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CMA CGM completes $1.4bn FedEx Supply Chain takeover

CMA CGM announced today that it has completed its $1.4bn takeover of FedEx's contract logistics business, FedEx Supply Chain, which is set to be folded into the shipping line's contract logistics arm Ceva. The deal will see Ceva's North American footprint almost treble in size, according to CMA CGM, with the addition of around 34m sqft of warehouse space offering combined operations across 150 warehouses in region and employing around 20,000 staff. "The completion of this acquisition marks an important step in the development of CMA CGM and CEVA Logistics in North America," Rodolphe Saadé, chairman and chief executive of the CMA CGM group, said. "By significantly expanding our contract logistics capabilities, we are strengthening our ability to offer customers integrated, end-to-end supply chain solutions across ocean, air, land and logistics. "It also reinforces CMA CGM's long-term commitment to investing in the United States, a strategic growth market for the group, and supporting the resilience and efficiency of its supply chain," he added. The deal is central to Mr Saadé's strategy of expanding CMA CGM's less-cyclical logistics activities. Earlier this month, he said the group would continue to grow "organically in container shipping, while focusing acquisitions on logistics". An additional clause in the deal also sees FedEx "enter into multi-year commercial agreements" with CMA CGM's ocean freight operations and CMA CGM Air Cargo. "CMA CGM will become a preferred ocean carrier for FedEx, offering transport and carrier services under a non-exclusive agreement," a CMA CGM statement said. "The two companies also plan to collaborate on an air cargo capacity agreement on key strategic routes, including Asia-Europe. "This will strengthen their respective global networks, improving aircraft utilisation and providing greater flexibility on long-haul routes," it added. Under the proposed air cargo agreements, Ceva Logistics could gain access to FedEx's wider capacity network, potentially including space bought from third-party airlines alongside its own freighters. While neither company has yet to clarify the arrangements, such access could help CMA CGM expand its air freight offering without acquiring scarce freighter aircraft. The potential cooperation highlights how control of capacity and customer relationships can create competitive advantage, allowing integrators and forwarders to buy airline space cheaply and sell it as part of a higher-value, end-to-end service.

Air cargo demand up globally in August as yields rebound

Air cargo demand rose across all regions in August, while yields also rose month on month for the first time since April. Total demand, measured in cargo tonne-kilometers (CTK), increased by 4.4% compared to August 2025. Capacity, measured in available cargo tonne-kilometers (ACTK), decreased by 0.1% compared to August 2025. "Air cargo demand rose 4.4% year-on-year in August with all regions reporting growth even as capacity was trimmed by 0.1%," said Marie Owens Thomsen, IATA's senior vice president sustainability and chief economist. "Strong demand and higher load factors helped airlines to recoup some of the exceptionally high fuel costs. Yields rose month-on-month for the first time since April, while global goods trade growth continues. Both are positive signs as the year-end peak season comes into view." The operating environment was equally strong, although jet fuel prices were up. Global trade increased by 6.0% year-on-year in July, extending the run of consecutive monthly expansions to 33 months, on a year-on-year basis. Global manufacturing activity increased in August. The Global Manufacturing Output Purchasing Managers' Index (PMI) increased 0.3 points to 53.0, while the New Export Orders Index rose 1.4 points to 51.4. Both indicators remained supportive of air cargo demand. However, jet fuel prices rose by 8.3% month-on-month in August and were 79.2% higher than a year earlier. North American carriers saw a 6.6% year on year increase in air cargo demand in August, the strongest performance of all regions. Capacity decreased by 2.5% year on year. Latin American and Caribbean carriers also did exceptionally well, with a 5.1% demand increase and 3.3% increase in capacity. With less growth but still performing well, Asia-Pacific airlines achieved a 4.3% demand growth with 1.2% capacity increase. European carriers had a 4.1% demand increase, but capacity decreased by 3.5%. African airlines saw a 3% demand increase and capacity increased by 14%. Middle Eastern carriers saw a 1% increase in demand, the weakest of all regions, while capacity increased by 3.3%. Air cargo performance diverged across major trade lanes in August. Asia-North America recorded the strongest growth, followed by within Asia, Europe-North America, and Europe-Asia. In contrast, Gulf-linked corridors remained disrupted by the conflict in the Middle East.

A resilient consumer meets Kuehne's capacity bet - what to make of it

Where we stand: US retail spending has held up into peak season, but US import demand appears to be holding rather than accelerating. In recent London meetings described in a 24 September JP Morgan note, Kuehne + Nagel (K+N) set out a more constructive view of its earnings mix: AI-related air cargo, Chinese brands expanding internationally, a plan to restore European Road profitability and productivity gains from a more standardised technology platform. US consumers are still spending despite higher ...