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FedEx sells supply chain unit to CMA CGM for $1.4B
FreightWaves • • general
Key Points:
- FedEx has signed a memorandum of understanding with China Southern Airlines to collaborate on air cargo transportation, with air cargo and ocean freight agreements set to begin in phases through 2028.
- Following the spin-off of FedEx Freight on June 1, FedEx is shifting its focus to freight transportation and parcel delivery services, while FedEx Supply Chain, which accounts for less than 2% of annual revenue, will be streamlined.
- FedEx Supply Chain, created through the 2015 acquisition of Genco Logistics, employs around 10,000 people across 80 facilities and offers integrated logistics services including warehousing, fulfillment, and product refurbishment.
- CMA CGM’s acquisition and partnership with FedEx aim to enhance its North American logistics capabilities, with plans to invest in expanding warehouse and logistics operations in the U.S. starting in March 2025.
- The transaction is pending routine regulatory approvals and aligns with CMA CGM’s broader strategy to strengthen supply chain resilience and efficiency in the United States.
