CMA CGM Archives - International Finance

CMA CGM to buy FedEx Supply Chain for USD 1.4 billion, tripling Its US warehousing reach

International Finance Business Desk — Tue, 21 Jul 2026 01:00:18 +0000

CMA CGM, the French shipping and logistics group, has agreed to buy FedEx’s contract logistics arm, FedEx Supply Chain, in a deal worth USD 1.4 billion. The agreement, announced jointly by both companies on 1 July, is expected to close sometime in 2026 once regulators sign off.

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.”

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French shipping leader CMA CGM penetrates into the logistics sector

International Finance Desk — Tue, 24 Apr 2018 07:45:40 +0000

French shipping giant CMA CGM is soon going to enter the logistics sector by investing US$462mn to acquire a major stake in CEVA logistics, reported Greek daily Naftemporiki.

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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Total and CMA CGM makes strategic agreement on LNG supply for new build container ships

International Finance Desk — Tue, 05 Dec 2017 12:29:27 +0000

Total and CMA CGM have signed an agreement covering the supply of around 300,000 tons of liquefied natural gas (LNG) a year for 10 years starting in 2020. This unprecedented volume in the history of LNG bunker will fuel CMA CGM’s nine new build container ships, scheduled for delivery beginning 2020 onwards.

CMA CGM, the first shipping company in the world to equip its giant container ships (capacity of 22,000 TEUs¹) with LNG propulsion, has selected Total Marine Fuels Global Solutions, the Total affiliate responsible for marketing marine fuels worldwide, for these future supply operations. In February 2017, CMA CGM and Total already signed a cooperation agreement to examine the most environmentally responsible propulsion solutions to meet the International Maritime Organization’s 2020 implementation date for new sulfur regulations.

By selecting LNG as a fuel today, CMA CGM is opting for a solution that will outperform the sulfur cap of 0.5% required in 2020.

“LNG is the fuel of the future for shipping,” commented Rodolphe Saadé, Chairman and Chief Executive Officer of CMA CGM. “With this groundbreaking decision by the CMA CGM Group, the entire maritime industry will benefit from the new supply chains that will be created. CMA CGM is pursuing its expansion through a combination of growth, profitability and environmental responsibility. By combining the expertise of two French companies, each one leader in its field, we are consolidating France’s prominent role for a more sustainable transportation and in favor of the energy transition.”

“CMA CGM’s decision to adopt LNG propulsion for its new build container ships sends a strong signal to the maritime world.” stated Patrick Pouyanné, Chairman and Chief Executive Officer of Total. “The wider use of LNG as a fuel is an important component of Total’s LNG strategy, and we are delighted to support CMA CGM as it implements this ambitious project. This agreement highlights our involvement in developing dedicated supply chains for this new fuel. We are once again demonstrating our ability to provide customized energy solutions to our customers.”

Under this agreement, Total will provide a tailor-made solution for LNG supply. The Group is currently considering chartering on long-term basis a LNG bunkering vessel that would not only deliver fuel to CMA CGM in Europe, but also to other customers in the same region. The new supply chains created would lead to a wider use of LNG, especially in other shipping sectors, to achieve even greater and ambitious environmental responsibility.

Committed for many years to reducing its energy footprint to protect the environment, oceans and biodiversity, CMA CGM has already reduced its carbon emissions per container transported per kilometer by 50% between 2005 and 2015. It has now introduced a far-reaching plan for a further 30% reduction by 2025.

In addition, both companies reached an agreement in principle on the potential supply of lubricants for the nine newbuilds, giving CMA CGM access to Total Lubmarine’s innovative products, technical expertise and global distribution network. .

LNG fuel, a solution that meets the shipping industry’s new regulatory and environmental requirements

CMA CGM’s decision is fully aligned with the Paris Agreement and the talks currently under way at the international level. LNG offers a range of environmental advantages, including a 99% reduction in sulfur oxide (SOx) and fine particulate matter emissions. It also substantially reduces nitrogen oxide (NOx) emissions and significantly decreases carbon emissions. LNG will play a growing role in the energy mix of the shipping world.

[1] Twenty-foot Equivalent Unit: Unit used to measure a container ship’s cargo carrying capacity.

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