Dive Brief:
- Forward Air will continue working with one of its largest customers for another two years, the company announced Tuesday. The client represented about $250 million in revenues in 2025.
- The carrier says it entered into a non-binding memorandum of understanding with the unidentified customer on July 20 and expects to retain at least half of the client’s business — with the possibility of holding onto another 25%, per the release.
- President and CEO Shawn Stewart said the “productive conversations” continues the company’s 20-year relationship with the customer.
Dive Insight:
Forward Air’s new arrangement with a major client comes days ahead of announcing its Q2 earnings on Aug. 5.
The company originally disclosed the potential loss of business from one of its largest customers when it released its Q1 earnings in May, but it also indicated it was continuing talks with the customer to retain as much of the business as possible.
Faced with potential lost revenue, the company in May announced it was selling non-core assets, which included its intermodal segment, and two legacy businesses that operated as part of Omni Logistics. Though the company did not disclose which Omni segments were being sold, the three units represented about $394 million in revenues for Forward Air in 2025.
Forward Air’s decision to sell pieces of its business followed a strategic review process announced in January 2025, which included a potential sale of the entire company. However, a buyer did not successfully come forward.
CFO Jamie Pierson said in a Q1 call with analysts in May he expected the sale of the two Omni units to close between 60 and 90 days, while it could take until the end of the year to sell the intermodal business. A Forward Air spokesperson said in an email to Trucking Dive that the company was not providing any updates on its divestitures.
While the carrier received a contract extension for a major account, Forward Air acknowledged in its release that the customer still planned to transition some business to other providers. Most of that will occur in December and throughout 2027 as part of its own operational and supplier diversification initiatives.
