Latest news with #freight
Forbes
2 days ago
- Business
- Forbes
Expanding Horizons: NX Group's Role In Global Logistics
In recent years, pandemic-related port closures, the conflict in Ukraine and now the threat of new U.S. tariffs have resulted in significant challenges to global supply chains. But behind the scenes, logistics companies are ensuring that important shipments are getting to where they need to be on time. One of them is NX Group, which is leveraging leading-edge technology and strategic acquisitions to establish itself as one of the top five players in the international freight industry. NIPPON EXPRESS HOLDINGS President Satoshi Horikiri talks about the company's growth in the global market. NIPPON EXPRESS HOLDINGS President Satoshi Horikiri aims to make NX Group one of the top five players in the international freight industry. A Foundation Built on Trust and Technological Advances Established in 1937, Nippon Express, the core company of NX Group, has roots that go back to 1872, a time when Japan began a rapid program of modernization. The company was founded by merging rail and other transport companies, immediately giving it a multimodal advantage. After quickly expanding across Japan and internationally, mainly in B2B logistics, NX Group built a reputation as a precision-oriented, flexible partner trustworthy enough to ship masterpieces like the Mona Lisa and the Venus de Milo around the world. As of 2023, NX Group has a significant 25% share of Japan's air exports, and is currently ranked 8th in air freight, 6th in sea freight and 6th overall. 'Our strength lies in our leading presence in Asia, with Japan as the core of our operations,' says Horikiri. 'Asia accounts for a significant portion of global cargo volume, with some 60–70% of global cargo originating from the region. Another source of strength is our combination of freight forwarding and logistics. Based on account management, we can provide the right solution for every customer.' NX Group has introduced warehouse AI and cloud-connected autonomous mobile robots that transport inventory to loading bays. Supporting this position is NX Group's deployment of leading-edge logistics technology. It has introduced warehouse AI and cloud-connected autonomous mobile robots (AMRs) that transport inventory to loading bays. NX Group has established systems that provide real-time cargo tracking and digital monitoring of temperature and impact on cargo, as well as forklifts with remote, autonomous and manual operating modes. 'We have started a pilot project called the NX Universal Harmonious Work Warehouse, a place where people of all abilities can work in a supportive environment that incorporates short-distance mobility solutions. This is the first phase of a workplace evolution to create a better environment for everyone,' says Horikiri. 'I believe these innovations have boosted distribution efficiency and helped NX Group better serve its customers.' NX Group has started a pilot project called the NX Universal Harmonious Work Warehouse, where people of all abilities can work while using short-distance mobility solutions. Leveraging M&As to Fuel Customer Growth With a focus on key industries, including semiconductor, healthcare and automotive, NX Group now includes over 300 companies and more than 78,000 employees working in 57 countries and regions all over the world. Over the past decade, NX Group, which values a customer-oriented approach, has grown into a company that can create even greater value by attracting companies with the same philosophy to join the group. 'The goal of this strategy is not only to increase global scale but also to support customers as they enter new markets,' says Horikiri. 'Mergers and acquisitions increase purchasing power for transportation, leading to expanded capabilities and more solutions for customer challenges.' One example is expanding a network in Eastern Europe and a customer base outside Japan. In 2024, NIPPON EXPRESS HOLDINGS acquired cargo-partner, an Austrian logistics company with a strong presence in Central and Eastern Europe. Established in 1983, cargo-partner specializes in air and ocean freight forwarding and offers services in rail and truck transportation, as well as contract logistics. NX Group now includes over 300 companies and more than 78,000 employees working in 57 countries and regions all over the world. Commenting on the value of this acquisition Horikiri says, 'It brings key synergies: a strong transportation network in Central and Eastern Europe, complementary customer bases for cross-selling and enhanced efficiency through combined cargo volumes, integrated operations and shared back-office functions.' In another example aimed at increasing competitiveness and efficiency, NIPPON EXPRESS HOLDINGS acquired the Simon Hegele Group, a German contract logistics provider, in 2025. Founded in 1920, Simon Hegele specializes in logistics services for the healthcare industry and has over 2,800 employees and operations across Europe, the U.S., South America, Asia and Australia. 'Simon Hegele has built a robust customer base by leveraging its specialized logistics platform,' says Horikiri. 'It has strength in healthcare and transportation networks within the EU. By integrating with NX Group's forwarding functions, it will create synergies and provide end-to-end services from transportation to delivery and installation.' 'Cargo-partner and Simon Hegele are very customer-oriented companies whose corporate culture resonates with our DNA,' Horikiri says. 