Forwarding

The Denmark-based forwarder believes the solid increase in volume it saw in the traditionally weak first quarter will extend through the rest of the year, with a focus on improving yields to keep its 2024 profitability target on track.

Demand that began to build at the end of last year spilled into the first quarter and K+N says its forward bookings indicate the positive volume development will continue as the year progresses.

The primary dilemma for shippers is whether to source visibility data or applications from a standalone vendor or to expect it to be included in a bundle from a third-party logistics provider.

The air freight market is off to a strong start this year with volume out of Asia up 11% in the traditionally slow first quarter while rates rose steadily through March.

Maersk has been a lone exception to the truism that customer demands for neutrality inevitably lead carrier-owned forwarders to be structurally independent.

The top end of the global 3PL sector is populated by companies that see a down market as a chance to focus on higher-yield customers and those that see a chance to build market share.

The acquisition will add significant volume of air and ocean cargo to the MSC subsidiary and extend its reach into European markets.

The global forwarder is up for sale, and its high level of profitability during an otherwise challenging year for logistics could improve a selling price that analysts have already said could top $20 billion.

This year’s annual service contract negotiations are occurring amid the latest disruption in container shipping as vessels divert away from the Red Sea and Suez Canal to avoid possible attacks by Houthi militants.

The port operator has grown its global forwarding footprint to 100 offices, using its network of terminals, warehouses, road and rail to provide greater visibility and control of shipments.

As the shock of diversions around southern Africa wears off and weekly schedules mostly return to normal, the spot rates that peaked in mid-January are falling fast.

DHL’s decision leaves Denmark’s DSV as the only remaining obvious potential bidder for DB Schenker after Kuehne+Nagel confirmed last week it would not pursue an acquisition.

Otto Schacht, who’s worked for Hapag-Lloyd and Kuehne+Nagel, said forwarders will remain vital to the industry thanks to a high degree of customer service.

The offer made by CEVA in January appeared to be a done deal, but GXO’s competing bid delivered a 26% premium on the CEVA offer and was swiftly accepted by Wincanton’s board.

The market upswing that began in November has continued through February, with the forwarder expecting further growth this year, especially in ocean freight.

The carrier’s acquisition spree has brought one of France’s largest transport and logistics companies into the group, but its bid to acquire UK forwarder Wincanton is being challenged.

PayCargo has taken a majority ownership stake in process automation company Rippey AI to better connect invoicing to payment transactions.

Increased driver adoption of apps in the truckload industry was driven in part by now-shuttered broker Convoy, whose technology was relaunched Thursday by forwarder Flexport.

Carriers are dealing with a significant backlog of cargo that has built up because of longer transit times, cutting down available space for exports and raising rate levels.

ChatGPT and generative AI have captured most of the attention around artificial intelligence in logistics, but the diverse range of processes underpinning global supply chains require multiple types of AI working in concert.

The profitability of global forwarders since the pandemic has piqued Maersk’s interest in the sector and it would be “irresponsible” to ignore DB Schenker’s availability, according to the carrier’s CEO.

The Austria-based global logistics provider looks to increase its US presence, adding less-than-containerload services by acquiring a Utah-based forwarder.

The largest US broker and forwarder expects ocean spot rates to subside after the Chinese New Year and for US trucking markets to slowly improve throughout 2024.

While down significantly from 2022, the forwarder remained profitable last year as fourth-quarter gains helped dull the full-year impact of sharply correcting global freight markets.

Most shippers use spreadsheets to manage rates from forwarders and container lines, which contributes to an inefficient process for freight payments and audits.

A guilty verdict against Slync founder Chris Kirchner brings closure on a saga that came to light when Slync employees went unpaid for weeks in spring 2022.

The digital forwarding model saw a stress test in 2023 amid faltering freight volumes and rates, but investments in early 2024 might signify staying power for the concept.

But the analyst noted the expected effect on equipment shortages, port congestion and ship schedules will be far less than that experienced during the pandemic as the supply chain reorganizes itself around the longer transit times.

While the available capacity offered by air and rail is nowhere near that of ocean, the modes give cargo owners an alternative transport option for their more urgent shipments.

Adding the UK and Ireland-focused supply chain specialist will expand the CMA CGM subsidiary’s footprint in the region and add almost $1.9 billion in revenue to its balance sheet.

The new rate increases could be stickier than they would have normally been due to the knock-on effects of carrier disruptions linked to the militant attacks on shipping in the Red Sea, forcing carriers into longer routings around southern Africa.

Going into 2024, 3PLs will need to determine which ancillary offerings they’ll invest in to weather a supply-demand imbalance that will likely last for the next year or two.

None of the most prominent venture-backed names in logistics has had a successful exit yet, but perhaps patience is still required before the industry can say for sure if venture capital is a worthy funding route for company founders.

Those making offers — which analysts say could top $20 billion — are expected to be a list of major global forwarders including DSV, Kuehne+Nagel and DHL Global Forwarding.

There has been no sign of a slowdown in the carrier’s acquisition activities as it uses its cash-rich position to expand its footprint in key port and logistics markets.

Getting the most out of global logistics software sometimes involves using a forwarder as a co-pilot until a shipper is ready to run processes similarly to procurement and order management internally.

The expansion of the three companies, all representing different modes across the US-Canadian border, underscores the depth of the relationship between the two economies.

The expedited less-than-truckload provider has asked a Delaware court to let it kill the controversial deal that has caused its share price to plummet and raised the ire of activist investors.

Shipper associations that struggled to grow during the COVID-19 pandemic because there was no extra capacity to sell are now trying to convince shippers of the benefits of rate stability.

With weak demand for European imports in Asia and ample vessel capacity, spot rate levels on the backhaul trade are in freefall.