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Forward Air Retains Half of $250M Account After Customer Diversification Push

Forward Air will retain at least 50% of a major $250 million customer account through a non-binding memorandum of understanding, the company announced Tuesday. The arrangement potentially extends to 75% of the business and locks in the current contract for at least two years, with service transitions of the unretained portion occurring beginning in December. The customer, representing roughly 10% of Forward's annual revenue, had signaled in May that it was seeking vendor diversification. Forward shares surged 19% on the news. The deal provides relief following the account's potential loss, which had prompted the carrier to abandon its sale process. The company now plans to divest its intermodal unit and two legacy Omni Logistics businesses that generated $394 million in combined revenue last year, using proceeds to delever the balance sheet.