Transportation & Logistics Industry Update
Harris Williams Deal Spotlight
Carolina Marine Terminal
Harris Williams advised Carolina Marine Terminal Inc., a leading privately owned port facility, acquired by Transportation Infrastructure Partners, a joint venture between Savage and Ridgewood Infrastructure.
What We’re Reading
Logistics | Despite Volatility, 3PL eCommerce Business Flourishes
"E-Commerce continues to be the most rapidly growing third-party logistics (3PL) segment as retailers rely on Amazon and third-party logistics providers to help manage omnichannel and e-Commerce operations...U.S. 3PL e-Commerce revenue reached $43.4 billion in 2019 and is expected to grow 28% through 2020, driven by increasing e-Commerce purchases during the pandemic and companies continuing to outsource versus building internal fulfillment operations."
Trucking | Trucking Fares Better Than Overall Economy, Experts Say
The trucking and freight economy appears to be doing better than the overall U.S. economy as fleets adjust to contend with supply chain changes caused by the COVID-19 pandemic. The latest survey from DAT Solutions confirms the belief that the industry is more than holding its own during this pandemic-induced recession, with 2,000 trucking jobs added according to the most recent Department of Labor jobs report.
Rail | AAR: “Rail Traffic Generally Trending in the Right Direction”
"After the Association of American Railroads (AAR) reported on U.S. rail traffic for the week ended Aug. 1, 2020, as well as for July 2020, there appears to be hope in traffic volumes returning to pre-COVID-19 levels. 'Rail traffic, like the overall economy, is generally trending in the right direction.'"
Marine | Ship Orders Collapse; Will Rate Boom Follow?
"Mid-COVID-19, the bull case for rates is even more about plunging newbuild orders than before. There will be a lot fewer vessels on the water in 2021, 2022 and beyond than previously thought....Container ship newbuild capacity is down to just 9.4% of capacity on the water, the first time in 20 years the newbuilding pipeline fell below the 10% threshold."
Air | Air Cargo Market: Brace for Big Rate Hikes
"The air cargo market is building up pricing momentum toward the fourth quarter, putting all-cargo carriers and airlines with cargo-only passenger freighters in a strong position relative to shippers...Export demand to the U.S. is very high according to freight data aggregators and logistics companies. Overall, rates from Asia to North America and Europe are rising."
