Global Freight Forwarder Company Part 1

Freight Forwarders help shipper and consignee run their business and fulfill their desire easily. Nowadays, shippers don’t need to think how to deliver the goods to their customer. Same thing also happed to customer, they don’t need to worry how they can fulfill their needs and desire in order to get their wants.

In logistics, freight forwarder is the common term that use by both shipper and consignee. They are the middleman or agent that settle and manage the movement of the product from producer to customer. Here we will list top 25 global freight forwarder companies with a little information about the company. 

1.      DHL Supply Chain (DSC) is the world's largest 3PL and contract logistician. Contract logistics revenues were 52% of its gross logistics revenues for 2011. Contract logistics revenues for Exel (DHL Supply Chain - Americas) are $4.1 billion with 456 warehouses and 111 million square feet of space. Exel/DSC has operations of virtually every kind on every continent. Current major initiatives involve expansion in pharmaceuticals and sustainability. DHL Global Forwarding (DGF) grew through the acquisition of highly respected companies like Danzas. DHL and Danzas are strong branches in Europe and Asia. DGF currently has 31 global carrier partners with 81 contracts on a multitude of trade lanes and more than 330 gateway facilities. Its annual volume is 2.7 million TEUs and its LCL is 2 million cubic meters. There are more than 45,000 weekly point pairs for LCL globally. DGF handles 2.2 million shipments annually. DHL's scope allows its customers to more easily adjust vendor supply chains.

 2.      Kuehne + Nagel is one of the world's leading logistics companies providing logistics services from more than 1,000 locations in over 100 countries. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions. With the addition of the ACR group, contract logistics operations more than doubled in 2006 and are 50% of net revenues. The industry breakdown for its contract logistics operations is: Retail 35%, Healthcare 22%, Technological/Telecom 18%, Chemicals 7%, Automotive 6%, Fulfillment 5%, Misc. 5% and Services 2%. Kuehne + Nagel’s North American logistics network totals 12 million square feet of space across 50 DCs. There are 11 DCs in Canada (located in Toronto, Montreal, Calgary, and Edmonton), 30 single- and multi-client DCs in the U.S., six facilities in Mexico, and four Mexican border locations for transborder/customs services. Americas business for Kuehne + Nagel is 15% of net revenues. Net revenue was $994 million in 2011 for the Americas with over 50% from freight forwarding. Kuehne + Nagel has developed its own land transport management and trucking network for Europe. In 2011, the globally operating Kuehne + Nagel maintained its growth momentum in a challenging market environment and achieved good results. Net earnings were slightly above the previous year and reached with CHF 606 million a new record high. Due to the consistent implementation of the selective growth program, Kuehne + Nagel outpaced the volume growth of the market in all fields of activity. The performances of the seafreight and airfreight business units were again the main pillars of success. In both areas, high internal productivity and strict cost management compensated for the costs of investments made in technology and product development and strengthening of niche segments. Kuehne + Nagel has built good global spare parts logistics and cold chain/pharmaceutical capabilities.

   3. DB Schenker made significant purchases from 2006 to 2008 to double the size of its operations. The purchases include BAX in 2006, Spain-Tir in 2007 and Romtrans in 2008. Romtrans was the largest forwarding company in Romania with $140 million in revenue and 1,500 employees. Operations go as far east as Georgia. Spain-Tir had over 700 trucks and 16 million square feet of warehousing space covering the Iberian Peninsula. BAX added significant North America and Asia capacity. The gross revenues were each over $2.5 billion – the Americas (6.5% of total revenue) and Asia (5.2% of total revenue). German operations, including Europe’s largest rail freight and trucking operations, are over 70% of total revenues. DB Schenker’s European trucking by land transport has over 24,000 employees/owner-operators and handled 96 million shipments in 2011. Russian and Eastern European operations are substantial. DB Schenker is significantly expanding its contract logistics operations. Dave Bouchard was added to lead the Americas effort. Detlef Trefzger leads global contract logistics and is spearheading expansion efforts. North American contract logistics operations are 42% Consumer Goods, 30% High-Tech, 16% Industrial and 12% Automotive.

