UPS Takes Share from Expeditors as Deutsches Duke It Out, But At What Cost? — Panjiva


UPS Takes Share from Expeditors as Deutsches Duke It Out, But At What Cost?

Corp - Forwarders 160 Mode - Seaborne 1286 U.S. 3362

The freight forwarders had another month of handling growth on U.S.-inbound, seaborne freight routes in October. Panjiva data shows total shipments handled climbed 3.5% on a year earlier. That largely reflects an increase in traffic from Asia, as outlined in Panjiva research of November 8, and will likely result in a record year for handling.

UPS did the best out of the top 10 NVOs, with a 26.5% rise in traffic on a year earlier reflecting strength from its Asian unit. That likely allowed it to take market share both from Expeditors, which grew by just 1.6%, Deutsche Post-DHL (which saw a 2.8% drop in handling) as well as Asia specialists such as Pyramid (down 9.3%).

However, Expeditors loss of volumes may reflect its continued discipline with regards to trading off market share for profitability. It maintained the highest profit margin among the forwarders covered by Panjiva in the third quarter, raising questions as to whether UPS has traded in the other direction.


Chart shows change in U.S.-inbound, seaborne shipments by NVOCC in last month on a year earlier and vs. the prior month Bubble width indicates relative number of shipments. Colors for clarity only.  Source: Panjiva

UPS expansion has not changed the forwarders’ league table, however. It had a 1.4% market share in September, well behind CH Robinson’s 1.8% and Expeditors’ 3.0%. The rise of DB-Schenker has been more notable, however. It has expanded its market share to 1.1% from 1.0% a year earlier, leading it to fourth place, displacing DP-DHL to fifth and Apex to seventh respectively.

The continued battle for market share shown by UPS and DB-Schenker’s rise provides another reason for mid-sized operators to consider consolidation as a route to growth. Both Panalpina and DSV recommitted to making acquisitions during their recent quarterly conference calls, though it has been NYK’s purchase of Yusen Logistics that has gotten the ball rolling.


Chart shows ranking among NVOCCs last month (horizontal axis) and change vs. rank a year earlier (vertical)  Source: Panjiva

PANJIVA RESEARCH is a service provided by Panjiva, Inc. ("Panjiva") to relevant global subscribers, and are deemed to be Panjiva "Services" subject to the Panjiva Terms & Conditions of Use. Information contained within or made available via the Services is for informational purposes only and nothing in the Services shall constitute or be construed as an offering of financial instruments, or as investment advice or recommendations by Panjiva, Inc. or its affiliates of an investment strategy or whether to "buy", "sell" or "hold" an investment. The Services may include views and commentary about customers of Panjiva. No aspect of the Services is based on consideration of your individual circumstances, and you should determine on your own whether you agree with the information contained within or made available via the Services. Employees involved in Panjiva Research may hold positions in securities analyzed or discussed in the Services. Panjiva does not make any express or implied warranties, representations, endorsements or conditions with respect to the Services and the information contained within or made available via the Services, including without limitation, warranties as to the usefulness, completeness, accuracy, currentness, reliability or sufficiency of any information (including, without limitation, conclusions, statements, opinions, estimates, forecasts or projections of any kind) and expressly disclaims any implied warranties. Neither this disclaimer nor any of its contents may be forwarded or redistributed without the prior written consent of Panjiva. © 2019 Panjiva, Inc. All Rights Reserved.