Forward Air Corporation (Forward) operates as an asset-light freight and logistics company. The company provides less-than-truckload (‘LTL’), truckload and intermodal drayage services and freight brokerage and supply chain services across North and South America, Europe and Asia.
Globally, the company provides customized asset-light, high-touch logistics and supply chain management solutions with deep customer relationships in high-growth end markets. The company offers premium services that ty...
Forward Air Corporation (Forward) operates as an asset-light freight and logistics company. The company provides less-than-truckload (‘LTL’), truckload and intermodal drayage services and freight brokerage and supply chain services across North and South America, Europe and Asia.
Globally, the company provides customized asset-light, high-touch logistics and supply chain management solutions with deep customer relationships in high-growth end markets. The company offers premium services that typically require precision execution, such as expedited transit, delivery during tight time windows and special handling. On January 25, 2024, the company completed the acquisition of Omni Newco LLC (‘Omni’).
Services Provided
The company’ services are classified into three segments: Expedited Freight, Omni Logistics, and Intermodal.
Expedited Freight: The company operates a comprehensive national network that provides expedited regional, inter-regional and national LTL services. Expedited Freight offers customers local pick-up and delivery and other services including truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling services.
Omni Logistics: An asset-light, high-touch logistics and supply chain management company with deep customer relationships in high-growth end markets. Omni delivers domestic and international freight forwarding, fulfillment services, customs brokerage, distribution, and value-added services for time-sensitive freight to United States-based customers operating both domestically and internationally. Omni provides business-to-business (‘B2B’) solutions to prominent United States-based customers across a variety of attractive end markets, including the technology, retail, media, logistics, life sciences and e-commerce sectors, many of which have had long-term relationships with Omni.
Intermodal: The company 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 operates primarily in the Midwest and Southeast, with a smaller operational presence in the Southwest, Mid-Atlantic, and West Coast.
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. Principal components of the company's efforts are to expand service offerings and service footprint; manage pricing and freight characteristics; continue to focus on delivering best-in-class service; and enhance information systems.
Operations
Expedited Freight
The company markets its Expedited Freight services primarily to freight and logistics intermediaries (such as freight forwarders and third-party logistics companies), and airlines (such as integrated air cargo carriers, and passenger and cargo airlines). The company offers its customers a high level of service with a focus on on-time, damage-free deliveries.
Shipments
During 2024, approximately 24.0% of the freight handled by the company’s LTL network was for overnight delivery, approximately 63.6% was for delivery within two to three days and the balance was for delivery in four or more days.
Expedited Freight markets its services primarily to freight and logistics intermediaries. Also, because Expedited Freight does not place significant size or weight restrictions on shipments, the company generally does not compete directly with integrated air cargo carriers such as United Parcel Service and FedEx Corporation in the overnight delivery of small parcels.
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 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 the company seeks to establish long-term relationships to assure dependable service and availability. Expedited Freight has established specific guidelines relating to safety records, driving experience and personal evaluations that the company uses to select its Leased Capacity Providers. To enhance the company’s relationship with the Leased Capacity Providers, Expedited Freight seeks to pay rates that are generally above prevailing market rates, and its Leased Capacity Providers often are able to negotiate a consistent work schedule for their drivers. Usually, Leased Capacity Providers negotiate schedules for their drivers that are between the same two cities or along a consistent route, improving quality of work life for the drivers of the company’s Leased Capacity Providers and, in turn, increasing the retention rate of drivers and Leased Capacity Providers.
The company also purchases transportation capacity supplied by third-party contracted motor carriers and transportation intermediaries. The company 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 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: 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 is 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. Integrated air cargo carriers use its network to provide overflow capacity and other services, including shipment of bigger packages and pallet-loaded cargo.
Omni Logistics
The company’s core offerings include:
Domestic Freight
Partnering with leading carriers to provide a full menu of LTL, expedited and truckload services based on various time requirements;
Specialized delivery for high-value freight, including white glove and team delivery, installation, unpacking, debris removal, light assembly, repackaging, inspection and crating/uncrating;
Supply chain engineering, appointment scheduling, site survey, track and trace, 24-hour call center and database management;
Air charter, next flight out, hand carry and other expedited services;
Reverse logistics, trade shows, project logistics, cold chain management, chain of custody and small pack;
Value-Added Warehousing and Distribution
Global warehousing and distribution and e-commerce fulfillment solutions, including inventory management, cross docking, kitting and pick and pack;
Free Trade zone and bonded warehouse capabilities;
System level testing, tape and reel, ink/laser marking, repair, splitting, baking, kitting, packing, binning and returns management; and
International Freight
Primarily focused on Asia to the United States and Intra-Asia air transportation with expanding service offerings in other markets;
International compliance and customs brokerage ensure stringent compliance requirements are met while expediting delivery times.
Operations
Omni’s primary office is located near Dallas, Texas, with other offices located around the globe to support their global supply chain customers. Omni has 109 service centers, primarily located in the United States and the Asia-Pacific region.
