FedEx sells supply chain unit to CMA CGM for $1.4B

FedEx Corp. has agreed to sell its contract logistics arm, FedEx Supply Chain, to CMA CGM Group for $1.4 billion in enterprise value. The deal is expected to nearly triple the North American contract logistics operations of CMA CGM’s subsidiary, Ceva Logistics, while allowing FedEx to refocus on its core parcel and freight delivery segments. This strategic realignment includes long-term commercial agreements for ocean and air freight, signaling a deeper partnership between the two global logistics leaders.

The $1.4 billion acquisition of FedEx Supply Chain by CMA CGM Group is expected to close later this year, significantly expanding the reach of CMA CGM’s subsidiary, Ceva Logistics. FedEx Supply Chain currently manages approximately 34 million square feet of space across 80 facilities for 130 customers, employing 10,000 people. Upon completion, Ceva Logistics will operate roughly 150 warehouses in North America with a combined workforce of 20,000 people across more than 240 locations. This move aligns with CMA CGM Chairman and CEO Rodolphe Saadé’s strategy to build an end-to-end logistics provider encompassing ocean shipping, an all-cargo airline, and extensive warehousing capabilities.

For FedEx, the divestiture represents a strategic shift to streamline its portfolio and focus on high-value verticals such as healthcare, automotive, aerospace, and data centers. CEO Raj Subramaniam noted that the sale allows the company to concentrate on its freight transportation and parcel delivery services, following the recent spin-off of its less-than-truckload business, FedEx Freight. FedEx Supply Chain, which was formed through the 2015 acquisition of Genco Logistics, accounted for less than 2% of FedEx’s consolidated annual revenue. The unit provides a wide range of services including fulfillment, returns processing, and product refurbishment for various retailers and manufacturers.

Beyond the asset transfer, the deal establishes a multi-year commercial framework where CMA CGM will serve as a preferred ocean carrier for FedEx under a non-exclusive agreement. The two logistics giants also plan to collaborate on air cargo capacity solutions to improve aircraft utilization and expand global network flexibility. These agreements are slated to roll out in phases between now and 2028. This partnership follows a similar memorandum of understanding FedEx signed with China Southern Airlines, further illustrating FedEx’s transition toward collaborative transportation models while CMA CGM deepens its investment in the U.S. supply chain infrastructure.