     4. Panalpina is a top 10 freight forwarder. It handles more than 1.3 million TEUs per year, more than 800,000 metric tons of airfreight and about 1 million tons of non-containerized break bulk cargo. It has 242 sub-contracted warehouses in 150 countries and is consistently profitable. The life blood of Panalpina is its ongoing financial stability and transparency. Its gross profit runs greater than 20%, EBITDAs (earnings before interest, tax, depreciation and amortization), EBITs and net incomes consistently run among the industry’s best. Like all of the truly strong players, these results are clearly and straightforwardly reported for each financial period. Gross profit (net revenue) runs 46% for air freight, 30% for ocean freight and 24% for logistics. Panalpina concentrates on nine verticals/segments: Automotive, Chemicals, Consumer Retail, Fashion, Healthcare, High-Tech, Manufacturing, Oil & Gas, and Telecommunications. Telecom growth was major in 2007. Its Oil & Gas operations are primarily in project logistics, which accounts for 10% to 15% of Panalpina's revenues.

      5. CEVA Logistics is one of the world’s largest logistics companies and has been the world’s largest automotive 3PL. It has a heavy emphasis on manufacturing and is expanding operations in other sectors. CEVA’s industry sectors are Automotive 28%, Consumer/Retail 23%, Technology 22%, Industrial 16%, Energy 6% and Other 5%. CEVA operates in over 170 countries. The CEVA operations we have visited get top marks. CEVA is very good at value-added support activities. Its Matrix™ software suite reflects its range of logistics capabilities, including materials management. CEVA’s core services include fulfillment centers, high-velocity cross-docks, sub-assembly, sequencing, dedicated contract transportation, and network designs/redesigns. Its revenue is split between Contract Logistics (54%) and Freight Management (46%). The Americas account for 30% of its revenues, Asia Pacific 28%, Northern Europe 24% and Southern Europe, Middle East and Africa account for the rest. Private equity owner, Apollo Management, acquired EGL Eagle Global Logistics which was rebranded as CEVA Freight Management in 2007. EGL added global freight forwarding to match CEVA’s high quality value-added warehousing, materials management and other contract logistics capabilities. In 2008, CEVA introduced its Century Partnership Account Program for 100 of its key customers selected by its Executive Board. These accounts have a global scope and represent more than half of CEVA’s total business. Fiat, CEVA's largest customer, began moving many of its operations outsourced to CEVA back in house in the spring of 2011.

      6. Nippon Express covers Japan. It’s Japan’s largest domestic transportation company and its Pelican Express operation is the largest package operation in Japan. About 90% of Nippon's revenues are from domestic Japanese operations. Its international operations in forwarding and contract logistics are tied to its Japanese base. In addition to truck-based operations, Nippon provides harbor and ship transportation, air freight forwarding and warehousing. Its warehousing is tied to its freight forwarding operations.

     7. For many years, Sinotrans Limited was completely protected by People’s Republic of China law from direct foreign competition until recently. In some ways it is a very transparent company. About 80% of revenues are derived from freight forwarding. Sinotrans handled nearly 8 million TEUs of seafreight, 397,200 metric tons of airfreight and 14.6 million international express documents/packages in 2011. Sinotrans is a joint stock limited company incorporated in the People’s Republic of China on November 20, 2002 with China National Foreign Trade Transportation Corporation (“Sinotrans Group Company”) as its sole promoter. The Company was listed successfully on The Stock Exchange of Hong Kong Limited on February 13, 2003. The Group’s core services are freight forwarding and shipping agency services with support services such as storage and terminal services, marine transportation, trucking and express.

