According to wwd.com, FedEx has agreed to sell its contract logistics business, FedEx Supply Chain, to French container shipping giant CMA CGM for $1.4 billion.
Strategic Refocus and Portfolio Streamlining
The divestiture marks a decisive step in FedEx’s multi-year effort to run a leaner operation and sharpen its focus on core air and ground parcel delivery services. The Memphis, Tenn.-based company spun off its FedEx Freight trucking unit into a standalone entity on June 1, underscoring its broader strategic pivot. FedEx Supply Chain — which operated through 80 facilities as of May 31, 2025 — specialized in fulfillment, distribution, warehousing, transportation management, and reverse logistics including returns, repairs, and refurbishment.
FedEx CEO Raj Subramaniam stated the move enables the company to deepen investment in high-value verticals such as healthcare, automotive, aerospace, and data centers. “By streamlining our portfolio, FedEx is better positioned to execute our long-term vision and continue to serve as the heartbeat of the industrial economy, delivering unmatched connectivity, reliability, and value to our customers globally,” said Subramaniam in a statement.
CMA CGM’s North American Expansion
The acquisition nearly triples CMA CGM’s North American contract logistics footprint via its Ceva Logistics subsidiary. Post-closing, the combined entity will operate approximately 150 warehouses and employ 20,000 people across more than 240 locations in North America. Of those, nearly 10,000 employees will transfer from FedEx.
This transaction advances CMA CGM’s broader diversification strategy beyond ocean freight — a move accelerated by volatility in container freight rates. From 2019 to 2024, CMA CGM’s equity-adjusted volumes at its owned or operated ports and terminals rose 55 percent, the steepest growth among major ocean carriers, according to Drewry. The company has built out a global network of ports and terminal operations to gain greater control over end-to-end container supply chains.
Commercial Integration and Leadership Transition
The deal is expected to close in 2026, subject to customary regulatory approvals. Notably, the $1.4 billion enterprise value matches the amount FedEx originally paid to acquire the unit — then known as Genco — in 2015. Following closure, FedEx and CMA CGM will enter into multi-year commercial agreements covering air and ocean freight services, with phased implementation through 2028.
Under these arrangements, CMA CGM will become a preferred ocean carrier for FedEx under a non-exclusive agreement, while both parties will collaborate on select air cargo capacity solutions to improve aircraft utilization and long-haul flexibility. CMA CGM Group Chairman and CEO Rodolphe Saadé affirmed the U.S. commitment behind the move: “The acquisition and partnership with FedEx represent a major step in the development of Ceva Logistics and our logistics activities in North America,” he said. “We are strengthening our ability to provide customers with integrated supply chain solutions. These deals also reinforce our long-term commitment to investing in the United States and supporting the resilience and efficiency of its supply chain.” In line with this expansion, Patrick Moebel, former president of FedEx Logistics, is set to assume the role of CEO of Ceva Logistics, succeeding Mathieu Friedberg, who oversaw CMA CGM’s $5 billion acquisition of Bolloré Logistics — approved in February 2024.
The transaction positions CMA CGM to compete more directly with established North American contract logistics providers including GYXO, C.H. Robinson, and DHL Supply Chain. It also follows CMA CGM’s $20 billion pledge — announced two months after President Donald Trump took office last year — to invest in U.S. logistics infrastructure, shipbuilding, and supply chain upgrades over the next four years.
Source: wwd.com
Compiled from international media by the SCI.AI editorial team.