'We're confident that the service and quality we have built in Japan, our home market, will be welcomed by Western companies. Recently, foreign companies that used our services in Japan really liked them and expressed a desire to use them globally.' As NX Group brings its Japanese sensibility of attention to detail, precision logistics and innovative end-to-end solutions to serve a broader scale of businesses overseas, it will leverage both its technological expertise and its ability to deal with the unexpected. 'M&As increase purchasing power for transportation, leading to expanded capabilities and more solutions for customer challenges,' says Horikiri. Maintaining Focus on Customer-Oriented Solutions Recently, due to geopolitical risks, flying over Russia and sailing through the Red Sea have become challenging. Even outside of conflict zones, there are cases where regulations in various countries are suddenly tightened, or domestic disasters cut off roads. Logistics is a global industry, and irregular situations occur constantly. "NX Group's motto, 'We find the way,' reflects the company's commitment to overcoming logistics challenges and providing optimal solutions tailored to each individual customer," says Horikiri. "It shows our commitment to finding the best transportation solutions, meeting our customers' challenges and seeing them through. This customer-centric approach is what drives NX Group's global business expansion and enables us to provide high-quality services that are closely aligned with our customers' needs." To learn more about NX Group, click here.
Khaleej Times
3 days ago
- Business
- Khaleej Times
UAE consumers face price hike as shipping costs surge after China-US export rush
Shipping costs have surged dramatically in recent days, doubling due to a container shortage triggered by an export rush from China to the US. This followed a temporary easing of tariffs between the US and the world's second-largest economy. Industry executives warn that businesses in the UAE are unable to absorb the entire increase in freight charges and are therefore passing part of the cost onto consumers. 'Shipping costs have more than doubled over the past 10 to 15 days. We used to pay between $1,000 to $1,400 per container, but now we're being quoted $2,500 to $3,000,' Anis Sajan, Vice-Chairman of Danube Group, in an interview with Khaleej Times. 'This sharp rise is a direct result of the sudden surge in shipments after the US temporarily relaxed tariffs on Chinese goods.' Despite the steep rise in prices, Sajan noted that container availability remains limited. 'In some cases, we're willing to pay double, but we still can't secure containers. Most vessels and containers have been redirected to the US, leaving Middle Eastern importers struggling to find capacity.' The current shipping disruption follows a period of uncertainty after former US President Donald Trump announced tariff hikes on Chinese imports, initially raising them to 145 per cent before reducing them to 30 per cent. The escalating trade tensions caused turmoil in global stock markets and commodity prices, amid fears of a broader slowdown in global trade. In April, the World Trade Organisation projected a 0.2 per cent contraction in global merchandise trade volumes due to the ongoing trade war and associated policy uncertainties. According to the Drewry World Container Index, the cost of shipping a 40-foot container rose from $2,076 on May 8 to $2,508 by May 29 – a 21 per cent increase in just three weeks. The surge is attributed to a renewed wave of US-bound shipments following the US administration's temporary suspension of tariff hikes. 'Shipping rates spiked abruptly when the US paused or delayed its tariff increases on Chinese goods. This triggered a flood of shipments to the US, all at once, causing a shortage of vessels and containers. It wasn't a gradual rise – it was driven by panic and urgency,' Sajan explained. Impact on UAE Consumers The UAE and China maintain strong trade ties, with bilateral trade expected to reach $100 billion in the coming years. The UAE imports a wide range of products from China, including electronics, machinery, vehicles, toys, sports equipment, furniture, lighting, chemicals, footwear, and apparel. In a bid to enhance trade relations, China has initiated talks with the UAE for a potential free trade agreement, UAE Minister of State for Foreign Trade Thani Al Zeyoudi told Reuters last week. While tariff tensions had been brewing for some time, Sajan said the current shipping chaos began only after the US unexpectedly paused its tariff hikes, giving American buyers a brief window to place large orders at pre-tariff rates. This overwhelmed global shipping networks. 'It's been especially difficult for small and medium-sized traders. Larger firms like ours are able to manage using existing inventories and established logistics networks, but even we're struggling to secure containers. For smaller traders, the costs are prohibitive, and delays are damaging supply chains and profit margins,' he said. Sajan acknowledged that the rising shipping costs are ultimately being passed on to consumers. 'Ultimately, the end consumer pays the price. If freight costs rise, businesses can't absorb the entire increase. We pass on a portion to our clients, who then adjust their pricing accordingly — it creates a ripple effect. So yes, UAE residents will likely see price increases in certain goods, particularly imported building materials and essential items,' he said. Looking ahead, Sajan anticipates a gradual decline in freight rates once the immediate US demand subsides and global container circulation begins to normalise. 'But that could take at least 2 to 3 months — and only if there are no further disruptions. The market is extremely sensitive right now. Any new geopolitical event or supply chain disruption could prolong the situation,' he warned.
