The multimodal shift happens. What does it mean for the industry and for your business?

·       CMA CGM has been authorized by the European commission to buy GEFCO immediately. The deal price is around $488m. Russian Railways, which is sanctioned since March 2022, controlled GEFCO. Russian Railways bought 75% of GEFCO in 2012 for 800 mln. euros.

·       CMA CGM has bought most of Ingram Micro's Commerce & Lifecycle Services (CLS) company for US$3 billion,   becoming the fourth largest global contract logistics provider.

·       Port of Singapore has acquired logistics company BDP International. The deal will strengthen PSA’s logistics and supply chain competencies.

·       MSC buys Bolloré Group’s shipping, logistics, and terminal operations in Africa, as well as its terminal operations in India, Haiti, and Timor-Leste. The enterprise value of the deal is €5.7 billion ($6.4 billion).

·       Maersk launched Air Cargo based on its existing integrator operator, Star Air. Billund Airport will serve as a hub.

·       CMA CGM has begun a "round-trip" block train service between Mundra Port and Sonipat inland container depot, a northern India hinterland point. The train will be operated on a weekly basis.

Well, these events are just additional proof of a long-term trend that has been initiated by the industry behemoths. The pressure on freight forwarders continues to grow from their former suppliers. The logistics sector is nervous, some of them respond with a mirror strategy – they tend to charter vessels to secure space for their services. And it seems that clients are not the beneficiary of the changes in the market – low schedule reliability, high prices, frequent congestion, and the necessity to operate assets (IKEA, Lidl, Walmart, etc.) just to secure their supply chains. Who then is the ultimate driver of the changes? 😊