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Winter 2024 | M&A Report In The Transport, Logistics and Supply Chain Industry Sector

By Peter Heydenrych

January 31, 2024

The report below gives a good overview of the Winter 2024 M&A activity in the Transport, Logistics and Supply Chain Industry Sector. The logistics sector plays a vital role in facilitating trade and entrepreneurial activities by managing the transportation, storage, and delivery of goods across B2B, B2C, or C2C supply chain networks. Currently, logistics firms employ cargo transportation services via land, air, and water, adapting to evolving economic patterns and digitalization. Serving as a cornerstone of international trade, the global logistics industry surpassed €8.4 trillion in 2021 and is anticipated to surpass €13.7 trillion by 2027. In tandem, global logistics costs reached US$9 trillion in 2020, constituting 10.7 percent of the US$85.24 trillion global Gross Domestic Product (GDP) for that year. The worldwide pandemic not only sped up the growth of eCommerce but also disrupted traditional supply chains. Geopolitical uncertainties and global inflation have added to the upheaval in longstanding trade norms. Shipping expenses, notably, have surged significantly since 2018. In the past 12 months leading up to November 15, 2023, the transportation and logistics (T&L) sector witnessed an 82% decline in deal value and a 33% decrease in deal volume compared to FY 2022, both hovering around half of pre-COVID levels; based on PWC's report. While average deal values held steady, there were only 7 deals exceeding $1 billion during the specified period, a notable drop from the 29 such deals in FY 2022. The airfreight and logistics subsector was the exception, with deal values approaching pre-COVID levels. Similar to other industries, the slowdown in T&L deal activity is influenced by challenges like an elevated cost of capital and ongoing uncertainties related to economic and geopolitical conditions. As per the World Bank's Logistics Performance Index (LPI), India has advanced six positions, securing the 38th rank among 139 nations. This progress is credited to factors such as technological advancements, data-centric decision-making, and legislative measures aimed at fostering top-tier infrastructure.

Posted by Peter Heydenrych.

Read the Entire Winter 2024 Transport, Logistics and Supply Chain Report Here