CMA CGM is buying FedEx Supply Chain, FedEx’s warehousing and returns business, for $1.4 billion. The ocean carrier will fold it into its logistics arm, CEVA.
FedEx Supply Chain handles warehousing, order fulfillment and returns for other companies. Once the deal closes, expected in 2026, those customers will be served by a unit of an ocean carrier.
What it is: FedEx Supply Chain is a third-party logistics provider, meaning it runs supply chain operations for customers rather than moving FedEx’s own parcels. It grew out of FedEx’s 2015 GENCO acquisition and accounts for less than 2% of FedEx’s revenue.
What changes for shippers: Those customers will move into CEVA. The combined business will operate about 150 warehouses and employ 20,000 staff across more than 240 North American sites. Nearly 10,000 FedEx Supply Chain staff will transfer. CMA CGM will also become a preferred ocean carrier for FedEx.
The pattern: CMA CGM has expanded into landside logistics before. Other ocean carriers have followed a similar strategy.
CMA CGM’s $3 billion purchase of Ingram Micro's logistics arm in 2021
Maersk’s $3.6 billion purchase of LF Logistics
DSV’s €14.3 billion purchase of DB Schenker
This week, MSC’s terminal arm bought a 49% stake in India’s Vizhinjam port for about $1.4 billion.
What's next: This is FedEx’s second divestiture in weeks, after it spun off its FedEx Freight trucking business. CEO Raj Subramaniam said the company is focusing on “high-value verticals” such as healthcare, automotive, aerospace and data centers.
