By Jeff Berman, Group News Editor ·
21 June 2022
Earlier this month, a Reuters report indicated that Hedehusene, Denmark-based global 3PL DSV A/S, was interested in acquiring Minneapolis, a global logistics services provider and freight forwarder C.H. Robinson’s Global Forwarding Business (CHR). The report says that DSV is looking to expand in North America, adding that CHR’s global forwarding business will give DSV what it calls critical access to the trans Pacific trade route, with the global forwarding business potentially having a $9 billion price tag. What’s more, he added that DSV has long been interested in expanding into North America, having previously stated it wants to do so through mergers and acquisitions, at a time when the global logistics market has seen increased M&A activity. CHR and DSV officials did not provide comment for the Reuters report. Morgan Stanley transportation analyst Ravi Shanker wrote in a research note that when Cleveland-based Ancora Holdings was announced as a strategic investor for CHR in late February in a joint venture, his company observed that potentially splitting up CHR and spinning or selling a forwarding unit could help quickly open up CHR. value for the company. “CHRW [management] has long stated that they believe NAST [North American Surface Transportation] and the Forwarding business belong together, but perhaps the involvement of strategic investors has prompted a mindset change,” Shanker wrote. “Global Forward has undoubtedly been one of the biggest pandemic ‘winners’—gross revenue nearly 3x its 2019 level and net income ~2X. It makes sense that CHRW would want to sell the business at the top—but DSV is a savvy buyer who is also a key player in the business and will know a lot.” And he also wrote that M&A is part of DSV’s strategy, making it reasonable to look at CHR’s Global Forwarding unit. , adding that DSV attaches great importance to scale in freight forwarding, with the industry being highly fragmented. Evan Armstrong, president of Milwaukee-based supply chain consultancy Armstrong & Associates, told LM that DSV’s interest in C.H. Robinson’s Global Forwarding Division makes a lot of sense. “With DSV’s history of successful acquisitions in the International Transportation Management (ITM) space of Agility’s $4.2 billion Global Integrated Logistics (GIL) business in August 2021, then Panalpina in 2019, and UTi Worldwide in 2016, DSV has grown to become the third largest sea freight forwarders globally with 2.9 million TEUs and the third largest air carrier with 1.6 million metric tons,” he said. “Last year, its Americas division grew year-on-year gross revenue by 88.2% to $6 billion and net revenue by 48.3% to $1.1 billion with solid increases in air and sea volumes and revenues. C.H. Robinson has been growing rapidly through organic growth and acquisitions since 2011, when it had a net income of $100 million. In 2012 it gained significant capability and scale through the $807 million acquisition of Phoenix International. From there, it added $251 million provider APC Logistics Aussie in 2016, $124 million ITM Milgram Canada in 2017, and $84 million Madrid, Spain-based Space Cargo in 2019.” As for CHR, he said that C.H. Robinson’s Global Forwarding Division more than doubled in 2021 with gross revenue growth of 117.1% to $6.7 billion, and net revenues increasing by 70.7% to $1.1 billion. “C.H. Robinson is now the top shipper on the Asian trade route to the US and with a total of 1.5 million TEUs of sea exports (equivalent to 20 containers) under management,” said Armstrong. “It has surpassed longtime competitor Expeditors International based in the US. S When comparing sea and air cargo shipment volumes from our Top 3 Global Freight Forwarders [Kuehne + Nagel, DHL Global Forwarding and DSV], DSV is the only freight forwarder of the three to maintain an upward trajectory in volume. what id you add C.H. Robinson’s 2021 volume of 1,500,000 marine TEUs and 300,000 metric tons of air freight into the mix, you see it continues to do well for DSV, especially in sea freight.”
Earlier this month, a Reuters report indicated that Hedehusene, Denmark-based global 3PL DSV A/S, was interested in acquiring Minneapolis, global logistics services provider and freight forwarder C.H. Robinson’s Global Forwarding Business (CHR).
