Deutsche Bahn supervisory board approves DSV bid for DB Schenker
Deutsche Bahn’s supervisory board, in an extraordinary meeting, has approved the sale of DB Schenker ...
AMZN: WIZARD OF OZR: CAPITAL DEPLOYMENTBA: CRISIS DEEPENSGXO: UPSIDEJBHT: EARNINGS SEASON KICK-OFFAMZN: EUROPEAN REVERSE LOGISTICS GXO: NEW HIGHSCHRW: CATCHING UPBA: TROUBLE DHL: GREEN GOALVW: NEGATIVE OUTLOOKSTLA: MANAGEMENT SHAKE-UPTSLA: NOT ENOUGHBA: NEW LOW AS TENSION BUILDSGXO: SURGING
AMZN: WIZARD OF OZR: CAPITAL DEPLOYMENTBA: CRISIS DEEPENSGXO: UPSIDEJBHT: EARNINGS SEASON KICK-OFFAMZN: EUROPEAN REVERSE LOGISTICS GXO: NEW HIGHSCHRW: CATCHING UPBA: TROUBLE DHL: GREEN GOALVW: NEGATIVE OUTLOOKSTLA: MANAGEMENT SHAKE-UPTSLA: NOT ENOUGHBA: NEW LOW AS TENSION BUILDSGXO: SURGING
“2024 will be the year of consolidation”, according to forwarders – but it looks to have begun already.
Today marks yet another M&A deal in the small to mid-size forwarding market: Rhenus Logistics’s Italian operation has acquired Pesenti Trasporti & Logistica, which has its own fleet of vehicles.
“Maintaining the strong origins and values that have been driving forces of our company are fundamental for us and have been the reason why we have assessed that Rhenus Logistics could, also as a new shareholder, be a guarantor and give further impetus to the dynamic environment that distinguishes our company,” says Benedetto Pesenti, CEO of Pesenti Trasporti & Logistica.
The news follows at least five other M&A deals this month alone, including by AIT Worldwide Logistics, Elanders and Savino Del Bene. And while everyone is watching what happens among the ultra-large forwarders (DB Schenker springs to mind), in fact the market is already moving rapidly in the SME sector.
“SME forwarders are in a very good mood at the moment,” said Christos Spyrou, founder of Neutral Air Partner, “because they all made money during Covid.
“But the market is not good now. They are seeing consolidation among the big boys, which is an opportunity for SMEs, and small investors probably see opportunity too.”
Mr Spyrou pointed out that nearly half global airfreight volume was handled by small and mid-sized forwarders and added that consolidation among large forwarders was not necessarily welcomed by other stakeholders – particularly air carriers.
“Carriers want to diversify their customer base. No one wants to have only two or three clients, they want 20, or 40.”
He added that consolidation among large forwarders also provided opportunities for SMEs and said: “[During the integration] service can become an issue. Freight forwarding is a people business.
“I think the picture is bright.”
Another mid-sized independent forwarder added: “SME companies that did well have their war chests, and they haven’t had to give it to shareholders. There will be consolidation – SMEs are looking at selling as their valuations are good, based on the past three years, so they can maximise their returns.
“We are looking at acquisitions now.”
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