DSV-Panalpina merger brings 'economies scale and improved rates'
THE April US$4
THE April US$4.6 billion DSV-Panalpina merger, creates one of the world's largest forwarders, with revenues of DKK118 billion (US$17.6 billion) and a workforce of 60,000, a combination that is likely to improve rates and service solutions, says IHS Media.
Denmark's DSV and Switzerland's Panalpina offer similar, complete solution portfolios. There are also complementary aspects where DSV that will offer improved road shipments, while Panalpina will improve air freight, said the report.
'This synergy will provide DSV-Panalpina with a more complete portfolio of supply chain solutions, which will be a cheaper option for shippers than multiple providers,' it said.
'Shippers will also be able to reduce costs thanks to DSV-Panalpina's increased global reach, having further access to countries through the new entity. This will again reduce the need to use multiple providers.
'The volume possessed by DSV-Panalpina will drive down rates for shippers. Taking the two company's volumes in sea freight alone as an example, the move will see each of their volumes double to close to three million TEU per year,' said the IHS report.
'Considering that both DSV's and Panalpina's volumes are already impressive, this move will make the new entity a major player in the freight forwarding industry and an attractive option for shippers,' it said.