The report says that DSV is looking to expand in North America, adding that CHR’s global forwarding business will give DSV what it calls critical access to the trans Pacific trade route, with the global forwarding business potentially having a $9 billion price tag. What’s more, he added that DSV has long been interested in expanding into North America, having previously stated it wants to do so through mergers and acquisitions, at a time when the global logistics market has seen increased M&A activity.
CHR and DSV officials did not provide comment for the Reuters report.
Morgan Stanley transportation analyst Ravi Shanker wrote in a research note that when Cleveland-based Ancora Holdings was announced as a strategic investor for CHR in late February in a joint venture, his company observed that potentially splitting up CHR and spinning or selling a forwarding unit could help quickly open up CHR. value for the company.
“CHRW [management] has long stated that they believe NAST [North American Surface Transportation] and the Forwarding business belong together, but perhaps the involvement of strategic investors has prompted a mindset change,” Shanker wrote. “Global Forward has undoubtedly been one of the biggest pandemic ‘winners’—gross revenue nearly 3x its 2019 level and net income ~2X. It makes sense that CHRW would want to sell the business at the top—but DSV is a savvy buyer who is also a key player in the business and will know a lot.”
And he also wrote that M&A is part of DSV’s strategy, making it reasonable to look at CHR’s Global Forwarding unit, adding that DSV attaches great importance to scale in freight forwarding, with the industry being highly fragmented.
Evan Armstrong, president of Milwaukee-based supply chain consultancy Armstrong & Associates, told LM that DSV’s interest in C.H. Robinson’s Global Forwarding Division makes a lot of sense.
“With DSV’s history of successful acquisitions in the International Transportation Management (ITM) space of Agility’s $4.2 billion Global Integrated Logistics (GIL) business in August 2021, then Panalpina in 2019, and UTi Worldwide in 2016, DSV has grown to become the third largest sea freight forwarders globally with 2.9 million TEUs and the third largest air carrier with 1.6 million metric tons,” he said. “Last year, its Americas division grew year-on-year gross revenue by 88.2% to $6 billion and net revenue by 48.3% to $1.1 billion with solid increases in air and sea volumes and revenues. C.H. Robinson has been growing rapidly through organic growth and acquisitions since 2011, when it had a net income of $100 million. In 2012 it gained significant capability and scale through the $807 million acquisition of Phoenix International. From there, it added $251 million provider APC Logistics Aussie in 2016, $124 million ITM Milgram Canada in 2017, and $84 million Madrid, Spain-based Space Cargo in 2019.”
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As for CHR, he said that C.H. Robinson’s Global Forwarding Division more than doubled in 2021 with gross revenue growth of 117.1% to $6.7 billion, and net revenues increasing by 70.7% to $1.1 billion.
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“C.H. Robinson is now the top shipper on the Asian trade route to the US and with a total of 1.5 million TEUs of sea exports (equivalent to 20 containers) under management,” said Armstrong. “It has surpassed longtime competitor Expeditors International based in the US. When comparing sea and air cargo shipment volumes from our Top 3 Global Forwarding Companies [Kuehne + Nagel, DHL Global Forwarding and DSV], DSV is the only forwarding company of the three to maintain an upward trajectory in volume. When you add C.H. Robinson’s 2021 volume of 1,500,000 marine TEUs and 300,000 metric tons of air freight into the mix, you see it continues to do well for DSV, especially in sea freight.”
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Jeff Berman is Group News Editor for Logistics Management, Modern Material Handling, and Supply Chain Management Overview. Read also : The diversity business case is being pushed back. Jeff works and lives in Cape Elizabeth, Maine, where he handles all aspects of the supply chain, logistics, freight transportation and material handling sectors on a daily basis. Contact Jeff Berman
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|---|---|---|
| C.H. Robinson & Middot | DSV & middot | |
| Global Logistics · | ||
| M&A · | Amazon has launched its delivery brokerage platform, according to FreightWaves. The online service, which is currently in beta in Connecticut, Maryland, New Jersey, New York, and Pennsylvania, allows shippers to get instant quotes and match delivery services. | Rank |
| giver | Gross Revenue (US$ Millions)* | 1 |
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