Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today, I would like to talk about, “Maersk acquires large freight forwarder, M&As in the Logistics Sector Continue.”
Daily Logistics Radio by IINO san in 15th Feb. 2022
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M&A by Maersk
On February 9, Maersk announced its intention to acquire Pilot Freight Services in U.S., a large cargo transportation company.
The purchase price is about USD1.68 billion.
Prior to acquisition of Pilot, Maersk acquired warehousing and distribution company Performance Team in the U.S. in 2020, and e-commerce logistics company Visible SCM in 2021.
In this way, Maersk continues to make mergers and acquisitions in the logistics sector.
About Pilot Freight Service
Pilot is a logistics company founded in 1970, with headquarters in Pennsylvania, U.S., and offices in Spain and the Netherlands.
The company operates 87 transportation hubs in North America, managing outside trucking companies and providing pickup and final delivery services.
Shift to E-Commerce in Logistics Sector
With the expansion of the Corona, the shift to E-Commerce is not only proceeding in consumer goods such as household goods, but also in the “industrial sector”.
By acquiring Pilot, which is strong in final delivery of large cargoes, Maersk is trying to strengthen its ability to support customers’ transition to E-Commerce.
Maersk Strategy
Maersk has been strengthening its investments in the logistics and services sector.
Last year, in addition to Visible SCM, Maersk acquired B2C Europe, an E-Commerce logistics company in Europe, and Senator International, a German air forwarder.
In addition, at the end of last year, it announced the acquisition of Hong Kong logistics giant LF Logistics.
In two months, Maersk has invested more than USD5 billion in the company and its pilots combined, the article concludes.
E-Commerce Market
This is where I think the shift to E-Commerce in the industrial sector is key.
The market for E-Commerce is growing, and I looked up some statistics.
E-Commerce Market in 2020
In case of B2C
1. China: approx. USD2 trillion (+27% YoY)
2. North America: approx. USD700 billion (+32% YoY)
3. UK: approx. USD200 billion (+34% YoY)
4. Japan: approx. USD1200 billion (+14% YoY)
In case of B2B
North America: approx. USD1 trillion
E-Commerce Market in Japan
In Japan, I have a strong impression that people are placing and receiving orders through sales, fax, and e-mail rather than E-Commerce.
I don’t feel that E-Commerce is growing in Japan, but the growth rate and the amount of money is different in Western countries.
I don’t think that 100% will shift to E-Commerce in the future. However, the scale of E-Commerce in Japan is currently smaller than that of Western countries, but it is sure to increase at some point.
I think it is better to grasp how the trend is flowing.
I will continue to update this information.
That’s all for today. Thank you.
