FEDEX FREIGHT HOLDING COMPANY SAYS IT TERMINATED MICHAEL B. LYONS AS EXECUTIVE VICE PRESIDENT ON SEPT. 2, 2026, AFTER DETERMINING FOLLOWING AN INTERNAL INVESTIGATION THAT HE VIOLATED THE CODE OF CONDUCT, THOUGH HIS CONDUCT DID NOT IMPACT FEDEX FREIGHT'S FINANCIAL REPORTING OR PERFORMANCE - SEC FILING

US freight costs are surging: The LMI transportation prices index rose +5.6 points in April, to 95.0, the highest since the April 2018 peak of 96.0 points and the 3rd-highest since the index was launched in 2016. The Logistics Managers' Index, or LMI, is a monthly survey of over 100 US supply chain executives that tracks the expansion or contraction of the US logistics industry across 8 key metrics, including inventory, warehousing, and transportation costs and capacity. A transportation prices reading above 50 indicates that freight costs are rising, while a reading below 50 indicates a decline. The LMI transportation prices index has surged +40.8 points, or +75%, since September 2025. The increase in freight costs comes at a time when inflation is already rising to a 3-year high. Inflationary pressures in transportation are intensifying.