Bloomberg
5 days ago
- Business
- Bloomberg
Tariff Truce Keeps China-US Trade Flowing Across the Pacific
The ceasefire in the tariff fight between the world's two largest economies is encouraging trade across the Pacific, holding up freight prices three weeks on, even as container bookings have begun to slow. Thanks to the reprieve, which began earlier this month, the price of shipping a forty-foot equivalent unit from Shanghai to Los Angeles notched its biggest relative weekly gain this year, rising by nearly 17% to $3,738. The price per container in the week through May 29 was still almost a third below this year's peak in January, but above a late-March nadir of $2,487, just before President Donald Trump's 'Liberation Day' announcement.
Yahoo
6 days ago
- Business
- Yahoo
FedEx's Strategic Moves: A Deep Dive into Its Undervalued Potential
Most people don't give FedEx much thought until a box shows up at the door. It's been part of the background of the global economy for decades, quietly delivering millions of parcels without much fuss. But just because it feels familiar doesn't mean it's standing still. In the last few years, FedEx has had to do some serious course-correcting. Soaring input costs, cooling demand, tough talks with labor, and rivals pushing harder than ever it hasn't been smooth sailing. Now, they're making a bold move: spinning off the freight division. It's not just a logistics shuffle it might change how Wall Street sees the whole company. Let's be clear this isn't a stock that's going to 10x overnight. FedEx is a capital-intensive, slow-turning machine. But that doesn't mean it's dead money. The core business is stabilizing, margins are creeping higher, and the freight spin-off could be the kind of structural shake-up that gets investors to reassess what this company is really worth. Right now, the stock's not making headlines. It's not flashy. But sometimes, that's when the opportunity shows up. If management sticks the landing and market conditions don't derail the plan, FedEx might just be setting the stage for a quieter but very real comeback. FedEx's recent third-quarter results suggested that its transformation is quietly taking hold. Adjusted EPS rose to $4.51, up from $3.86 the prior year, while revenue increased 2% to $22.2 billion. The improvement in adjusted operating income, which reached $1.51 billion, was largely driven by FedEx's cost-cutting DRIVE program and stronger yields across segments. Margins also showed modest improvement, and the company reduced its capital expenditures for the fiscal year to $4.9 billion, underscoring a sharpened focus on operational efficiency. Management revised its full-year adjusted EPS forecast to a range of $18.00 to $18.60, down from the prior $19.00 to $20.00. That downward guidance reflects cautious realism amid a sluggish U.S. industrial economy and macro uncertainty. Still, it hasn't stopped FedEx from moving forward. The company repurchased $500 million in stock during the quarter, signaling internal confidence and enhancing per-share value. Looking ahead, investors should circle June 24, 2025 that's when FedEx is scheduled to release its fiscal Q4 earnings. With the freight spin-off looming and cost initiatives ramping up, that earnings call could provide the next major signal for how this transformation is progressing. It is a company trusted by some of the sharpest long term investors in the game when you look under the hood of FedEx's ownership structure. That stake is not noise, institutional ownership sits high at close to over 79 percent. It represents confidence in the company's fundamentals, its strategic direction and most importantly that it is capable of creating value in the medium term. At the top of the shareholder list is Vanguard Group, holding about 8.43% of the company, followed closely by BlackRock with 6.25%. But perhaps the most interesting stake is from Frederick W. Smith, FedEx's founder and executive chairman, who still holds over 8.3% of the company's shares. That kind of insider ownership sends a strong signal he's not just steering the ship, he's riding it through the rough waters. His continued involvement shows belief not only in the company's mission but in its ability to successfully execute its freight spin-off and transformation plan. Together, this mix of institutional muscle and meaningful insider skin in the game builds a compelling picture. FedEx isn't some