Shipping lines seem to be strengthening their position in the market with growth strategies based on the acquisition of logistics service providers..
Close on the heels of CMA-CGM’s acquisition of a major stake in CEVA Logistics, another shipping major has announced the acquisition of a customs brokerage firm..
Maersk announced the acquisition of Vandegrift Inc., a premier US-based Customs House Broker, representing the first acquisition of the year in the fast-growing logistics sector..
Customs House Brokerage is a key component in Maersk’s strategy to become an integrated container logistics company, providing end-to-end solutions to customers..
The acquisition is said to enhance Maersk’s commercial solutions pipeline and strengthen the logistics presence in the North America market.. The deal is said to have been made official on the 8th of February 2019..
Vandegrift is a customs brokerage business established in 1951 known for high service levels. The company has evolved to meet the changing needs of international trade, industry trends and client commitments..
As per Klaus Rud Sejling, Head of Global Logistics and Services at Maersk, “Customers have been asking us to simplify the complexity of their global supply chains and reduce their risk so we analyzed the North America market to see who had the best reputation in the brokerage/trade compliance industry and deliver immediate results to all vertical segments of our account base.
Our findings identified Vandegrift’s top tier, professional service provider reputation, strong operating platform of services, stellar people and culture ideally fit our expectations and commercial approach as One Company,”.
Based in Clark, New Jersey USA, the core business of Vandegrift is customs brokerage, which is different from that a freight forwarder..
Commenting on the news, Narin Phol, Regional Managing Director of Maersk North America said “Vandegrift’s expertise and reputation enables us to place a trusted advisor in front of our customers to design and build individualized Customs Brokerage and Compliance programs that identify risk and provide solutions.
This customer advocate role, coupled with our supply chain assets and global scale creates winning end-to-end solutions for companies intent on competing better in 2019,”..
“Joining Maersk represents an important opportunity to grow our Customs Brokerage business by combining our professional services into one stronger, seamless team for customers.
Maersk’s role in global trade is truly special and we are thrilled to join them on their journey as the integrator of container logistics,” said Mitch Scher, CEO of Vandegrift.
Vandegrift is also said to specialize in Trade Compliance with a team of former U.S. Customs and Border Protection (CBP) officials as well as individuals with backgrounds in customs brokerage, retail and law..
Jeff Hammond, Global Head of Customs Brokerage for Maersk and a licensed Customs Broker said “Adding Vandegrift’s depth to our value proposition creates a game changer for our North America customers.
Now we can offer significantly more Customs Broker expertise, capacity and wider scope of solutions to help our customers succeed.
We’re excited to show customers the difference our stronger company can make in their supply chains in 2019 based on the people and system expertise we now offer.”
“Transportation costs and trade compliance risk management are a strategic issue for our customers. We believe we have an opportunity to better design a more holistic customs brokerage and trade compliance plan and overarching strategy for customers.
This will set them up for long term success, improve their cost and risk structures and use our combined team expertise, digital tools and process improvement thanks to this acquisition,” Mr. Sejling further added.
What is your opinion on the acquisition of these logistics service providers by shipping lines..??
Are they tramping on the toes of the traditional logistics service providers or will this benefit the market..??
Good Afternoon
Global Shippers are now a days not interested to enter into individual contracts location-wise, rather they want a Company who will take the entire responsibilities of moving cargo from one end to the other, totally taking upon themselves the entire respinsibilities in the total supply chain management chain.
Feel, the recent acquisitions by Maersk and CGM is towards meeting the end customer needs in line with what is mentioned above.
In good old days, Shippibg lines were focusing only in having more and more modern and bigger ships and with the dynamic changes in world trade, shipping lines realised that it is better to invest in pre leg and oncarriage leg as well, since most of the contracts nowadays are door to door basis.
All the very best
Warm regards
K Venketaraman MICS UK
Mobile 9246190980
I think the carriers are listening to their customers, finally creating a true one-stop-shop with end to end service – the important piece is integrating all legs of the supply chain and providing the true transparency to the BCO, that will be the big game changer of who gets there first.
End-to-end logistics is the name of the wheel today in which road, rail, water transportation and intermodal terminals are mere cogs seamlessly bound together by robust communication systems. Customs brokerage capability at origin and destination further enhances the efficacy of logistics solutions. Hence the acquisition of Vandegrift Inc is a strong statement of commercial and service intent by the industry leader.
All is the game of providing every service related to logistics under one umbrella. CMA CGM invested in Ceva for road + ocean; Maersk in Vandergrift for customs service + logistics.