Transport Services
Omni primarily utilizes third-party transportation providers including ground, air and ocean transportation providers, and utilizes a mix of company-employed drivers. During 2024, approximately 99% of Omni’s direct transportation expenses were provided by third-party transportation providers and 1% by company-employed drivers.
Customer and Go-To Market Strategy
Omni’s customer base is primarily consists of medium to large corporate customers providing goods in the technology, manufacturing and retail sectors, as well as other transportation companies that require additional supply chain solutions.
Omni’s sales force focuses on servicing the global supply chain of United States-based customers with support from a centralized solutions team with cross-functional expertise dedicated to supporting the salespeople in global multi-modal supply chain solutions. Omni deploys global, multi-modal capabilities, which allows the salespeople to partner across customers’ organizations and supply chains by offering a comprehensive and a unique suite of global services to meet highly complex customer needs, including global logistics services, visibility and execution.
Intermodal
Intermodal also provides line haul and local LTL 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 total network 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.
Transportation
Intermodal utilizes a mix of company-employed drivers, Leased Capacity Providers and third-party motor carriers. During 2024, approximately 62.1% of Intermodal’s direct transportation expenses were provided by Leased Capacity Providers, 33.5% by company-employed drivers, and 4.4% by third-party motor carriers.
All the company’s Intermodal company and independent contractor tractors are equipped with computer tablets, which enables it to communicate with the company’s 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 is primarily consisting of international freight forwarders, passenger and cargo airlines, beneficial cargo owners and steamship lines.
Marketing
The company markets all 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, www.forward-intermodal.com, and omnilogistics.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. Typically, the first quarter is the weakest while the third and fourth quarters are 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 (year December 2024).
Equipment
The company manages a trailer pool that is utilized by all its businesses to move freight through the company’s networks. The company’s trailer pool includes dry van, refrigerated and roller-bed trailers, and substantially all its trailers are 53 feet long. The company owns the majority of the trailers it uses, but the company supplements at times with leased trailers. As of December 31, 2024, there were 5,346 owned trailers in the company’s fleet with an average age of approximately nine years. In addition, as of December 31, 2024, the company also had 351 leased trailers in its fleet. As of December 31, 2024, the company had 325 and 716 owned and leased tractors and straight trucks, respectively, in its fleet, with an average age of approximately six years.
Regulation
The company focuses on GHG Emissions Reduction Practices and Air Quality Practices.
The company is regulated by various United States and state agencies, including the DOT. The company is also subject to laws and regulations under the United States 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.
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 United States 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’), which introduced a new test for determining worker classification that is viewed as expanding the scope of employee relationships and narrowing the scope of independent contractor relationships.
Service Marks
Through the company’s subsidiary Forward Air Royalty, LLC, it holds the United States federal trademark registrations associated with the following service marks: Forward (logo), circle design (logo), Forward Air, Forward Air (logos), Forward Air Complete, Forward Air Complete (logo), TQI, inc. (logo), FAF, Inc. (logo), North America’s Most Complete Road Feeder Network, and Keeping Your Business Moving Forward. The company additionally has certain common law service mark rights, including in the tagline When It Matters, Think Forward, that is not registered with the United States Patent and Trademark Office.
Through the company’s subsidiary Omni Logistics, LLC, it holds the trademark applications and registrations associated with the Omni logo and word mark in Canada, Chile, China, Colombia, Ecuador, European Union, Hong Kong, Japan, Korea, Malaysia, Mexico, Peru, Singapore, Taiwan, Thailand, United Kingdom and the United States and the United States federal trademark registration associated with the word mark LiVe Logistics. Through the company’s subsidiary Mach 1 Air Services, LLC, it holds the Mexican trademark registrations associated with the Mach 1 logo and word mark and with the tagline Others promise, the company delivers. Through the company’s subsidiary Pacific Logistics, LLC, it holds the United States federal trademark registrations for PLC Pacific Logistics Corp. (word mark) and PLC (word mark). Through the company’s subsidiary Trinity Logistics USA, Inc., it holds the word mark registration of Trinity Logistics in the European Union. Through T L World (Private) Limited (Sri Lanka), it holds the trademark registration for Trinity Logistics (logo). Through the company’s subsidiary Bigger, Farther, Faster, LLC (d/b/a Ramp Logistics), it holds the United States federal trademark registration associated with the Ramp Logistics word mark and logo. Through the company’s subsidiary IVIA Services, LLC, it holds the United States federal trademark registration associated with the word mark IVIA. Through the company’s subsidiary Millhouse Logistics Services, LLC, it holds the United States federal trademark registration associated with the Millhouse logo. Through the company’s subsidiary A G World Transport, Inc., it holds the United States federal trademark registrations associated with the two AG logos.
History
Forward Air Corporation was founded as a corporation under the laws of the state of Tennessee in 1981. The company was incorporated in 1981.
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