EnThe non-vessel-operating common carriers (NVOCCs) running U.S. inbound routes had a bumper month in July, Panjiva data shows. Shipments handled increased by 5.7% on a year earlier, largely as a consequence of increased Asian traffic – particularly from China and Vietnam – as outlined in Panjiva research of August 7.
The two largest shippers, Expeditors International and CH Robinson’s Christal, led the way with an expansion of 11.5% and 9.7% respectively. The former may be accepting lower rates to achieve this, as implied by their second quarter revenue report. Among the second tier players Panalpina was the only integrated forwarder to lose out, with volumes having fallen 4.3%. DSV meanwhile increased 16.1% on a reported basis, but stripping out the effect of the UTi acquisition volumes fell 1.1%.
Source: Panjiva
The top five shippers are unchanged vs. the prior year, but below that the change in rankings has been significant. Putting aside DSV’s acquisition of UTi, the biggest move has been DB-Schenker’s two place increase to fifth. The biggest loser has been Shipco, which has seen a steady drop in volumes, though in the month of July its volumes rose 9.4% vs. June – a fightback may be underway.
Source: Panjiva
DSV’s declining volumes, and disparity in growth rates between truly global, and mostly regional, operators makes its move to make further investments unsurprising. Management have indicated an intention to continue to consolidate the industry, with investments over $1 billion.
Panjiva analysis of over 2,300 shipper-country pairs shows targets with a strong market share in Asia and Latin America (Apex Shipping, Orient Express, Honour Lane and Pyramid Lines) would make sense strategically. Delivering such deals given the prevalence of private companies and strong shareholders is another matter.
Source: Panjiva
