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Mike Rosendahl

E: mrosendahl@pcecompanies.com

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Industry Trends

Companies will Need to Adapt to Succeed in Transportation

The 2023 rebound in full-truckload rates sets the stage for potential 2024 hikes due to limited capacity. Parcel rates, exemplified by FedEx and UPS, continue to rise. Shippers can counter costs with tech-driven procurement, green logistics, and agile strategies. In a year of expected fluctuations, partnerships and AI-powered platforms will be key for effective cost management across transportation modes.1

Boeing Pays for 737 Max Incident

Boeing compensates Alaska Airlines with $160M for a 737 Max 9 incident, where a panel blew out mid-flight. Alaska anticipates further compensation, expecting $1.05-$1.15 loss per share due to the incident. Analysts predicted an 86-cent loss. Despite setbacks, Alaska sees strong travel demand and West Coast business recovery. Boeing remains silent on the matter.2

Freight Market Finds Stability Amid Rate Dips

Freight market indicators reveal steady demand in the freight industry, with load postings remaining similar to last year despite challenges such as disruptions in the Red Sea. Supply is correcting, with new entrants and fewer exits indicating a stabilizing carrier population. Spot rates have dipped to near cycle lows, with dry van rates at $1.55 per mile and reefer rates at $1.84 per mile in March. Despite this, contract rates have held steady, suggesting a market moving towards stabilization and offering cautious optimism.3

Taiwan Earthquake Rattles Supply Chain

A powerful 7.2-magnitude earthquake in Taiwan is expected to tighten the supply of tech components like display panels and semiconductors. While manufacturers are restoring operations, disruptions may lead to delays in shipments and potential price increases. TSMC and Nvidia are among the companies impacted, with potential effects on global electronics manufacturing going into Q2 2024.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Omni Logistics, LLC
  • Forward Air Corporation 
  • $3,200.00
  • Cardinal Logistics Management Corporation
  • Ryder System, Inc.
  • $290.00
  • Maytag Aircraft LLC
  • Unknown
  • $46.00
  • Oaktree Capital Management, L.P.
  • Unknown
  • $2.40
  • Edward Transit Express Group Inc.
  • Cheetah Net Supply Chain Service Inc.
  • $1.50

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Best Warehousing and Transportation Center, Inc.
  • Charlesbank Capital Partners, LLC
  • n/a
  • Certain assets and operational subsidiaries of IAP Worldwide Services, Inc.
  • Black Diamond Capital Management, L.L.C.
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Grant Street Companies, LLC
  • Vehicle Management Solutions, LLC
  • n/a
  • Blue Tide Group
  • BlackSea Technologies
  • n/a
  • Quality Air Forwarding, Inc.
  • MAGNATE WORLDWIDE Ltd., LLC
  • n/a
  • Transloading business of Cascade Warehouse Company, Inc.
  • Savage Services Corporation
  • n/a
  • Mid-Continent Aviation Services, LLC
  • Yingling Aircraft, Inc.
  • n/a
  • Growth Jet
  • Fulfillment Hub USD
  • n/a
  • Nova Marketing Services, LLC
  • Nova Brand Projection
  • n/a
  • Northern Dry Bulk, Inc.
  • Kenan Advantage Group, Inc.
  • n/a
  • Michael L. Clements I, Ltd.
  • Armada Supply Chain Solutions, LLC
  • n/a
  • Mulch Division of T.C. Transport, INC
  • A. M. Logging, LLC
  • n/a

 

Source S&P Capital IQ as of 4/15/2024 and PCE Proprietary Data

PCE Transactions

Contacts

Michael Rosendahl

New York Office

201-444-6280 Ext 1 |

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Eric Zaleski

Chicago Office

847-239-2466 |

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Kyle Wishing

Atlanta Office

404-994-4186 |

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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. 1. Bart De Muynck. "2024 US Domestic Logistics Outlook: Trends and Strategies." FreightWaves, 28 March 2024
  2. 2. "Alaska Airlines gets $160M from Boeing for panel that blew off." AP News, Associated Press, 31 Mar. 2024
  3. 3. Arrive Logistics. "Arrive March 2024 Freight Market Update." Freight Caviar
  4. 4. Mo, Liam, and Brenda Goh. "Taiwan quake to hit some chip output, cause Asia supply chain disruptions - analysts." Reuters, April 3, 2024
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