Transportation & Logistics Industry Update

Key Trends In The Industry

The Industrial Internet of Things: Spotlight on Transportation

"The Industrial Internet of Things (IIoT) is attracting strong attention from large corporations and venture capital firms, with global funding growing from ~$200 million in 2011 to nearly $1.2 billion in 2015. Transportation companies have been using IIoT devices to track vehicle location, speed, and other variables for some time now and the next step will likely be to add video monitoring systems to fleets for real-time situation management, as well as ongoing security and surveillance."

What We’re Reading

Logistics | Logistics Payrolls Surging Ahead of Fall Shipping Season

"Logistics sector hiring kept up a brisk pace in July as delivery firms, trucking companies and warehouse operators added 15,600 jobs ahead of the peak shipping season. Courier and messenger company payrolls rose by 7,600 jobs in July, the biggest monthly gain since March, extending an expansion in transport operations driven by e-commerce and the home delivery of online purchases."

Trucking | ELD surprise: Costing supply chain time, not US truckers

"The electronic logging device (ELD) mandate has had a broad impact in its first eight months, but not the influence many shippers, brokers, and carriers expected. The rule’s effect on truckload capacity is seen more in emerging time constraints on shipping lanes rather than a loss of truck drivers, John Wiehoff, CEO of C.H. Robinson Worldwide, said."

Rail | A Fresh Look at Intermodal

"Shippers see a trucking sector that finds it hard to find drivers, and operates at essentially full capacity, resulting in reduced availability and higher prices. Consequently, logistics decision-makers are considering alternatives, and intermodal offers obvious appeal."

Marine | Rising economic tide boosts North American ports

"As the economy and GDP grows, so does container volume. Some North American ports are capitalizing on their competitive advantages and growing faster than the overall market. Since recovering from the global financial crisis, loaded inbound container volumes associated with North American imports have expanded at twice the compound annual rate of growth for the combined U.S. and Canadian economy."

Air | Air cargo transportation and the technology that underpins it

"The Air Freight industry is riding a wave of positive customer sentiment as online shopping continues to expand at a rate of knots. The purported e-commerce boom is fueling demand for air freight, ramping up profitability of major airlines, despite growing tensions among major players. According to the International Air Transport Association, demand for air freight in 2018 is expected to rise by at least 4%."

Public Markets Overview1

screen_shot_2018-09-13_at_2.18.22_pm.png

screen_shot_2018-09-13_at_2.18.56_pm.png

Stock Price Performance1

screen_shot_2018-09-13_at_2.19.51_pm.png

M&A Transactions1,2,3

Recent M&A Transactions

screen_shot_2018-09-13_at_2.20.52_pm.png

Recently Closed T&L Deals

screen_shot_2018-09-13_at_2.22.18_pm.png

Public Comparables1

screen_shot_2018-09-13_at_2.31.39_pm.png

screen_shot_2018-09-13_at_2.32.03_pm.png

screen_shot_2018-09-13_at_2.32.42_pm.png

screen_shot_2018-09-13_at_2.33.03_pm.png

 

1. FactSet

2. MergerMarket

3. Pitchbook

The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

 

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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.