France-based container shipping and logistics giant CMA CGM Group has agreed to acquire FedEx Supply Chain, the contract logistics arm of FedEx Corp., for $1.4 billion in enterprise value, according to a joint announcement on Wednesday. The transaction, expected to close later this year subject to regulatory approvals, would nearly triple the size of CEVA Logistics' North American contract logistics operations.
Deal structure and strategic rationale
The acquisition expands CMA CGM's one-stop-shop logistics strategy, which already includes its own all-cargo airline and ocean shipping. The combined entity will operate about 150 warehouses and expand CEVA's overall presence in North America to more than 240 locations with a combined workforce of 20,000 people, the companies said.
| Metric | FedEx Supply Chain (pre-acquisition) | Combined CEVA + FedEx SC (post-acquisition) |
|---|---|---|
| Employees | 11,500 (as of May 31, 2025) | ~20,000 |
| Facilities | ~150 | ~150 (plus CEVA's existing facilities; combined >240 locations) |
FedEx Supply Chain had about 11,500 employees at nearly 150 facilities as of May 31, 2025, according to FedEx's latest annual report. The division provides integrated logistics services for retailers and manufacturers, including inbound logistics, warehousing and distribution, fulfillment, contract packaging, product configuration, systems integration, returns processing, and test/repair/refurbishment.
Air and ocean freight agreements
Upon closing, CMA CGM and FedEx will enter into multi-year commercial agreements covering air and ocean freight. CMA CGM will become a preferred ocean carrier for FedEx under a non-exclusive agreement. The companies will also collaborate on select air cargo capacity solutions to enhance their respective global networks, increase aircraft utilization, and provide more flexible shipping options. These agreements are expected to commence in phases between now and 2028.
FedEx recently signed a memorandum of understanding with China Southern Airlines to collaborate on air cargo transportation, indicating a broader strategy to expand air freight partnerships.
Focus for FedEx and executive commentary
FedEx Supply Chain is a relatively small part of FedEx Corp., which will now focus on its freight transportation and parcel delivery services. This news follows FedEx's spin-off of FedEx Freight, its less-than-truckload business, on June 1.
"Today’s announcement enables FedEx to further increase our focus on providing our unique expertise for high-value verticals, including healthcare, automotive, aerospace and data centers," said CEO Raj Subramaniam in a news release. "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."
Rodolphe Saadé, chairman and CEO of CMA CGM, said: "The acquisition and partnership with FedEx represent a major step in the development of Ceva Logistics and our logistics activities in North America. 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."
Implications for shippers and logistics operators
For freight forwarders and logistics managers, the deal signals further consolidation in contract logistics and the growing integration of ocean carriers into end-to-end supply chain services. The expanded CEVA network—combined with CMA CGM's ocean and air capacity—creates a more formidable competitor for traditional 3PLs. Shippers using FedEx Supply Chain may see new service options tied to CMA CGM's ocean and air networks, while CEVA customers gain access to FedEx's warehousing infrastructure.
The transaction is subject to routine regulatory approvals and is expected to close later this year.
Sources:
