CMA CGM is nearing a $1.4 billion acquisition of FedEx’s third-party logistics unit, expanding its land-based capabilities amid structural shifts in the $193 billion U.S. parcel industry. The deal comes as UPS grounds MD-11 jets until at least 2026 following a fatal crash linked to fatigue cracks, while reverse logistics fraud — affecting 10% of U.S. returns — costs retailers $76.5 billion annually. UPS also plans to shutter 24 facilities in 2026 to focus on higher-margin services.
CMA CGM nears $1.4 billion deal for FedEx logistics unit, FT reports.
Deal Scope and Strategic Rationale
CMA CGM is set to acquire FedEx’s third-party logistics arm for $1.4 billion. The transaction marks a major expansion of CMA CGM’s land-based logistics capabilities beyond its core ocean shipping business. The unit includes domestic freight forwarding, warehousing, distribution, and value-added services across North America and Europe. report, the deal is expected to close in early 2026, subject to regulatory approvals and customary closing conditions.
U.S. Parcel Industry Context
The broader U.S. parcel industry is valued at nearly $193 billion, long dominated by UPS, FedEx, and the U.S. Postal Service. However, Amazon’s investments in new fulfillment centers and delivery stations have gradually cemented the online giant’s position as a key player in that market. This shift has pressured traditional carriers to restructure operations — including FedEx’s strategic decision to divest non-core logistics assets.
Operational Disruptions and Capacity Shifts
A recent grounding of MD-11 cargo jets — following a fiery crash this month — is unlikely to end before 2026, source cited by Reuters. That disruption coincides with peak delivery season and is driving industry demand for alternative air cargo capacity. Separately, the National Transportation Safety Board confirmed on Thursday it found evidence of fatigue cracks in a key part of the UPS MD-11 cargo jet that crashed in Kentucky this month, an important clue into the cause of the incident that killed 14 people.
Reverse Logistics and Fraud Trends
Nearly one in every 10 retail items returned for a refund in the U.S. is fraudulent, UPS-owned reverse logistics company. That fraud represents a $76.5 billion problem for U.S. retailers — a challenge the company says it plans to combat using artificial intelligence. Meanwhile, United Parcel Service will shut another 24 facilities in 2026 as it reduces deliveries for Amazon.com in an ongoing shift toward more profitable business lines.
Source: Reuters
Compiled from international media by the SCI.AI editorial team.
