Volatility of shipping earnings over the last decade increasingly pushing carriers to expand into logistics sector.
A lack of stability in #carrier earnings, plus a limit to consolidation has seen nearly all M&A activity over the past two years focus on logistics.
Efforts to smooth out earnings and offer investors more solid earnings are behind many of the moves into logistics. CMA CGM with its acquisition of CEVA Logistics and Maersk’s migration in 2016 to an integrated #container logistics company, are examples of this trend.
M&A activity over the past two years has included Maersk’s purchase of warehouser Performance Team, intermediary KGH Customs Service, forwarder Forto, trucking specialist Loadsmart, and logistics e-commerce companies HUUB, Visible and Europe B2C.
Meanwhile, CMA CGM’s agreement to buy a 30% stake in Groupe Dubreuil Aero failed but the French carrier went ahead with establishing its own air freight division, CMA CGM Air Cargo.