Dive Brief:
- Swiss freight forwarding group Kuehne + Nagel is looking for further acquisitions to accelerate its growth, according to a recent press release.
- The statement was made in the context of record profits by the company, despite market challenges affecting the air and sea freight divisions last year, according to The Loadstar.
- Although air and sea freight grew in terms of volumes carried compared to the previous year, revenues for both divisions fell overall. The decreased revenues were balanced, however, by gains in the overland and contract divisions.
Dive Insight:
"The logistics business is going through a period of change with mergers and acquisitions on the one hand and digitalisation, creating new competitors and new business models, on the other," Kuehne + Nagel's Chairman of the Board of Directors, Joerg Wolle, wrote in the annual report.
In the case of Kuehne + Nagel, which is succeeding even in a fractured transport market, it's easy to imagine a greater level of achievement once new efficiencies are added. The company's statement it was looking for more acquisitions falls in line with its goal of boosting innovation, resilience and IT competence.
The ability of older firms to recognize the value of new technology is vital. With it, they can address the demands of a customer base increasingly accustomed to instant price availability, for example. New logistics startups are constantly entering the market, it seems, and the logistics world is taking note.
Whether it is DB Schenker, DHL or Maersk Line, logistics providers at large are seeing the opportunity in aligning with new business models. Thanks to the success of these startups, deep-rooted companies which harvest their agility and simplicity are likely to enjoy great benefits.
