Blog Author

Mike Rosendahl

E: mrosendahl@pcecompanies.com

Follow me: LinkedIn

Industry Trends

Ocean Shipping Companies Look for Alternative Fuel Options

The International Maritime Organization (“IMO”) is pushing to cut CO2 emissions from ships in half by the year 2050. As a result, ocean shipping companies want to replace their tarlike “bunker fuel” with cleaner fuel like methanol and natural gas. However, the transition has been slow due to the cost of ships and their long lifespan. According to Clarksons, a shipping services provider, the cost of new fuel production, infrastructure, and replacement ships will be around $3 trillion over the next several decades.1

Flight Demand Reaches 3-Year High

U.S. carriers have been enjoying strong consumer demand, and executives such as Delta’s CEO Ed Bastian have an upbeat outlook for next year as more people travel for work and pleasure. The demand has allowed the carriers to charge higher ticket prices which offset increasing labor and fuel costs. It remains to be seen if the trend continues as the economy slows and companies and consumers cut back on spending.2

Supply Chains Recover from Crisis

U.S. retailers have sufficient inventory, cargo ship backlogs are gone, and shipping rates have dropped to levels not seen since 2020. All signs point to a recovered supply chain allowing goods to reach companies and customers. FedEx reported an on-time performance rate of 95.3%, up 11% from November 2021. Similarly, the president of ShipMatrix estimated there was enough capacity to handle another 3-5 million daily packages for the peak holiday season.3

Werner Trucks Arms Fleet with AI Tech

Werner Enterprises partnered with Samsara Inc. to enable the fleet of roughly 8,500 trucks with dashboard artificial intelligence that detects objects and gives a live analysis of driving. Approximately 94% of commercial trucking companies are monitoring their drivers in some capacity. Along with improving driver safety, it will help drivers stay on the road longer, moving freight. These features are crucial to fighting the industry-wide labor shortage and pushing Werner toward its $5 billion revenue goal.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Skyway Concession Company, LLC
  • Atlas Arteria Limited
  • $3,396.65
  • Access USA Shipping, LLC
  • Aramex PJSC
  • $265.00
  • ReedTMS Logistics
  • Werner Enterprises, Inc.
  • $112.4

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Bulk Express Transport, LLC
  • Alterna Equity Partners
  • n/a
  • Flash Global Logistics, Inc.
  • Comvest Partners
  • n/a
  • Pacific Cascade Distribution, LLC
  • World Shipping, Inc.
  • n/a
  • Mid-States Packaging, Inc.
  • Quantix SCS, Inc.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Baylor Trucking, Inc.
  • Werner Enterprises, Inc.
  • $95.00
  • Glid, LLC
  • Genesis Electronics Group, Inc.
  • $4.00
  • substantially all of the assets of FBO Air-Garden City, Inc.
  • Crosby Flying Services LLC
  • $1.60

 

Source S&P Capital IQ as of 1/10/2023 and PCE Proprietary Data

PCE Transactions

Contacts

Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

Read More

Michael Poole

Orlando Office

407-621-2112 |

Read More

Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. Paris, C. “Shipping Industry Balks at Green Energy Transition.” Wall Street Journal. 22 December, 2022.
  2. Singh, R. “Delta sees air travel boom nearly doubling its 2023 earnings.” Reuters. 14 December, 2022.
  3. Fung, E., Paris, C. & Terlep, S. “Supply Chains Upended by Covid Are Back to Normal.” Wall Street Journal. 23, December, 2022.
  4. Lin, Belle. “Werner CIO Looks to Outfit Company Trucks With AI-Enabled Tech.” The Wall Street Journal. 15, December, 2022.
RELATED RESOURCE
RELATED RESOURCE

Resource Title goes here

Read now
contact usan image