CMA CGM Completes $1.4bn FedEx Supply Chain Deal

CMA CGM Group has completed its $1.4 billion acquisition of FedEx Supply Chain, significantly expanding CEVA Logistics’ contract logistics operations across North America.

The transaction adds around 34 million sq ft of warehouse space and nearly 10,000 employees to CEVA’s network, almost tripling its North American contract logistics footprint.

The combined business now operates around 150 warehouses, taking CEVA’s overall presence in North America to more than 240 locations and approximately 20,000 employees.

The acquisition strengthens CEVA’s capabilities across healthcare, technology, consumer and retail logistics, while also supporting wider deployment of automation and robotics throughout the network.

Alongside the transaction, CMA CGM and FedEx have entered into multi-year commercial agreements covering ocean and air freight.

CMA CGM will become a preferred ocean carrier for FedEx under a non-exclusive agreement, while the companies also plan to cooperate on air cargo capacity across strategic routes, including Asia-Europe.

“By significantly expanding our contract logistics capabilities, we are strengthening our ability to offer customers integrated, end-to-end supply chain solutions across ocean, air, land and logistics,” said Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM Group.

The deal forms part of CMA CGM’s wider strategy to build an integrated logistics platform spanning ocean shipping, terminals, inland transport, warehousing and value-added services, while reinforcing its investment in the US market.