Revealing bumper record profits, A.P. Moller \u2013 Maersk today announced the acquisition of an American logistics provider.<\/p>\n
The Danish transport giant is paying $1.68bn for Pilot Freight Services, a US-based first, middle and last mile as well as border crossing solutions provider, specialising in the big and bulky freight segment in North America for B2C and B2B distribution models. Maersk is buying Pilot from ATL Partners, a sector-focused private equity firm in New York and British Columbia Investment Management Corporation (BCI), one of the largest institutional investors in Canada.<\/p>\n<\/div>\n
\nLong-term container contracts now represent 65% of Maersk\u2019s ocean business<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n
\u201cWith the intended acquisition of Pilot, Maersk will extend its integrated logistics offering deeper into the supply chain of its customers,\u201d Maersk stated in a release, saying Pilot would complement earlier acquisitions already made to provide integrated logistics solutions in North America, especially with Performance Team, a B2B warehousing and distribution firm and Visible SCM, an e-commerce warehousing and parcel distribution company.<\/p>\n
\u201cPilot will be adding specific new services within the fast growing big and bulky e-commerce segment, thus increasing cross-selling opportunities,\u201d Maersk explained.<\/p>\n
Pilot operates a North American facilities-based transportation network of 87 stations and hubs through which freight is transported and distributed to end customers. The company uses mainly third party providers of trucking and has access to controlled capacity. Pilot bought American Linehaul Corporation last year, giving it expertise in middle mile, LTL expedited capabilities.<\/p>\n
<\/div>\n\u201cBy investing in first mile, middle mile and last middle and integrating them we meet a clear customer demand,\u201d said Narin Phol, regional managing director at Maersk North America.<\/p>\n
Maersk, the world\u2019s second largest containerline, announced record earnings for 2021 today. Revenue was up 55% to $61.8bn, EBITDA tripled to $24bn and free cash flow was $16.5bn.<\/p>\n
Among many statistics revealed by Maersk today, long-term container contracts now represent 65% of Maersk\u2019s ocean business, up from 50% a year ago.<\/p>\n
Maersk said it expects the current market situation to continue into Q2 2022 with a \u201cnormalisation\u201d to occur early in the second half of the year. The company is forecasting an underlying EBITDA of $24bn for the full year 2022, just like 2021\u2019s final result.<\/p>\n
\u201cOcean is expected to grow in line with global container demand, which is expected to grow 2-4 pct. in 2022, subject to high uncertainties related to the current congestion, network disruptions and demand patterns,\u201d Maersk stated in a release.<\/p>\n
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