CMA CGM and FedEx Supply Chain: The Deal Behind the Deal

"FedEx is not simply selling an asset, it is trading a warehousing unit for a deeper transportation relationship with one of the world's largest container lines, which is a smarter reallocation than a straight divestiture." — Bruno Digital

FedEx just sold its Supply Chain unit to CMA CGM for $1.4 billion. It sold for the same price FedEx paid for the same business, under a different name, back in 2015. 

But FedEx didn't just sell an operating unit. They also entered into a larger agreement for ocean and air cargo that highlights some interesting trends in global logistics.

In this episode of the Art of Supply podcast, Kelly Barner covers:

- What the $1.4 Billion deal includes, and the multi-year ocean and air cargo agreements worth an estimated $3.5 Billion that are riding along with it

- Why U.S. law would make it impossible for CMA CGM to ever buy FedEx outright

- Whether CMA CGM's growing air cargo fleet is competition for FedEx, or something else entirely

Links:

Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/

Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193 

Art of Supply on AOP: http://www.artofsupply.com 

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