FedEx Freight CEO John Smith told investors the autonomous tractor‑trailer platform is ready after two years of testing. The vehicles can leave a yard, hit the interstate and arrive at the next hub without driver input 99.9% of the time. Approval now rests with regulators, and clearance could see trucks on high‑volume routes by year‑end.

FedEx Freight, spun off Monday, runs the largest less‑than‑truckload network in North America with $8.7 billion revenue. The independence lets the unit pour cash into technology; Smith—at FedEx since 2000 and former head of FedEx Ground U.S. and Canada—aims to lead autonomous freight. The firm will earmark cash flow to retrofit fleets, hinting at a multi‑billion spend.

Investors will watch the Federal Motor Carrier Safety Administration’s rulemaking closely; approval could unlock a new efficiency wave for the self‑driving trucks market and pressure rivals to accelerate their own programs. Such a shift could compress driver labor costs, a major expense line for LTL carriers.

Analysts estimate that full automation could lift FedEx Freight’s operating margin by several percentage points, pressuring rivals such as XPO and Old Dominion to fast‑track their own autonomous initiatives. Market watchers see the move as a test case for broader trucking automation across the supply chain.