THE IMPACT OF MAERSK BUYING PILOT FREIGHT SERVICES FOR $1.68 BILLION
Bloomberg summed it up nicely saying that, “A.P. Moller-Maersk A/S agreed to buy Pilot Freight Services LLC for $1.68 billion, shoring up its road-transport business while signaling an unprecedented boom in container shipping may be starting to fade.”
The interesting part is the timing of the transaction. “The deal announced Wednesday coincides with a 2022 profit forecast that falls well below analysts’ estimates. Maersk said it expected a strong first half before a “normalization in ocean” early in the second half. Container firms have enjoyed massive profits over the past two years, as port backups and consumers buying goods from home drove up prices during the Covid-19 pandemic. Maersk and its peers have been using the money to diversify, strengthening in areas such as air freight and logistics.”
It’s encouraging that one of the major players is saying the supply chain issues will dwindle by the end of the year. But what does it mean for the smaller, independent players?
According to Logistics Mgmt, “Maersk plans to extend its integrated logistics offering deeper into the supply chain of its customers to complement previous acquisitions it has made to provide integrated logistics solutions in North America, including Performance Team (PT) (B2B warehousing and distribution) and Visible SCM (e-commerce warehousing and parcel distribution). Maersk also said that Pilot will be adding new services within the big and bulky e-commerce segment, and subsequently boost cross-selling opportunities, as well as create significant cost synergies by leveraging capabilities across the different parts of service solutions.”
This is no time for fear or misgivings. The value of your Globalink and/or Global Value Network Membership has just gone up dramatically. In fact, this development should encourage you to become more engaged with your partners than ever before. If you don't have a plan or program of doing this, and committing energy to it, you are unnecessarily putting your company at risk!
With the number of our members, our worldwide coverage, and the amazing service and hustle of small to medium forwarders, we should be able to outmaneuver anyone. Opening this pipeline even more (which doesn't cost you a thing in terms of investments) makes even more sense.
It’s time to network in your network, and there is no better network to do that than Gloablink and Global Value.