About Forward Air

Forward Air Corporation operates as an asset-light freight and logistics company. The company provides less-than-truckload (LTL), final mile, truckload and intermodal drayage services across the United States and in Canada. It offers premium services that typically require precision execution, such as expedited transit, delivery during tight time windows and special handling. Segments The company operates through two segments, Expedited Freight and Intermodal. Expedited Freight segment This segment provides expedited regional, inter-regional and national LTL, final mile and truckload services. The company markets its Expedited Freight services primarily to freight and logistics intermediaries (such as freight forwarders and third-party logistics companies), airlines (such as integrated air cargo carriers, and passenger and cargo airlines) and retailers (such as retailers of heavy bulky appliances). The company offers its customers a high level of service with a focus on on-time, damage-free deliveries. The company’s Expedited Freight network encompasses approximately 92% of all continental U.S. zip codes, with service in Canada and Mexico. Shipments The average weekly volume of freight moving through the company’s LTL network was approximately 54.8 million pounds per week and its average shipment weighed approximately 764 pounds in 2022. Although the company imposes no significant size or weight restrictions, it focuses its marketing and price structure on shipments of 200 pounds or more. This segment markets its services primarily to freight and logistics intermediaries, however, it may at times, provide such services to shippers if the opportunity is consistent with Expedited Freight’s strategy. Transportation Expedited Freight secures transportation capacity from four sources: independent contractors that own and lease their equipment (primarily tractors) to the company (Leased Capacity Providers); third-party contracted motor carriers; capacity secured by transportation intermediaries, including freight brokers; and the company-owned equipment operated by employee drivers. The majority of the transportation capacity utilized by Expedited Freight is provided by Leased Capacity Providers, with whom it seeks to establish long-term relationships with to assure dependable service and availability. The company also purchases transportation capacity supplied by third-party contracted motor carriers and transportation intermediaries. The majority of the transportation capacity utilized in its big and bulky final mile service is provided by third-party motor carriers, and it utilizes capacity from both third-party motor carriers and transportation intermediaries to support other Expedited Freight service offerings in response to seasonal demands and volume surges in particular markets, to handle overflow volume. A small portion of Expedited Freight's transportation capacity is provided by employee drivers operating company-owned equipment. Other Services Expedited Freight provides additional value-added services that are integrated into the overall operation of its network. Expedited Freight offers final mile services which include the delivery and installation of heavy bulky appliances, such as washing machines, dryers, dishwashers and refrigerators. The company significantly expanded the final mile geographic footprint and operate in over 117 locations nationwide. Expedited Freight offers truckload services, which include expedited truckload brokerage, dedicated fleet services, as well as high security and temperature-controlled logistics services. Other Expedited Freight services allow customers to access the following services from a single source, such as customs brokerage; warehousing, dock and office space; hotshot or ad hoc ultra-expedited services; and shipment consolidation and handling, such as shipment build-up and break-down and reconsolidation of air or ocean pallets or containers. Customers The company’s Expedited Freight wholesale customer base primarily consists of freight forwarders, third-party logistics (3PL) companies, integrated air cargo carriers and passenger, cargo airlines, steamship lines and retailers. Expedited Freight’s freight forwarder customers vary in size from small, independent, single facility companies to large, international logistics companies. The company’s dependable service and wide-ranging service offerings also make Expedited Freight an attractive option for 3PL providers, which is one of the fastest growing segments in the transportation industry. Integrated air cargo carriers use its network to provide overflow capacity and other services, including shipment of bigger packages and pallet-loaded cargo. Intermodal segment This segment provides first- and last-mile high value intermodal container drayage services both to and from seaports and railheads. Intermodal also offers dedicated contract and container freight station (CFS) warehouse and handling services. Intermodal also provides linehaul and local less-than-truckload service in the Midwest, as well as CFS warehousing services (e.g. devanning, unit load device build-up/tear-down, and security screening) for air and ocean import/export freight at five of its Midwest terminals. The company’s Intermodal service differentiators include immediate proof of delivery and signature capture capability via tablets; all drivers receive dispatch orders on hand-held units and are trackable via GPS; and daily container visibility and per diem management reports. Operations Intermodal’s primary office is located in Oak Brook, Illinois. Intermodal’s network consists