FedEx sells supply chain unit to CMA CGM for $1.4B, nearly tripling CEVA's North American footprint

FedEx has agreed to sell its contract logistics division to CMA CGM for $1.4 billion in enterprise value, the companies announced Wednesday, marking the second major divestiture by the Memphis-based carrier in as many months.

The deal, which is expected to close before the end of 2026, would nearly triple the North American contract logistics operations of CEVA Logistics, the third-party logistics subsidiary CMA CGM has been building into a global provider, according to FreightWaves. The combined entity would run roughly 150 warehouses across a workforce of about 20,000 people at more than 240 locations, per the official announcement.

A calculated narrowing of FedEx's portfolio

FedEx Supply Chain, which was formed through FedEx's 2015 acquisition of Genco Logistics, employs roughly 10,000 people across 80 facilities and manages around 34 million square feet of space for 130 customers, according to FreightWaves. Services span warehousing, fulfillment, contract packaging, returns processing, test and repair, and product liquidation. Despite that scope, the unit accounts for less than 2% of FedEx's consolidated annual revenue.

The sale follows FedEx's spin-off of FedEx Freight, its less-than-truckload business, which became an independent company on June 1, as reported by FreightWaves. Together, the moves reflect a deliberate effort by CEO Raj Subramaniam to concentrate resources on FedEx's core parcel and freight transportation business. In the deal announcement, Subramaniam pointed to high-value verticals, including healthcare, automotive, aerospace and data centers, as areas where FedEx intends to deepen its focus.

CMA CGM's US expansion strategy takes shape

For CMA CGM, the acquisition is the latest chapter in a decade-long push to evolve beyond container shipping into a fully integrated logistics operation. The Marseille-based company, the world's third-largest container line, has moved into air freight and is privately held, which gives its leadership significant flexibility to pursue deals. According to the Financial Times, CMA CGM chief executive Rodolphe Saadé pledged in an Oval Office meeting with President Donald Trump to invest $20 billion in the United States over four years, and this acquisition is a concrete step toward that commitment.

Saadé had signaled the strategic direction publicly before the deal materialized. FreightWaves reported that in March 2025 he outlined plans to build up warehouse and logistics reach in the U.S., a statement made in the context of broader tensions around shipping market access at the time.

CEVA Logistics, which Armstrong & Associates ranks as the fifth-largest global third-party logistics provider by gross revenue and seventh-largest warehouse operator by square footage, per FreightWaves, gains a significant operational base in one move. North America is one of the most competitive contract logistics markets, and the combined warehouse network gives CEVA considerably more density and scale to compete for large shipper contracts.

Commercial partnerships extend beyond the transaction

The deal carries implications beyond the $1.4 billion price tag. Once the acquisition closes, FedEx and CMA CGM plan to enter into multi-year commercial agreements on both ocean freight and air cargo capacity, according to Supply Chain Dive. Under those terms, CMA CGM would become a preferred, non-exclusive ocean carrier for FedEx. The two companies also plan to collaborate on select air cargo capacity solutions designed to improve aircraft utilization and expand shipping options for their respective customers.

FreightWaves reported that the air cargo and ocean freight agreements are expected to roll out in phases through 2028. The arrangement connects neatly with FedEx's broader air cargo ambitions: the company recently signed a memorandum of understanding with China Southern Airlines to explore cargo cooperation, adding another dimension to its international freight strategy.

The transaction remains subject to routine regulatory approvals. If cleared on schedule, the deal would be fully integrated into CEVA's North American operations before the end of the year, reshaping the competitive dynamics of contract logistics across the continent.