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Several supply chain developments came into focus last month, including new issues, ongoing concerns and other problems that appeared to be moving toward resolution. They included renewed concern over the Strait of Hormuz closure and ceasefire, CMA CGM’s planned acquisition of FedEx Supply Chain, a sensitive supplier data leak and new strain in the memory chip market as AI infrastructure demand grows.
Throughout June, geopolitical events, technology investment, trade policy and M&A activity continued to influence freight, commodities, capacity, sourcing and cost planning. Here’s a look at what supply chain and procurement teams are watching right now.
Supply Chain Disruption Continues
The ceasefire signed in June may have eased some of the immediate worry around the Strait of Hormuz, but it didn’t erase the supply chain risk. The waterway, which carries about one-fifth of the world’s oil and gas supplies, remained a core concern for companies that rely on it for fuel, petrochemicals, fertilizer inputs and shipping access.
According to Breakbulk News, disruption to shipping through the waterway exposed “structural weaknesses” across global supply chains. That disruption has highlighted how closely interconnected global logistics networks remain despite years of supply chain diversification following the global pandemic.
As inventories decline and companies begin rebuilding stockpiles, it says global logistics networks face renewed pressure from higher transport costs, constrained capacity and longer lead times.
“…even if commercial shipping through the Strait gradually returns to normal, supply chains are unlikely to revert to their previous operating models,” Breakbulk News reports. “Instead, businesses are expected to increase spending on inventory, supplier diversification, strategic stockholding and transport risk management, shifting investment away from productivity and growth initiatives.”
CMA CGM Makes North American Logistics Play
This news carried over into July, but it was too important for the logistics sector to hold for another month. On July 1, CMA CGM Group announced that it was acquiring FedEx Supply Chain for $1.4 billion. This effectively removes FedEx from the third-party contract logistics business it entered in 2015, when it acquired GENCO, one of North America’s largest third-party logistics providers.
The acquisition is expected to close this year and will nearly triple the size of the North American contract logistics operations of CEVA Logistics, a subsidiary of the CMA CGM Group.
By integrating FedEx Supply Chain’s assets and nearly 10,000 team members, CEVA Logistics will become a leading contract logistics provider in North America, the company states in a press release. The combined entity would operate approximately 150 warehouses, expanding CEVA’s overall presence in North America to a combined workforce of 20,000 people across more than 240 locations.
“By streamlining our portfolio, FedEx is better positioned to execute our long-term vision and continue to serve as the heartbeat of the industrial economy, delivering unmatched connectivity, reliability, and value to our customers globally,” said Raj Subramaniam, president and CEO of FedEx.
CBP Opens Phase 2 IEEPA Refund Portal
Tariffs were also a hot topic in June, but not for the usual reasons. This time, U.S. Customs and Border Protection (CBP) confirmed that Phase 2 of the process for refunding duties paid by importers of record under the International Emergency Economic Powers Act (IEEPA) would be open for business on June 29th.
According to MSN, the portal is for businesses that want to claim their part of $166 billion in tariff refunds, with payments expected within 90 days. It says more than 3,000 companies—including FedEx, Costco, Skechers, Toyota and Nintendo of America—have sued for refunds.
“While some CEOs see the refunds as meaningful, they remain cautious amid ongoing trade policy shifts,” MSN adds. “High portal traffic caused some technical issues, but many applicants managed quick submissions.”
In Other News
Also in June, a leak of confidential data belonging to the Indian manufacturer Tata Electronics exposed strategic Apple and Tesla information on the dark web. Digitalshield says the compromised files included detailed supplier lists, names of essential components and photographs of the upcoming iPhone 18 Pro model.
“In total, at least six specific files have been identified that directly associate hundreds of pieces of the new [iPhone] with their respective subcontracted manufacturers,” Digitalshield reports. “The leak covers technical specifications of the integrated circuits of the motherboard, as well as elements of the battery and camera systems.”
Apple made headlines again in June when it bumped up the price of some of its most popular products. The company blamed the increase on higher chip prices as data centers and other super users consume much of the world’s memory chip supply.
Welcome to “RAM-ageddon,” Fortune warns, “the theatrically named phenomenon caused by a severe shortage of computer memory chips.” It says Apple is the latest of a string of PC and gadget makers who have hiked prices in recent months to make up for the rising cost of RAM and NAND memory.
“The reason for the price hikes is no secret to anyone who’s been paying attention,” Fortune adds. “It’s all about AI, specifically the unprecedented industry-wide build out of the data centers that power AI services like OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Gemini.”
