Since the outbreak of the pandemic, congestion and a lack of capacity have forced retail giants in the US and Europe, including HomeDepot, Walmart and Ikea, to pay attention to the risk of disruptions to their supply chains.
Some companies are chartering ships and containers to take control of the supply chain, and retail giants such as Lidl have even set up their own container shipping companies.
However, in the past few months, a new trend has become more and more obvious among big shippers and retail giants in Europe and the United States. This is the direct acquisition of high-quality freight forwarders and logistics companies!
According to One Shipping recently learned: in order to ensure their own supply chain security, from the United States clothing retail giant American Eagle is the industry pioneer!
Industry insiders say vertical integration may pose a competitive threat to logistics companies. “My concern for freight forwarders is that if they don’t invest, shippers will. The biggest competitive threat to freight forwarders is not carriers or other freight forwarders, but shippers.”
She said: “My fear for forwarders is that if they don’t invest, The biggest competitive threat to forwarders is not Carriers or other forwarders, it’s shippers.”
Furniture retail giant Ashley Furniture has acquired Wilson Logistics
Not only American Eagle, the fifth largest US retailer and the largest US Furniture retailer, Ashley Furniture, announced the acquisition of Wilson Logistics as part of its plan to expand its capabilities and deliver to customers faster. A big step into logistics.
▲Ashley Furniture buys logistics business
And the latest cargo owner to buy a logistics business, happened this week!
Loadstar reports that South Korean food manufacturing giant Daesang Corp has announced that it has acquired Traffix, a well-known third-party logistics company in North America.
The acquisition, valued at $260 million, was made by UTC Investment, Daesang’s private equity affiliate, and Forest Partners, another South Korean private equity firm, according to public filings.
Traffix is acquired by a retail shipper
It is reported that the acquired Traffix is a well-known third party logistics enterprise in North America, the company has about 500 employees, has a freight network across the United States, Canada and Mexico, about 4000 operators, and to provide warehousing services.
The buyer, Daesang Corp, a food manufacturing and retail giant from South Korea, intends to use the acquisition to expand its North American presence and create synergies with its kimchi factory in Los Angeles.
With sea freight rates persistently high and capacity scarce, freight interests want to manage rising shipping costs through vertical integration.
Starting in 2021, a number of companies, including Amazon, Ikea, Home Depot and Dollar Tree, as well as Walmart suppliers, reported chartering ships to ship containers from Asia.
Fedex has launched a container service that leases bulk carriers from Asia to give shippers the chance to ship goods to California, while it is also taking delivery of new containers in China that will be used for its land freight service in the United States.