If you keep your finger on the pulse of the shipping industry, you might be surprised to learn of some recent high-profile moves from big players in the last few months. In a move that could shake up the LTL / Freight industry, XPO Logistics announced an acquisition of Con-way for $3B. FedEx just announced their rate increases for 2016 and you'll never guess the average percentage increase! UPS recently announced an acquisition of Coyote Logistics for $1.8B along with an intent to discontinue some types of discounts during the holiday season this year. And CH Robinson, the industry's largest 3PL, announced signficant revenue and profit increases over last year. Read on for more detail and some links to articles and other resources.
Some big changes are afoot in the LTL industry, as the pace and scope of acquisitions continues to pick up this year. Here are some of the most impactful recent headlines you'll want to keep in mind as you consider your shipping needs, carriers, and contract negotiations for next year. Click the headline links for references articles providing more details and additional perspective:
In a move that will make XPO Logistics one of the largest freight and logistics companies in the U.S. ($15B), the company announced intensions to acquire Con-way for $3B. XPO has been on a buying spree over the last few years as it moved from 3PL and logistics operations directly into the trucking business. XPO acquired Norbert Dentressangle SA, a French trucking company, in June for $3.5B. In 2014, XPO also acquired Pacer International, Inc. for $335M. Other recent acquisitions included Optima Services Sotluions, LLC, NLM, and Kelron Logistics.
In case you missed this back in July, UPS entered into an agreement to purchase Coyote Logistics for $1.8B. Perhaps this helped drive interest in the XPO Logistics acquisition of Con-way but in this instance UPS is acquiring a truckload brokerage company.
If you've been following recent increases from the largest parcel providers, an average increase of 4.9% is a bit of a magic number. It's probably no surprise then that FedEx just announced that the expected average price increase for 2016 will be 4.9% across services.
If you hadn't caught this news back in June, UPS informed a number of retailers that it intends to do away with big discounts on oversize packages during this holiday season. As furniture and larger item online commerce has increased, it's become more expensive to ship these items to consumers.
Total revenues of $3.55B for CH Robinson were up 12.1% with LTL revenues up 35% over the last year with improved profitability boosted by its' new FreightQuote.com division. A key part of this improvement seemed to be finding ways to better server smaller LTL shippers who might ship less frequently.
We hope you found this short news brief interesting and hopefully at least one of the tips will help you stay ahead of industry changes. If you have a suggestion on a topic you'd like to see covered or a feature you'd like to see in a video demo, drop us an email!
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