Caliber System
| Company type | Public |
|---|---|
| Industry | Transportation, Logistics |
| Predecessor | Roadway Services Inc. (until 1996) |
| Founded | 1982 |
| Fate | Acquired by FedEx in 1998 |
| Headquarters | Akron, Ohio , United States |
| Products | Roadway Express, Viking Freight, Roadway Package System (RPS), Roberts Express, Caliber Logistics, Caliber Technology |
Caliber System Inc., which operated under the name Roadway Services Inc. until 1996, was a transportation holding enterprise based in Akron, Ohio, USA. It managed multiple logistics subsidiaries such as Roadway Express, Viking Freight, and Roadway Package System (RPS). Following the divestiture of Roadway Express in 1995, Caliber was purchased by FedEx in 1998, with its divisions subsequently rebranded as FedEx Ground, FedEx Freight, FedEx Custom Critical, and FedEx Global Logistics.
Establishment and Expansion
Roadway Services Inc. (RSI) was founded in 1982 to serve as the parent company for the nationwide less-than-truckload (LTL) carrier Roadway Express. Initially operating solely with Roadway Express, RSI broadened its portfolio through acquisitions, including the short-haul carrier Spartan Express Inc. and the specialized truckload firm Nationwide Carriers Inc. in 1984, as well as Roberts Express, a same-day critical trucking company acquired from Emery Air Freight.
In 1985, RSI introduced Roadway Package System (RPS) in Pittsburgh to challenge UPS by providing more affordable package delivery options. By 1988, RPS had established 130 terminals covering approximately 70% of the U.S. market.
Throughout the late 1980s and early 1990s, RSI further expanded by purchasing western regional carrier Viking Freight while discontinuing the unprofitable Nationwide Carriers in 1989. Spartan Express was merged into Viking Freight in 1990. Roadway Express extended its reach internationally with European operations commencing in 1991 and connections to Pacific Rim ports shortly thereafter. That same year, RSI replaced Pan Am Corp. on the Dow Jones Transportation Average, ranking as the third-largest motor freight carrier in the United States.
In 1993, RSI acquired Southwest regional LTL carrier Central Freight Lines, incorporating it into its Roadway Regional Group alongside Viking, Spartan, and Cole's Express in New England. The company also ventured into air freight by launching Roadway Global Air (RGA), headquartered in Indianapolis.
Divestiture of Roadway Express
While RSI’s smaller regional carriers operated non-unionized workforces, Roadway Express maintained union representation and was impacted by a nationwide Teamsters Union strike in April 1994. This labor action arose from unsuccessful negotiations between the Teamsters and Trucking Management Inc., which represented 23 major trucking firms including Roadway Express, Consolidated Freightways, and Yellow Freight. The strike lasted 24 days and resulted in RSI incurring $68 million in losses during that quarter at Roadway Express.
This labor unrest highlighted profitability issues faced by Roadway Express compared to RSI’s non-union subsidiaries. Although Roadway generated over 40% of RSI’s $5 billion annual revenue, it lagged behind other divisions in profitability. As a result, RSI announced in August 1995 that it would spin off Roadway Express as an independent publicly traded entity. Following the spinoff, Roadway Express posted $21.8 million in profits during its first year of operation. In 2003, Yellow Freight acquired Roadway, leading to the formation of Yellow Roadway Corporation.
Caliber System
In November 1995, Roadway Services announced a rebranding to Caliber System effective from January 1996, concurrently transferring its stock exchange listing from Nasdaq to the NYSE under the ticker "CBB." Alongside this change, Roadway Logistics and Roadway Technology were renamed Caliber Logistics and Caliber Technology, respectively.
Caliber implemented several cost-reduction strategies, including the closure of RGA in November and the subsequent sale of its assets to Burlington Air Express, following financial losses incurred in that venture. In December, it merged Viking (along with its subsidiary Spartan), Central, and Cole's into a single nationwide carrier known as Viking Freight Inc. Despite these restructuring efforts, Caliber continued to experience substantial financial deficits.
By July 1996, Viking instituted a wage freeze and by December announced plans to eliminate 1,500 positions and shut down 30 terminals as part of expense reduction initiatives. Although subsidiaries such as RPS, Roberts, and Caliber Logistics reported positive results in the first quarter of 1997, Caliber declared in March its intention to divest or close much of Viking’s eastern operations, shifting focus toward the West Coast market.
Since the consolidation of its regional carriers into a nationwide network, Viking had accumulated losses amounting to approximately . The reorganization led to the elimination of roughly 4,000 jobs and the closure of 83 terminals primarily servicing eastern, southern, and central U.S. regions through former Coles and Spartan units. In June 1997, Caliber sold Central’s former assets to an investment group led by prior Central management alongside trucking entrepreneur Jerry Moyes, thereby restoring Central Freight Lines as an independent regional less-than-truckload (LTL) carrier.
Acquisition by FedEx
In January 1998, FDX Corp., now known as FedEx Corp., acquired Caliber System. FDX Corp. was originally established by Federal Express to oversee its express operations along with the newly acquired Caliber subsidiaries. Following the acquisition, Roadway Express (), previously a Caliber subsidiary, replaced Caliber on the Dow Jones Transportation Average.
Fate of subsidiaries
Prior to FedEx’s acquisition, Caliber divested or discontinued several key subsidiaries:
- The truckload division Nationwide Carriers was discontinued in 1988 with its operations absorbed by Viking.
- Roadway Express was spun off as an independent public company in 1995 and later acquired by Yellow Corp. in 2003, leading to the formation of Yellow Roadway Corporation.
- Roadway Global Air ceased operations in 1995 with its assets sold to Burlington Air Express.
- Spartan Express became part of Viking in 1990, merged fully into Viking in 1996, and ended operations in 1997 when Viking withdrew from the southeastern market.
- Coles Express was integrated into Viking in 1996 and closed in 1997 following Viking’s exit from the northeastern region.
- The assets of Central Freight Lines were sold back to former management in 1997 and resumed independent operation.
At the time of acquisition, Caliber retained five principal subsidiaries:
- RPS, which was rebranded as FedEx Ground in 2000 and expanded FedEx’s courier service offerings.
- Viking, renamed FedEx Freight West in 2002, eventually merged with American Freightways (FedEx Freight East) and later Watkins Motor Lines to create a consolidated entity known as FedEx Freight.
- Roberts, specializing in same-day critical freight services, became FedEx Custom Critical in 2000.
- Both Caliber Logistics and Caliber Technology were combined into FedEx Global Logistics after the acquisition.
See also
- Articles with short description
- 1998 mergers and acquisitions
- Companies headquartered in Akron, Ohio
- Logistics firms in the United States
- Trucking firms in the United States
- Transportation companies located in Ohio
- Businesses founded in Ohio in 1982
- American enterprises established in 1982
- Transport enterprises founded in 1982
- 5
- American companies established in 1982
- Companies of the United States by year of establishment