FedEx has announced it will spin off its cargo business to a new publicly traded company as it aims to shore up its business amid weak demand.

The package delivery group, which is considered a bellwether of global economic growth because of the wide range of goods it ships, said it hoped the breakup would allow for more “customised operational execution” and “tailored investment and capital allocation strategies” to serve the “evolving needs” of less-than-truckload (LTL) markets, which carry goods or cargo that weigh more at 150 pounds.

“This is the right time to pursue a separation as we respond to the unique dynamics of the LTL market,” said Raj Subramaniam, FedEx president and chief executive. “Through this process, we will unlock value for our freight business and position FedEx to create even more value for stockholders.”

FedEx shares jumped 10.2 percent in after-hours trading in New York.