Many companies in the industry are distressed. Decreased demand for air cargo space, lower truckload freight rates and blanked ocean sailings have contributed to a decline in business activity.

The high level of activity that was seen among logistics companies during the COVID-19 pandemic has fallen considerably. Consumer spending remains low, driven by market uncertainty and concerns around interest rates.

Despite the above, year-to-date the industry’s M&A count remains strong relative to the broader market. The industry remains on track to meet the trailing three-year average of M&A deal volume.

The M&A transaction volume is driven primarily by the high demand for high-value logistical solutions. The market’s outlook on the industry is positive, and robust transaction activity is expected to continue as the industry further consolidates.