   8. Expeditors is the largest, best run North American-based freight forwarder. Net revenues have reached $1.9 billion and produce a gross margin of 31%. 2009 was a difficult year but revenues came back in 2010-11 exceeding 2008 levels. Net revenues are 37% airfreight, 40% customs brokerage and 23% ocean freight. U.S. and Asia business account for 80% of revenues. Expeditors is the largest forwarder/NVOCC in the Asia/U.S. lane. It handles over 890,000 TEUs per year globally. Nearly 50% are shipped from Asia to the U.S. Expeditors’ European operations are primarily in airfreight and constitute about 13% of revenues. Expeditors net revenues run 40% high-tech, 33% retail, 10% pharmaceuticals, 10% automotive, 5% furniture and 2% other. Expeditors limits its participation in value-added warehousing and distribution.

      9. Bolloré's logistics business consists of SDV, a quintessentially French transportation and freight forwarding company, which generates 57% of revenue and Bolloré Africa Logistics, a major stevedoring company in Africa, which generates the remainder of logistics revenue. Bolloré Africa Logistics, which has been in Africa for over 50 years, has 250 subsidiaries, about 22,000 employees and operates in 43 countries. SDV is ranked #1 in France by the IATA and #5 in Europe. It operates in 96 countries with a large footprint in Europe, Africa, Asia and the Americas. It has 15 branches in major U.S. cities.

      10. U PS is an 800 lb. gorilla of global supply chain services. Revenues for contract logistics were $2 billion in 2011. Net freight forwarding/NVOCC/customs brokerage revenues were $4.5 billion. UPS SCS had a profitable year in 2011. UPS SCS contributes $2 billion+ per year in package business to its big brother. UPS handles about 500,000 TEUs per year as a freight forwarder. Twelve percent of containers are LCL consolidations; 40% are Asia-U.S. Forwarding revenues are 60% air and 40% ocean. UPS has 1,400 employees involved in customs brokerage: 400 in Aiken, SC, 250 in Cleveland, OH, and 750 in Louisville, KY. UPS' DCC was built from the purchases of Rollins and Overnite. More than 95% of its power units are assigned to specific customers. Average length of trip is about 400 miles. UPS' DCC has on-site managers at 900 locations. Customer operations range from 10 to 100 trucks. UPS has redesigned its supply chain operations to concentrate on high-tech, medical and some retail/consumer goods customers. These operations are highly integrated between value-added and package delivery services. Revenues per employee run $175,000 to $180,000. In March 2012, UPS announced the purchase of Netherlands-based TNT Express, the largest European express carrier (18% market share). The purchase will complete a successful expansion by UPS into Europe and add a host of coverage in Europe, the Middle East, Africa and the Asia-Pacific. The sale price is estimated at $6.8 billion. For UPS SCS, the deal opens significant market opportunities particularly in spare parts and medical logistics.

      11.  DSV is primarily a non-asset operation. EBITS are 5.6%. Nearly half of its operations are European over-the-road, its Air & Sea division makes up about 41% and Solutions (logistics) accounts for the rest. The DSV Group is Denmark’s second largest supplier of transport and logistics services. The Group originates in the Nordic countries but has established its own operations in more than 60 countries in Europe, the Far East and the Americas. Via professional and advantageous overall solutions, a worldwide yearly turnover of €5.9 billion is realized by the Group’s 21,700 employees. ABX Logistics was acquired by DSV on October 1, 2008. ABX Logistics was included it DSV’s financial statements as of that date – under the Air & Sea division

       12.  Kintetsu World Express' (KWE) largest operations within its global network are in Japan and China, with over 100 offices located in each of those countries. Nearly 50% of its business is airfreight based. Ocean freight and logistics account for 41%. Globally KWE handles over 1.1 million metric tons of airfreight and over 550,000 TEUs of ocean freight annually. KWE has a host of strategic joint ventures and affiliated companies. Its primary verticals are automotive, high-tech, and healthcare. It has 138 logistics warehouses outside Japan, with 6.4 million square feet (warehouse space in Japan is over 2.6 million square feet). Fifty-eight of those warehouses are in China. Japan and China combined generate 62% of the business, the rest of Asia and Oceania generate 17%, North America 12%, Europe 6% and other regions account for the rest. KWE listens to the “Voice of the Customer” and promotes long-term collaborative business partnerships. It’s a quality management success story.

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