Quarterly Industry Snapshot
The COVID-19 pandemic has driven the logistics industry’s outperformance in the equity markets and record M&A activity. However, more recently, the war in Ukraine and high energy prices have had a chilling effect.
Supply-chain fluidity improved overall despite continued shutdowns in China. However, port congestion and logistics costs have remained markedly above pre-COVID levels. Widespread labour shortages and facility constraints have increased inflationary pressure.
Industry participants are seeing strong customer demand coupled with finite capacity across most sub-sectors. Recent market dynamics and technological innovations such as robotics, autonomous vehicles, and the growing use of drones in transportation, have accelerated this industry’s reinvention.
Noteworthy transactions included: Shopify's acquisition of Deliverr, which strengthened Shopify’s position versus Amazon. DB Schenker’s acquisition of asset-based carrier USA Truck for US$473 million marks a significant increase in their US presence.