LAKELAND, FL-In a move that will see 100 truck terminalproperties across the US shuttered, FedEx is merging its FedExFreight and FedEx National LTL networks. FedEx will cmbine theoperations by Jan. 30, 2011. About 1,700 workers will beterminated.

Memphis-based FedEx made the announcement in its fiscal firstquarter earnings report on Thursday. The FedEx Freight businessreported an operating loss of $16 million on revenue of $1.26billion. Last year, revenue was $982 million, but the company hadan operating income of $2 million. The LTL business postedoperating losses in the quarter, driven by lower yields and highervolume-related costs. Yields declined 3% year-over-year.

“As manufacturing is down in the United States, so too is thedemand for this type of space,” Ted Morandin, founder of MorpropAdvisors, a commercial real estate underwriting and investment firmin Annapolis, MD, tells GlobeSt.com. “The FedEx consolidation comesat a time when we are already looking at a 40% vacancy rate in thetransportation real estate sector. It’s extremely soft.”