Maersk dives into bulky delivery services with $1.7B Pilot deal

Dive Brief:

A.P. Moller - Maersk will pay nearly $1.7 billion to acquire Pilot Freight Services, a first, middle and last-mile company specializing in big and bulky freight, the shipping line announced Wednesday.
Pilot operates 87 stations and hubs throughout North America and relies on third-party trucking to move goods. The deal will expand Maersk's U.S. network to around 150 facilities, and will boost the shipping line's ability to move bulky freight such as furniture and auto parts for consumers and businesses.
The acquisition is subject to regulatory review and expected to be completed by Q2 of 2022. Vincent Clerc, Maersk CEO of Ocean and Logistics, said the deal "will allow us to create more exciting solutions for our customers and support them through the acceleration of the migration towards e-commerce."

Dive Insight:

The new acquisition furthers Maersk's plan to expand from an ocean carrier to an end-to-end supply chain service provider.

In 2021, Maersk acquired six businesses within air, e-commerce, warehousing and fulfillment, and opened 85 new warehouses, according to a recent earnings statement.

The shipping firm noticed an increase in e-commerce and the need for new distribution networks and solutions to meet consumer demand, according to the press release. Adding Pilot's footprint to its network "extends our geographical reach and capacity," Maersk spokesperson Thomas Boyd said in an email.

"By investing in first mile, middle mile and last middle and integrating them we meet a clear customer demand," said Narin Phol, regional managing director at Maersk North America, in the company announcement. "This acquisition will add even more expertise and supply chain capacity to customers facing capacity constraints and multiple handoffs with providers in the B2C and B2B space."

The major shipping line isn't the only one expanding last-mile services. In January, CMA CGM announced it would to acquire Colis Privé, a leading parcel carrier for home and relay deliveries in France.

Maersk is growing its global footprint, now at 3.1 million square miles, and has no intention of stopping.

"The expectation is to continue to make acquisitions, mainly of new capabilities and growth platforms, to expand the logistics business," according to Maersk's Q4 interim report.