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Scan Global Logistics targets the top 20 with deal to acquire OIA Global

Scan Global Logistics has signed an agreement to acquire OIA Global in a deal that it said would be the largest investment in its history and place it among the top 20 freight forwarders in the world. The proposed acquisition is expected to strengthen Scan Global Logistics' presence in the US and other key markets, and broaden its supply chain capabilities available to customers beyond traditional freight forwarding, making it easier to manage increasingly complex supply chains. Founded in 1988, OIA Global is based in Portland, Oregon and provides end-to-end supply chain and logistics solutions, while it employs more than 1,200 people across more than 60 offices in over 30 countries. The company's capabilities span freight forwarding, customs brokerage, contract logistics, project logistics, 4PL, packaging design and materials management. Allan Melgaard, global chief executive of Scan Global Logistics, commented: "The acquisition of OIA Global marks a significant milestone for Scan Global Logistics. "As our largest investment to date, it will place us among the world's top 20 freight forwarders, strengthen our position in key markets, and expand our capabilities across the supply chain. "Together with OIA Global's talented people and experienced leadership team, we will create a stronger, more resilient platform for future growth." Jeffery Barrie, chief executive of OIA Global, added: "What stood out to us about Scan Global Logistics was not only the scale of the organisation, but also the way it does business. "Both companies are built on strong customer relationships, entrepreneurial thinking, and empowered local teams. These shared values provide a strong foundation for the future and make SGL the right partner for OIA Global." The transaction is subject to customary regulatory approvals, and the companies will operate independently until the deal is closed. This is expected in the first quarter of 2027. Scan Global Logistics has been expanding rapidly in recent years through acquisitions and new office openings. Last year, the company added new offices in India, Egypt, Turkey and Tanzania. Acquisitions in recent years have included ITN Logistics Group, Foppiani Shipping & Logistics and Brazil-based BLU Logistics. As a result of the acquisitions, the company became one of the world's top 25 airfreight forwarders in 2024 and maintained its position last year. In order to become one of the top 20 airfreight forwarders, the company's annual airfreight tonnage would probably need to exceed at least 280,000 tonnes, which is what 20th-placed CH Robinson handled last year. OIA has also been expanding this year and in April announced the acquisition of US-headquartered international freight forwarding and customs brokerage firm, Cargo Services, Inc.

FedEx to build on jet engine demand growth with new aerospace product

FedEx has launched a new product to cater for the transport of aircraft engines and aerospace components following its recent wins in the sector. The express giant said its new dedicated engine logistics solution is designed to move aircraft engines and oversized aerospace components with "speed, precision, and reliability". The company said that aerospace organisations are facing increasing maintenance demand, supply chain complexity, and are also under pressure to maximise fleet availability. "The solution helps customers keep critical operations moving while reducing disruptions associated with engine transportation," FedEx explained in a press release. "When an aircraft engine needs to move, every hour matters and every detail counts," said Marcus Balzereit, president, FedEx Logistics. "A delayed engine can impact flight schedules, aircraft availability, maintenance schedules, and operational commitments across the aviation industry. With our own airline DNA, we understand firsthand the complexity and urgency behind keeping aircraft flying." The service includes a dedicated team to manage maindeck engine quotations and oversee shipment execution from origin to destination. They will also ensure regulatory compliance, customs coordination, and end-to-end accountability throughout the shipment lifecycle. FedEx added that its digital platform would streamline quotation generation, automate communications and securely manage shipment documentation. "At a time when the aerospace industry is managing extended lead times, parts shortages, and growing pressure to maintain fleet readiness, reliable transportation of critical assets has become increasingly important," FedEx said. "This integrated approach to engine logistics helps customers strengthen supply chain resilience, improve shipment visibility, and minimise the operational impact of maintenance-related delays." Recent wins The launch of the new aerospace product comes shortly after FedEx highlighted growth in air cargo shipments from traditional parcel customers, including aircraft engines. During the company's third-quarter results call, chief executive Raj Subramaniam said: "Our expanding capabilities across key verticals are enabling us to address more of our customers' logistics needs and unlock airfreight demand from traditionally parcel-centric customers," he said. "For example, we drove a 15-fold increase in aircraft engine moves and won new airfreight business with an AI data centre customer after a more than 40-year largely parcel-centric relationship. "Differentiation is increasingly centred on deep customer relationships and tailored service experiences, positioning us to capture more freight volume as we address customers' needs beyond parcel."

Transpacific airfreight rates take off in October

Airfreight rates on the transpacific trade lane increased rapidly during October as the air cargo industry headed towards its traditional fourth-quarter peak season. Figures from data provider TAC Index show that average airfreight rates - a combination of spot and contract - on services from Hong Kong started October at $7.16 per kg but ended the month at $8.17 per kg. Compared with last year, rates on the trade ended the month 38.7% up on last year's levels. Meanwhile, for the month as a whole, airfreight rates from Hong Kong to North America averaged $7.64 per kg, up 34% on the year-ago level and ahead of the $7.02 per kg recorded in September. The increase as the month progressed pointed towards a busy peak season on the transpacific, a trade which was already booming due to strong demand for AI/data centre-related shipments. Figures from IATA show that in September, Asia-North America volumes were up 17% year on year. Rates will also have been affected by sky high jet fuel prices as a result of the conflict in the Middle East. Jet fuel is said to make up around one third of an airline's costs and IATA/Platts data shows that in the week ending 23 October jet fuel prices were up 118.5% compared with last year. Prices have risen in recent weeks, with TAC suggesting the Ukraine war has also been driving up prices. "Rates have been at elevated levels most of the year ever since conflict in the Middle East between the US, Israel and Iran erupted in late February," TAC said in its weekly round-up. "With Ukrainian strikes on Russia also hitting global production of oil products, the 'crack spread' has also widened." Rates from Hong Kong to Europe have also been climbing in line with peak season demand. In October, the average monthly rate stood at $5.31 per kg, which is 15.7% up on a year ago and an increase on the $4.80 per kg registered in September. Demand growth on the Asia-Europe trade has weakened in recent months as a result of the European Union's €3 charge for packages with a value of less than €150 to tackle the rapid rise of e-commerce volumes heading into the bloc. A further €2 handling charge is set to be added on 1 November. According to IATA, Asia-Europe volumes grew by 6% year on year in September. Looking ahead, TAC is expecting further rate increases as the peak season continues. "With demand yet to reach the top of peak season highs and jet fuel supplies so tight, sources suggest that pressure for rates to rise further is still very much increasing," TAC explained.