Global Transport & Logistics Sector Snippet
M&A ACTIVITY IN THE TRANSPORT AND LOGISTICS SECTOR
Overall the transportation and logistics sector has experienced an increase in deal volume over the past two years, with only one sub-sector (rail) experiencing a decline.
Shipping continued to experience high activity over the whole deal spectrum, while logistics deals gravitated to the middle and lower market. Passenger ground resurfaced and significantly contributed to a number of large deals.
Continued consolidation pressure and growth in participation from financial investors lead to high competition for assets between strategic and financial buyers.
The Asia Pacific and Europe regions are expected to continue to drive M&A volume.
- Complex and global supply chains are leading many companies to outsource their logistics operations to 3PL providers as they try to simplify their supply chain and focus on their core business.
- Low-cost, cloud-based software provides carriers with robust technology solutions that enable integration within shippers’ supply chains.
- The growth in e-commerce is driving an increase in B2C shipments.
- Although large players like Amazon, who have internal warehousing operations, will continue to pose a competitive challenge to the industry, increased sales by businesses without brick-and-mortar facilities are anticipated to significantly boost demand for third-party warehousing.
- Economic strength and overall global economic growth have increased consumer spending, which boosts demand for industry services and increases freight costs.
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