www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. TRANSPORTATION & LOGISTICS INDUSTRY UPDATE │ JULY 2015
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TRANSPORTATION & LOGISTICS · 6/17/2015 Logistics Orbis Logistics, Inc. Operates warehouses in four states and provides final-mile delivery and distribution services in the Midwest
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www.harriswilliams.com
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
TRANSPORTATION & LOGISTICS
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INDUSTRY UPDATE │ JULY 2015
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www.harriswilliams.com
LOGISTICS | INVESTMENTS MADE TO BUILD INTEGRATED COLD CHAIN
Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
TRUCKING | TOP 100 CARRIERS GET MORE SELECTIVE WITH FREIGHT
The nation’s largest for-hire carriers are becoming more selective about the freightthey haul, taking steps to minimize delays and focusing on better utilization ofequipment and personnel as strong demand and a shortage of drivers continue tostrain capacity. Tight capacity, however, does not necessarily harm growth withinthe trucking industry, as the number of companies with annual revenue of at least$1 billion increased to 35 from 30 the previous year.
Transport Topics
MARINE | SHIPPERS VIEW ALLIANCES AS BULWARKS FOR COMPETITION
The grouping of the world’s largest container lines into four large alliances coveringall east-west trades has yielded an unexpected result. Shippers no longer viewalliances as vehicles for rate collusion but as vehicles to “prop up” smaller lines thatare finding it increasingly difficult to compete with the three largest carriers. BruceCarlton, president and CEO of the National Industrial Transportation League, noted“with some time to observe actual performance, there’s less to be afraid of thanwe once thought.”
Journal of Commerce
AIR | AIRLINES' PROFITS IMPROVE BUT NOT IN CARGO
The International Air Transport Association (IATA) released data for global air freightmarkets showing that growth continued to slow throughout May. Tony Tyler (IATACEO) considers “some economic fundamentals still point to a rebound… but wehave to recognize that business confidence is flat and export orders are indecline.”
IATA
RAIL | INTERMODAL SEES HIGHEST-VOLUME MONTH IN HISTORY
The Association of American Railroads (AAR) reported that intermodal trafficnumbers reached a historic monthly high at 1,117,149 containers and trailers,representing a gain of nearly 4% for the month. John T. Gray (AAR SVP of Policyand Economics) believes “the growth in rail intermodal units is one of America’sbest transportation-related success stories” and “2015 will almost certainly setanother annual record, breaking the record set last year.”
Railway Age
Second-quarter economic growth in the U.S. is generating strong demand fortransportation labor. Employers, however, are having a difficult time satisfying thenew demand. With 269,000 new job postings in May, the industry is experiencing a59.2% year-over-year increase in transport job openings. As unemploymentcontinues to drop, approaching 5%, transport employers continue to experiencedifficulty filling openings, only satisfying approximately 65% of open positions in theindustry.
Journal of Commerce
LOGISTICS | U.S. TRANSPORT JOB OPENINGS SPIKE 59 PERCENT
LOGISTICS | 26TH ANNUAL STATE OF LOGISTICS
The logistics industry as a whole experienced the best year in freight transportationsince the Great Recession, primarily derived through increased efficiencies thatdrove U.S. economic growth. Capacity issues, however, persist, causingapprehension from shippers. Concerned with rate hikes, carriers continue tocreate strategic partnerships. Logistic expenses were, however, held to historicallylow levels as a percentage of GDP, highlighting the industry focus on efficiency.
MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)
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OUR GROUP
Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.
OUR FIRM
TRANSPORTATION & LOGISTICS
INDUSTRY UPDATE │ JULY 2015
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Logistics Providers
Agility Public Warehousing Company KSC $2,197 $2.14 (8.2%) (17.5%) $2.89 74.2% 8.5x 10.2x 8.5x 8.3x 7.7x
Air Transport Services Group, Inc. 987 10.28 (1.2%) 26.6% 10.96 93.8% 5.2x 5.0x 5.3x 5.5x 5.2x
Atlas Air Worldwide Holdings, Inc. 2,782 50.83 (7.1%) 41.0% 59.47 85.5% 8.1x 8.4x 7.5x 8.1x 7.4x
Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
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