Industry Reports

Published on: 12/02/2019
Merger and acquisition (M&A) volume has been heightened in the Logistics Service Providers industry in 2019 with 68 announced or closed transactions year-to-date (YTD) compared to 43 in all of 2018.  Consideration and discussion of technology innovations in a sector that has historically been people-based has increased, prompting third-party logistics (3PL) providers to seek scale through M&A in order to gain the resources needed to create their own proprietary software. 
Published on: 10/24/2019
Amid favorable industry trends, M&A activity has increased 35% year-over-year. Capstone Headwaters maintains an active Domestic Marine Services practice and this year has successfully advised both shipping services provider Vigor Industrial and Great Lakes shipping leader Andrie on their respective sales.
Published on: 08/12/2019
Merger and acquisition activity has surged in the Logistics Service Providers sector, with 44 transactions announced or closed year-to-date compared to 21 deals during the same period last year.
Published on: 07/08/2019
The Transportation & Logistics Group has released it's Q2 2019 Location-Based Logistics Executive Summary, available for download below. While the industry has been in high demand due to the expanding U.S. economy and favorable consumer spending, the macro effect of tariffs on Chinese imports remains an unknown for the industry and will potentially weigh on inventory and supply-chain costs. 
Published on: 05/15/2019
Demand for the Logistics Service Providers industry has risen as complex US regulations, the ongoing truck driver shortage, and competitive delivery times have pushed companies to utilize third-party logistics service providers (3PLs) to improve cost and efficiency. While 3PLs have collectively claimed a large share of the Transportation and Logistics (T&L) market, the industry remains highly fragmented with attractive opportunities for both strategic and financial buyers.
Published on: 03/25/2019
Water transportation remains a critical part of the US economy. Approximately 2.3 billion tons of waterborne freight were transported via the inland, coastal, and Great Lake waterways in 2018, according to Amadee+Company’s 2018 US Waterborne Freight Transportation report. With the top three players, Kirby Corporation (NYSE:KEX), American Commercial Barge Line LLC, and Ingram Barge Company, capturing just 21% of the total market share, the $16.0 billion industry is poised for continued consolidation. 
Published on: 03/20/2019
Logistics services providers are a vital component of the Transportation and Logistics (T&L) industry as shippers seek ways to swiftly navigate the increasingly complex supply chain. In 2018, third-party logistics providers (3PLs) accounted for an estimated 81% of domestic transportation, 69% of warehousing, 50% of freight forwarding and 40% of customs brokerage, according to the 2019 23rd annual Third-Party Logistics Study headed by Dr. John Langley of Pennsylvania State University. 
Published on: 03/11/2019
The robust US economy, an 18-year high in the consumer confidence index, and the growing preference towards shopping online over physical retail locations have created favorable tailwinds for the growth of the Location-Based Logistics sector in 2018. The broader Transportation and Logistics (T&L) marketplace remains highly fragmented, and companies are competing to gain a greater share of activity by offering an all-inclusive suite of services, expanding their geographic presence, introducing innovative technology capabilities.
Published on: 05/21/2018
The year 2017 was a banner year for the Freight industry.  Many records were broken and the current cycle looks like it has many more years to run.  Overall, Transportation & Logistics (T&L) is an incredibly vibrant sector.  As shown in the chart below, Capstone Headwaters’ T&L Index, which tracks leading public companies in the space, has maintained historically strong EBITDA multiples.  
Published on: 05/21/2018
One thing was abundantly clear from the record freight levels achieved in North America in the fourth quarter of 2017: equilibrium in freight markets quickly went out the window during that period!  In particular, spot rates for truckload (TL) modes of transportation appreciated much faster than brokerage outfits could adjust their own pricing to carriers.  This freight dynamic is the double-edged sword of brokerage markets and one of the reasons managers of freight endure some sleepless nights.    

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