of 30 locations primarily in the Midwest and Southeast, with a smaller operational presence in the Southwest, Mid-Atlantic, and West Coast. Transportation Intermodal utilizes a mix of company-employed drivers, leased capacity providers, and third-party motor carriers. All of the company’s Intermodal and independent contractor tractors are equipped with computer tablets, which enable it to communicate with its drivers, plan and monitor shipment progress and monitor its drivers’ hours of service. The company uses the real-time global positioning data obtained from these devices to improve customer and driver service, and provide a high level of shipment visibility to its customers (including immediate proof of delivery signature capture). Customers Intermodal’s customer base primarily consists of international freight forwarders, passenger and cargo airlines, beneficial cargo owners and steamship lines. Equipment The company manages a trailer pool that is utilized by all of its businesses to move freight through its networks. The company’s trailer pool includes dry van, refrigerated and roller-bed trailers, and substantially all of its trailers are 53 feet long. The company owns the majority of the trailers it uses, but it supplements at times with leased trailers. As of December 31, 2022, the company had 6,021 owned trailers in its fleet with an average age of approximately nine years. In addition, as of December 31, 2022, the company had 705 leased trailers in its fleet. As of December 31, 2022, the company had 273 owned tractors and straight trucks in its fleet, with an average age of approximately three years. In addition, as of December 31, 2022, the company had 643 leased tractors and straight trucks in its fleet. Marketing The company markets all of its services through a sales and marketing team located in major markets of the United States. Senior leadership is also actively involved in sales and marketing to national and local accounts. The company participates in trade shows and advertise its services through digital marketing channels, trade publications, and the Internet via www.tlxpedited.com, www.forwardair.com, www.forwardaircorp.com, and www.forward-intermodal.com. The company’s websites promote and describe its services in addition to lead generation support. Seasonality Generally, the company’s operating results have been subject to seasonal trends when measured on a quarterly basis with the first quarter (year ended December 31, 2022) the weakest and the third and fourth quarters have been the strongest. This seasonal pattern has been the result of numerous factors, such as economic conditions, customer demand, weather, and national holidays. Additionally, a significant portion of the company’s revenue is derived from customers whose business levels are impacted by trends in the economy. Service Marks Through one of its subsidiaries, the company holds the U.S. federal trademark registrations associated with the following service marks, such as Forward (logo), Forward Air, Inc. (logos), circle design (logo), Forward Air, Forward Air (logos), Forward Air Complete, Forward Air Complete (logo), Forward Air Solutions, Forward Air Solutions (logo), TQI, inc. (logo), TQI (logo), Central States Trucking Co. (logo), FAF, Inc. (logo), FSA Logistix (logo), First in ‘last mile’ Home Delivery, North America’s Most Complete Road Feeder Network, and Keeping Your Business Moving Forward. The company also holds an allowed federal trademark application for the Precision Execution logo. The company additionally has certain common law service mark rights, including in the tagline When It Matters, Think Forward, that are not registered with the United States Patent and Trademark Office. Strategy The company’s strategy is to take advantage of its core competencies in precision execution to provide asset-light freight and logistics services to profitably grow in the premium segments of the markets it serves. The key elements of the company's strategy are to expand service offerings and terminal footprint; manage freight characteristics; continue to focus on delivering best-in-class service; pursue strategic acquisitions, and enhance information systems. Regulation The company is regulated by various United States and state agencies, including the U.S. Department of Transportation (DOT). The DOT and the Federal Motor Carrier Safety Administration (FMCSA), an agency within the DOT, manages a Compliance, Safety, Accountability initiative (CSA) which governs matters, such as safety requirements and compliance, registration to engage in motor carrier operations, drivers’ hours of service (HOS) requirements, and certain mergers, consolidations, and acquisitions. The company is also subject to laws and regulations under the U.S. Environmental Protection Agency and the Occupational Safety and Health Administration, which regulate safety, the supervision of hazardous materials, water discharges, air emissions, solid waste disposal and the release and cleanup of other substances. In addition, the company is subject to compliance with cargo-security and transportation regulations issued by the Transportation Security Administration and Customs and Border Protection (CBP) within the U.S. Department of Homeland Security, and its domestic customs brokerage operations are licensed by CBP. The company is also subject to employment laws and regulations, including the changing regulatory landscape, with the potential effects of California Assembly Bill 5 (California AB5). History Forward Air Corporation was founded as a corporation under the laws of the state of Tennessee in 1981.