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..??