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DSV Panalpina will claim 6% of forwarding market, become 3rd largest forwarder globally, according to new Ti report

Friday, 14 June 2019 | 00:00

The most high-profile development in the forwarding sector in the past twelve months has been the acquisition of Panalpina by DSV. The merging of the two will produce the world's 3rd largest forwarder by revenue, according to Ti data, and a rival for market leaders Kuehne + Nagel and DHL Global Forwarding & Freight.

The reasons for the merger are fundamentally not complicated. Panalpina's profits, if anything, have fallen since 2014, while in contrast DSV's more than doubled. DSV has grown through a combination of acquisition and organic growth. It has been highly successful at integrating its, often large acquisitions, rapidly. Therefore, it was logical that DSV continue this approach, while Panalpina was the right size and offered reasonably complementary in terms of geographical and vertical sector positioning.

The new analysis goes on to reveal the top 20 forwarders globally account for 57.5% of the market. Forwarding is an easy market to enter, but consolidation amongst the world's largest players, dedicated vertical sector offerings and investments in IT systems have all helped the largest players build significant scale and market share. When DSV Panalpina comes to the market as a combined entity in late 2019, the top 5 players will account for more than 27% of the global marketplace.

“As the first half of 2019 draws to a close, the forwarding sector remains the focus of rumours about further acquisition activity by the larger forwarding companies. The rationale is generally economies of scale or the need for greater exposure to global markets, either geographic or vertical. Another rationale, less loudly articulated, is a fear of being left behind. With the new DSV Panalpina set to be a credible contender rival to both Kuehne + Nagel and DHL Global Forwarding, Freight in almost all markets, other large forwarders will be feeling pressure to keep up,” said Nick Bailey, Head of Research at Ti.

Ti's Global Freight Forwarding 2019 report examines key trends in the global forwarding market, including:

-The state and disruption of the global forwarding market.
-The threats and opportunities tech-enabled forwarders face over the next 5 years.
-The changing role of freight forwarders in global supply chains.

The report contains:

-Market sizes and forecasts of global, regional and country level air and sea freight forwarding markets.
-Detailed analysis of the present and future of freight forwarding.
-Comprehensive profiles of the largest freight forwarders.
-An evaluation of technology in freight forwarding.
-Analysis of Ti's Online Forwarding Market survey by Ti's CEO, John Manners-Bell.
Source: Transport Intelligence (Ti)

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