Subscribe to our free, weekly email newsletter!


Top 50 3PLs: Will mergers and acquisitions alter the third party logistics landscape?

A flurry of major service provider deals captured mainstream headlines in recent months, but the consequence of this activity has yet to be measured by domestic and international shippers. Meanwhile, the EU flounders, Asia remains strong, and emerging nations may represent the next great opportunity for the major 3PL players.
By Patrick Burnson, Executive Editor
June 01, 2012
image

“Overall, logistics deal activity seems more likely to rise than fall given continued global economic expansion and the secular trend of rising infrastructure concessions,” says Evans.

For 3PLs, adds Evans, consolidation will be an ongoing given, as more pure-play domestic companies seek to expand globally. “I can assure you that even the 3PLs found only on ‘domestic’ listings will at some point be hauling or arranging to haul freight globally,” he says. “For those bigger companies seeking to expand worldwide, mergers and acquisitions can be an attractive way to proceed.”

If one needed any more evidence of this phenomenon, consider the merger and acquisition activity of just a few months ago. UPS not only made a celebrated purchase of TNT Express, but went on to buy Italian pharmaceutical logistics company Pieffe. Geodis, meanwhile, acquired French pharmaceutical logistics and distribution company Pharmalog.

Then in a move to broaden its own pharmaceuticals footprint, DHL Global Forwarding acquired Lufthansa’s 50 percent ownership in its joint venture company LifeConEx, a cold chain management provider in the life sciences industry.

In the Asia Pacific region, merger and acquisition activity was just as intense. Kerry Logistics acquired Trustspeed Medicine Logistics in Taiwan, and it also established a joint venture with Mosskito Logistics in Australia to expand its cold chain distribution segment.

Meanwhile, data from Armstrong & Associates—the third party logistics consultancy that compiles our annual top rankings of global and domestic 3PLs—shows that all of this global merger and acquisition activity certainly makes sound, business sense. In fact, Armstrong reports that total global 3PL gross revenue in 2011 at $133.8 billion was up 5.2 percent over 2010. Furthermore, net revenues, at an estimated $61 billion, posted a 5.9 percent annual gain.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Department of Commerce reported that January retail sales were up 0.2 percent compared to December and up 3.7 percent annually at $449.9 billion, and the NRF reported that January retail sales, which exclude automobiles, gas stations, and restaurants, rose 0.6 percent over December and 1.4 percent compared to January 2015.

On the freight shipments side, Cass reported that January shipments––at 1.025––trailed December by 1.3 percent and January 2016 by 0.2 percent. These declines were less than the 4.9 percent drop from November to December, though, and January shipments still topped the 1.0 mark for the 65th straight month in December.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) saw a 0.4 percent decline from November to December, its second straight decline on the heels of a 1.0 percent decrease from October to November.

Carloads saw a 11.7 percent annual decline at 241,680, and intermodal containers and trailers rose 10.5 percent to 262,830

An amendment to the International Maritime Organization’s Safety of Life at Sea convention will go into effect requiring all shippers (importers and exporters) to certify and submit the Verified Gross Mass – the combined weight of the cargo and the container – to the steamship line and terminal operator in advance of loading the container aboard a vessel.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA