📊 EU approves acquisition of Bollore logistics by CMA CGM, subject to conditions

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EU clears acquisition of Bollore logistics by CMA CGM, subject to conditions The European Commission has approved the acquisition of Bolloré Logistics by the shipping group CMA CGM, subject to certain conditions.

• The decision is conditional upon full compliance with commitments offered by the parties to address competition concerns, particularly in the markets for the provision of sea freight forwarding services in Martinique, Guadeloupe, and French Guiana.

• To alleviate these concerns, CMA CGM and Bolloré Logistics agreed to divest all of Bolloré Logistics' activities in the aforementioned markets, as well as several assets in metropolitan France linked to these activities.

• This acquisition is part of CMA CGM's strategy to expand its logistics services and reduce its reliance on container shipping, which has faced a volatile market.

• The €4.65B ($5B) deal is the largest M&A transaction for CMA CGM since it acquired Ceva Logistics in 2019. (link)

FedEx invests $350M to boost global trade and strengthen operations FedEx Express, a subsidiary of FedEx Corp., has made a strategic investment of $350M to establish a new regional hub at Dubai World Central (DWC) Airport in Dubai South.

• This investment aims to expand FedEx's infrastructure and technological capabilities in the Middle East, Indian Subcontinent, and Africa (MEISA) region.

• The state-of-the-art facility was inaugurated by prominent figures, including His Highness Sheikh Ahmed bin Saeed Al Maktoum and FedEx Corporation President and CEO Raj Subramaniam.

• Kami Viswanathan, FedEx Express MEISA President, highlighted that the hub integrates advanced physical infrastructure with digital capabilities, including artificial intelligence, to boost efficiency and provide customers with competitive services that support business growth. (link)

Flexport brings Convoy trucking marketplace back to life Flexport has revived the Convoy trucking marketplace after acquiring its technology stack when the digital trucking brokerage previously shut down.

• The relaunch allows Flexport to provide shippers with access to a full truckload (FTL) marketplace that includes over 400,000 truck drivers and 80,000 carriers.

• Current Flexport customers and legacy Convoy shippers can use the app, which automates the pairing of shipments with carriers, streamlining the process for both parties.

• The Convoy platform will also be opened to all freight brokers in the second quarter.

• Some former Convoy employees have joined Flexport to assist with the platform's relaunch. (link)

Red Sea disruption takes toll on more than half of UK businesses A recent survey by the British Chambers of Commerce (BCC) has revealed that over half of UK businesses, including exporters and manufacturers, are experiencing significant disruptions due to Houthi attacks in the Red Sea.

• The survey, which included responses from 1,000 firms, found that 55% of exporters and 53% of manufacturers and B2C service firms have been affected, with 37% of all businesses reporting some level of impact.

• The disruptions have led to a sharp increase in shipping costs, with some businesses facing a 300% rise in container hire costs.

• Logistical delays have extended delivery times by three to four weeks, causing cash flow difficulties and component shortages on production lines.

• The BCC's head of trade policy, William Bain, has called for government support in the upcoming March Budget, suggesting the establishment of an Exports Council and a review of government funding for export support to help businesses through these challenging times. (link)

How generative AI will enhance the supply chain Generative AI is set to revolutionize the supply chain and procurement sectors by enhancing decision-making, optimizing operations, and fostering innovation.

• However, its success hinges on balancing technological capabilities with ethical considerations and human oversight.

• The logistics sector, in particular, benefits from AI's predictive analytics, enhancing visibility, risk management, and operational efficiency.

• While it offers vast potential for efficiency and innovation, it also introduces risks such as privacy concerns, algorithmic bias, and business continuity challenges.

• Companies are advised to navigate these risks by implementing data anonymization and establishing clear guidelines for AI use. (link)

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