📊 Multimodal 2024: The Future of Logistics

Irbis Index January 2024

To view the full Index for January 2024 click here.

News

Multimodal 2024: The Future of Logistics Multimodal 2024, the leading supply chain industry event, is poised for a record-breaking return in June 2024 at Birmingham's NEC.

• The event has seen a significant surge in visitor registrations and has already attracted over 230 exhibitors, including major players like Amazon, CEVA Logistics, DP World, and Maersk.

• The event's popularity is evident from a 50% increase in visitor registrations compared to the previous year, signaling the industry's anticipation for this key gathering.

• Sustainability is a central theme of Multimodal 2024, with the organizers, Clarion Events, committed to the Net Zero Carbon Events initiative.

• Additionally, the exhibition and conference sessions will focus on guiding cargo owners and shippers toward more sustainable shipping methods. (link)

WCL's Hans Willam: 'M&A, not tech, will shape the supply chain' Hans J. Willam of Worldwide Container Logistics (WCL) has posited that mergers and acquisitions (M&A) will be the primary force shaping the future of the supply chain, rather than technological advancements.

• This statement comes during a period of notable M&A activity within the logistics industry, including the potential sale of DB Schenker by Deutsche Bahn, with DSV being a possible buyer.

• The consolidation and realignment of companies through M&A are expected to significantly influence the dynamics of the industry, potentially more so than technological innovations.

• Deloitte's analysis indicates that despite a slowdown in the overall M&A market, the transport and logistics sector remains active, with a significant number of cross-border deals and private equity (PE) firms playing a substantial role in the industry's M&A activity.

• Hans Willam's assertion reflects an industry-wide perspective that M&A activities are crucial in shaping the future of the supply chain. This view is supported by current market developments and analyses, which indicate a lively M&A market within the transport and logistics industry. (link)

KKR Japan logistics operator selling $830M in warehouses to J-REIT KKR's Japan-based logistics operation is making a significant move by selling a portfolio of warehouses valued at $830M to a Japanese Real Estate Investment Trust (J-REIT).

• The transaction involves the sale of logistics assets from KKR's affiliate Logisteed to Industrial & Infrastructure Fund Investment Corporation (IIF), a trust managed by KKR.

• The deal includes a total of 28 logistics assets, encompassing over 389,603 square meters (approximately 4.1M square feet).

• To fund the acquisition, IIF is selling two Greater Tokyo logistics assets to an undisclosed domestic company for JPY 13.5B. (link)

Yodel bought by rival in consortium rescue deal Yodel, a major UK courier firm previously owned by the Barclay family, has been acquired in a rescue deal by a consortium led by its industry rival, Shift.

• The consortium, named YDLGP, includes Shift's founder Jacob Corlett, and investment bank Solano Partners.

• This acquisition, which was finalized amid concerns that Yodel might enter administration, is expected to secure thousands of UK jobs.

• The deal also entails YDLGP taking full control of Shift, further expanding its logistics capabilities with Shift's AI-driven technology platform.

• The transaction aims to ensure continuity for Yodel's customers, employees, and stakeholders while leveraging new shareholder support and technological advancements for future growth. (link)

Accenture to acquire procurement consultancy Insight Sourcing Accenture has announced its agreement to acquire Insight Sourcing, a strategic sourcing and procurement services provider, aiming to enhance its offerings for private equity companies and industries such as consumer retail, technology, and industrial sectors.

• This acquisition will add approximately 220 sourcing consultants to Accenture's team and include Insight Sourcing’s suite of over 40 technology procurement tools.

• Insight Sourcing, known for its expertise in optimizing costs for direct and indirect materials, services related to capital expenditures, and energy procurement management, serves more than 60 companies, including 10 of the largest funds in North America.

• This move is part of Accenture's strategy to expand its capabilities and address the growing demands from private equity investors for tailored and repeatable solutions that drive value. (link)

Earnings

Ryder System, Inc. reported its fourth-quarter earnings, revealing a mix of growth and challenges. The company saw operating revenue climb to $2.4 billion, a modest 2% year-over-year increase. However, comparable earnings per share (EPS) from continuing operations dipped to $2.95 from $3.89 in the previous year, primarily due to softer market conditions affecting used vehicle sales and rental demand. Despite these headwinds, Ryder managed to maintain a solid return on equity at 19%, hitting its target range. The acquisition of Cardinal Logistics is projected to boost revenue significantly.

GXO Logistics announced a strong performance in its fourth-quarter earnings report, with revenue reaching $2.6 billion. The company also reported a net income of $73 million for the quarter. Additionally, GXO's adjusted diluted earnings per share stood at $0.70, which exceeded the expectations set by the Zacks Consensus Estimate. The positive earnings report highlights GXO's continued growth trajectory and its strategic positioning to capitalize on the expanding logistics market.

Other headlines 

India has halted agricultural exports due to unaffordable freight rates, impacting its strong agri-export sector valued at $53.1B last fiscal year.

Over 100 business groups have urged global governments to ensure safe and secure trade on the Red Sea, highlighting the impact of route changes and attacks on shipping rates and port congestion.

ArcBest has introduced a new line of automated forklifts and reach trucks designed to enhance efficiency in distribution centers and manufacturing facilities.

Cocoa supply challenges may result in chocolate producers offering smaller bar sizes to manage costs, amidst a backdrop of the highest cocoa prices in 46 years.

Mexico is advancing its rail freight ambitions with a plan to run freight trains between its Pacific coast and the Gulf of Mexico, potentially offering an alternative to the Panama Canal.

The U.S. Air Force is conducting trials with autonomous cargo planes, including the Pyka Pelican Cargo with a 400-pound capacity and 200-mile range.

Gaw Capital Partners has sold three logistics assets in China to Ping An for over $280 million, marking a successful exit from Gaw's first logistics vehicle in the country.