Global logistics giants jostle for top spot
15th November 2021
With market dynamics still skewed as limited capacity and sky high freight rates continue, conditions still present a challenging market for shippers and forwarders.
DSV Panalpina moves into top spot!
As DSV Panalpina has met all the conditions and requirements for the acquisition of Agility’s Global Integrated Logistics business to complete its takeover - it leapfrogs both Kuehne + Nagel and DHL Global Forwarding to become the world’s largest freight forwarder in terms of air and ocean revenues. That's according to the Transport Intelligence recently published Global Freight Forwarding Market 2021. Kuehne + Nagel were ranked as the current market leader, with combined revenues of €11.5bn, followed by DHL Global Forwarding, with €10.9bn.
Is the consolidation good for the sector'
Will the 30.2 billion acquisition of Global Integrated Logistics from Agility by DSV Panalpina of the sectors largest providers be a force for good' DSV CFO Jens Lund said
We’ve been shocked at ocean rates over the last months. We’ve seen rates we’ve never dreamed about. But as one of the largest procurers of ocean freight in the world, we do have some buying power. “There are lots of levers we can us going forward, and the size and buying power of DSV is one of these.
Jens Bjorn Andersen, DSV CEO, said he expected rates eventually to settle somewhere between 2019 and 2021 levels.
I don’t believe we will go back to the rate levels we saw before. We want the shipping lines to be healthy. We are very happy with our yields, and will keep them as high as we can.
Scale a key driver of competitiveness
Within transport and logistics, size is critical and with the acquisition DSV fortifies its position as one of the world’s largest transport and logistics companies. The combined DSV and GIL business is aiming to use the strengthened position in the market to continue to grow through enhanced service offerings for customers, market-leading IT infrastructure and economies of scale.
The Global Freight Forwarding market contracted by 8.7% in 2020, but is expected to bounce back strongly with growth of 11.6% in 2021 and a CAGR of 5% from 2020-2025. Air freight is set to grow at 14.9% in 2021 and at a CAGR of 5.4% from 2020-2025.
Spatial Global providing you with a safe pair of hands
As these tectonic plates of the Global freight forwarding undoubtedly continue to jostle for top spot, the market remains highly volatile, but is settling into its recovery phase after dramatic contractions in 2020. The Spatial Global team has a vast wealth of experience and can help you navigate the changes in the global logistics infrastructure. Our global network of agents means we have the local knowledge to find you the most competitive and reliable routes possible in this dynamic sector.