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

European sovereign debt issues, a tepid U.S. recovery, and a hard landing in emerging markets—among a slew of factors—could provide macroeconomic shocks to the third party logistics (3PL) industry, say leading market analysts. Still, many catalysts are expected to drive merger and acquisition activity over the rest of 2012.

According to PricewaterhouseCoopers (PwC), the transportation and logistics industry continues to be “highly cyclical.” “A continuing theme in the first half of this year has been infrastructure deals, particularly in emerging markets, that reached a historic high in the logistics sector,” says Ken Evans, U.S. transportation and logistics leader at PwC.

In fact, in the first quarter of 2012, the proportion of deal volume involving infrastructure targets leapt to a 12-year high. This “secular trend” toward more infrastructure privatizations and transactions, adds Evans, also drove the relative increase in 3PL “deal value” and volume as a percent of the overall merger and acquisition market during the first quarter.

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 proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

As the calendar turns to September and we approach 2015’s final third, there are, as usual, many things that require our attention from a freight transportation, logistics, and supply chain perspective.

According to Panjiva data, July shipments-at 952,126-were up 1 percent over June, following sequential gains of 7 percent for May over April and 1 percent for June over May.

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA