The purchase is a big deal for CMA CGM’s subsidiary CEVA Logistics, which handles warehousing, distribution and order fulfilment for businesses across North America. Folding in FedEx Supply Chain’s operations and its roughly 10,000 staff would nearly triple CEVA’s contract logistics business on the continent. Once merged, the combined operation would run about 150 warehouses and employ close to 20,000 people across more than 240 sites, stretching from healthcare and retail clients to automotive and industrial goods firms.

For FedEx, selling off this unit is about doing less, not more. The company built up its supply chain business over a decade, first buying it in 2015 (when it was known as Genco) for the very same USD 1.4 billion price tag it is now selling for. This deal also follows FedEx spinning off its less-than-truckload freight business in June, part of a broader effort to slim down. FedEx’s leadership has signalled it wants to concentrate on what it calls high value verticals, essentially its core parcel, express and freight delivery networks, rather than running warehouses on behalf of other businesses. Offloading the supply chain arm lets FedEx sharpen that focus while still keeping a commercial foothold in the space through new agreements with CMA CGM.

That is where the second part of the announcement comes in. Alongside the sale, the two companies plan to sign multi-year agreements covering ocean and air freight, expected to roll out in phases between 2026 and 2028. CMA CGM will become a preferred, though non-exclusive, ocean carrier for FedEx’s cargo, while the pair will also cooperate on air cargo capacity to make better use of aircraft space on long-haul routes. In effect, FedEx is trading a warehousing business for a deeper shipping relationship with one of the world’s largest container carriers.

The timing fits a broader pattern. CMA CGM pledged in early 2025 to pour USD 20 billion into US warehousing, air cargo and wider logistics infrastructure over four years, part of a push to build an end-to-end network that spans ships, ports, warehouses and last-mile delivery rather than just ocean freight. The FedEx deal, alongside other recent acquisitions this year including distribution firm Fattal Group and aircraft maintenance provider Crystal Aero Solutions, shows the group moving quickly to build out that ambition on US soil.

For an industry still adjusting to disrupted trade routes, from the Panama Canal’s renewed draft restrictions amid a fresh El Nino outlook to the severe disruption to shipping through the Strait of Hormuz during the ongoing US-Iran conflict, deals like this highlight how ocean carriers are trying to insulate themselves by controlling more of the supply chain on land. Rather than simply moving containers between ports, CMA CGM is positioning itself to manage what happens to goods once they arrive, competing more directly with established logistics players on their home turf.

The transaction still needs regulatory approval before it closes, and both companies say further details on the commercial freight agreements will be worked out in phases once the sale completes.

Rodolphe Saade, Chairman and Chief Executive Officer of the CMA CGM Group, stated, “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.”

Raj Subramaniam, President and CEO of FedEx, added, “The announcement enables FedEx to further increase our focus on providing our unique expertise for high-value verticals, including healthcare, automotive, aerospace and data centers. 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. We look forward to leveraging our complementary relationship with global logistics solutions provider CMA CGM to support the next chapter for FedEx Supply Chain and its team members.”

The post CMA CGM to buy FedEx Supply Chain for USD 1.4 billion, tripling Its US warehousing reach appeared first on International Finance.

The Spare Parts Logistics services include integrated contract logistics solutions covering all aspects of spare parts fulfillment, from planning supply chains and developing warehousing and distribution solutions to inventory management of spare parts and customer service.

One trend in the market is introduction of blockchain in logistics industry. A blockchain is a digitalised, distributed transaction ledger, which involves identical copies being maintained on multiple computer systems controlled by different entities.

According to the report, one driver in the market is increasing demand for spare parts owing to longer lifespan of vehicles. It is observed that the average age of cars has been rising in the EU. The average age of cars in the EU rose by more than 15% from year 2010 to 2016. The average of cars in EU in 2010 was between 8 and 9 years. The average of cars in EU increased to around 11 years in 2016. As the age of the car increases, the need for the spare parts also increases for the car to run smoothly.

The key vendors include CEVA Logistics, DB SChenker, Deutsche Post DHL Group, Kuehne + Nagel and UPS.

The post Europe’s Spare Parts Logistics market report 2018-2022 appeared first on International Finance.

CEVA is a global logistics supply chain company headquartered in Hoofddorp, Netherlands. According to Tornos News, CMA CGM will purchase 25% of the company shares before its listing on a Swiss stock exchange in May.

The logistics sector has shown exponential growth in recent years.  A recent blog by Kenco reads “The supply chain is the backbone of a company: strong, flexible and supporting so many parts of the business. But in many ways, they’re also fragile: too much change or pressure and they’ll fracture, with wide-spread impact throughout the organization. Like all parts of business, new technologies, new processes and new ways of thinking will make them stronger, more efficient and more powerful. There’s both an art and science to how we drive innovation in our supply chains and drive it we must.”

This year’s Eye for Transport Global Logistics Report shows increased e-commerce growth, digitisation and cutting-edge technologies create better opportunities for the industry’s business model. Respondents said blockchain (52.7%), artificial intelligence (51.3%) and robotics (44.61%) largely transform the industry in order to sustain and introduce effective business values.

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