 2022 . en.
  22. News: Young . Liz . 2022-08-04 . Brad Jacobs Will Step Aside as CEO of XPO Logistics . en-US . Wall Street Journal . 2023-02-02 . 0099-9660.
  23. Web site: XPO Sets GXO Logistics as Name of New Spinoff Company . Transport Topics . 15 March 2023 . en . 18 March 2021.
  24. News: Council . Jared . 2021-04-10 . XPO Logistics Taps CIO for Supply-Chain Services Spinoff . en-US . Wall Street Journal . 2023-02-02 . 0099-9660.
  25. Web site: O'Neal . Lydia . March 8, 2022 . XPO Logistics to Spin Off Freight Brokerage, Exit Intermodal and Europe Business . August 3, 2022 . Wall Street Journal.
  26. Web site: O'Neal . Lydia . May 9, 2022 . XPO Logistics Names CEO for New Freight Spinoff . August 3, 2022 . Wall Street Journal.
  27. Web site: Northington . Laurie . June 9, 2022 . XPO Taps Yoav Amiel as Chief Information Officer for Spin-Off . August 3, 2022 . Home Furnishings Business.
  28. Web site: July 12, 2022 . XPO Names New Tech Brokerage Company RXO . July 13, 2022 . Transport Topics.
  29. Web site: Schott . Paul . 2022-07-13 . XPO Logistics announces name of truck-brokerage spin-off . 2023-02-02 . CT Insider . en-US.
  30. Web site: RXO CEO Drew Wilkerson Named to Charlotte Business Journal’s Most Admired CEO list . Yahoo! Finance . Business Wire.
  31. Web site: Schott . Paul . 2022-03-25 . Greenwich's XPO Logistics sells shipping business for $710M . 2023-01-30 . GreenwichTime . en-US.
  32. News: O'Neal . Lydia . 2022-03-25 . XPO Logistics Sells Intermodal Business to STG . en-US . Wall Street Journal . 2023-01-30 . 0099-9660.
  33. Web site: XPO names former Old Dominion CFO to board of directors . 2023-05-30 . Transport Dive . en-US.
  34. Web site: Root . Al . XPO Stock Soars. One Executive Is Worth More Than Half a Billion Dollars. . 2023-05-30 . www.barrons.com . en-US.
  35. News: Nakrosis . Stephen . 2023-12-12 . XPO Gets Approval to Acquire 28 Service Centers as Part of Yellow's Bankruptcy . en-US . Wall Street Journal . 2023-12-13 . 0099-9660.
  36. Web site: 2023-12-13 . XPO ready to deploy 28 new service centers . 2023-12-13 . Yahoo Finance . en-US.
  37. Web site: Jarrell . Zachary . Jan 25, 2024 . Large freight company acquires former Yellow Corp. facility in Dayton during bankruptcy auction . 2024-01-29 . www.bizjournals.com.
  38. Web site: 9 September 2015 . XPO Logistics to buy U.S. trucker Con-way in $3 bln deal . 15 March 2023 . Reuters . en.
  39. Web site: XPO Logistics invests in IT for the long haul . 2023-03-02 . CIO . en-US.
  40. Web site: Nelissen . Leo . 2023-02-20 . The Hidden Gem Of Logistics: XPO Inc.'s Untapped Potential (NYSE:XPO) Seeking Alpha . 2023-03-02 . seekingalpha.com . en.
  41. Web site: Gilroy . Roger . March 25, 2022 . XPO Ramps Up Trailer Production in Arkansas . August 3, 2022 . Transport Topics.
  42. Web site: Stocking . Richard . April 8, 2022 . Trucking is changing. Are you adapting? . August 3, 2022 . Commercial Carrier Journal.
  43. News: Smith . Jennifer . 2018-02-07 . XPO Logistics Extending Home Delivery Service to Europe . en-US . Wall Street Journal . subscription . 2023-10-31 . 0099-9660 . live . https://web.archive.org/web/20201109040934/https://www.wsj.com/articles/xpo-logistics-extending-home-delivery-service-to-europe-1518043189 . Nov 9, 2020 .
  44. Web site: XPO 2022 10-K . Investors - XPO Inc. .
  45. Web site: XPO hires more than 1,000 UK drivers in 2022 . Elizabeth . Baker . Parcel and Postal Technology International . 14 March 2023 . 30 November 2022.
  46. Web site: XPO hires more than 1,000 UK drivers in 2022 following salary review . Helen . Gilbert . 30 November 2022 . The Grocer . 14 March 2023 . en . live . https://archive.today/20240425024132/https://www.thegrocer.co.uk/movers/xpo-hires-more-than-1000-uk-drivers-in-2022-following-salary-review/674065.article . 25 Apr 2024 .
  47. News: Silver-Greenberg . Jessica . Kitroeff . Natalie . 2018-10-21 . Miscarrying at Work: The Physical Toll of Pregnancy Discrimination . en-US . The New York Times . 2021-12-06 . 0362-4331.
  48. Web site: XPO Gains National Notoriety for its Horrific Working Conditions. . 15 January 2023 . Memphis Flyer.
  49. Web site: Working conditions in Memphis warehouse linked to miscarriages, NYT reports . 15 January 2023 . The Commercial Appeal.
  50. Web site: 31 October 2018 . Life and Death on the Warehouse Floor . 15 January 2023 . Ms. Magazine.
  51. News: Port truckers win $30 million in wage theft settlements . Roosevelt . Margot . 2021-10-13 . 2023-07-30 . Los Angeles Times.
  52. News: XPO settles 2 California worker classification cases for nearly $30M . Kingston . John . 2021-10-13 . 2023-07-30 . FreightWaves.

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