speculative play with a revolving-door investor base. It's a stock backed by institutions that do their homework and an insider who's been in it since day one. That level of commitment only adds to the sense that something bigger might be brewing here, especially as the company leans into becoming a leaner, more focused operator. Valuation isn't just about numbers it's about the story the market believes. Right now, the market seems unsure about FedEx. Its shares are trading at a P/E of 13.23, with an EV/EBITDA of 7.5 and a P/S ratio of just 0.58. Those numbers suggest investors are looking at FedEx and seeing a mature, margin-squeezed shipper. But that view may already be outdated. Let's put those figures in context. UPS, the closest peer, trades at a P/E of 14.4 and an EV/EBITDA of 8.75. It's a slightly richer valuation, and arguably deserved given UPS's steadier margins but FedEx is now aggressively closing that gap through its DRIVE cost transformation program, which has already begun delivering real savings. Meanwhile, ZTO Express carries a similar P/E of 12.98 but enjoys a higher EV/EBITDA of 7.14 despite facing regional and regulatory risk in China. Then there's GXO Logistics, the sector's growth darling, trading at a sky-high P/E of 31.3 and an EV/EBITDA of 13.35 a valuation that prices in flawless execution and rapid expansion, with very little margin for error. FedEx, by comparison, is still being priced like it's in trouble. But the fundamentals say otherwise. The company is generating solid earnings despite a soft macro backdrop, reining in capital expenditures, and boosting cash flow. It's also preparing a freight spin-off that could act as a major catalyst for valuation clarity and margin expansion. And yet, it's priced at nearly half the EV/EBITDA multiple of GXO, and trades below UPS despite aggressive restructuring and improving margins. This gap reflects market hesitation not performance. And that hesitation is the opportunity. If FedEx continues to execute, the market will have to catch up to the reality of its progress. To understand FedEx's valuation, you have to understand what the market thinks it's competing against and right now, that perception is shaped by three names: UPS, ZTO Express, and GXO Logistics. Each one highlights something FedEx hasn't quite solved and that's what keeps a lid on the stock. UPS is the benchmark. Its strength isn't just scale it's integration. While FedEx still operates separate Ground and Express networks, UPS runs one seamless system. That translates to better asset utilization and tighter cost control. Add in the recent USPS air contract win, and UPS just gained more volume with less volatility. The market sees that efficiency, that predictability, and prices it accordingly. For FedEx, this raises the bar: until it proves its DRIVE program can close the operational gap, it's going to keep trading at a discount. ZTO Express is different it's not a direct threat geographically, but it's a warning sign. It's running a lean, hyper-efficient network in China, and posting EBITDA margins that put most Western logistics firms to shame. Even if FedEx isn't chasing ZTO's turf, investors see what best-in-class margin execution looks like and FedEx doesn't look like that yet. That comparison adds to the skepticism, especially for a company promising a margin-driven transformation. Then there's GXO Logistics. It doesn't move packages like FedEx it builds complex, high-margin supply chain solutions. Think automation, AI-driven fulfillment, data-rich inventory systems. The market loves that model, which is why GXO is trading at more than double FedEx's valuation multiples. And that creates a different kind of pressure. FedEx wants to evolve into a more tech-enabled logistics brand it even launched Dataworks to do exactly that but so far, the market hasn't seen enough to believe it. GXO sets the ceiling for where logistics innovation is going, and FedEx hasn't proven it can get there fast enough. These competitors don't just take market share they shape investor expectations. UPS defines operational excellence. ZTO sets the efficiency standard. GXO owns the future-forward logistics narrative. FedEx, meanwhile, is trying to rewrite its identity and that's the hardest story to sell on Wall Street. But that's also the angle. If FedEx can close the margin gap with UPS, deliver a clean freight spin-off, and show real traction on digital innovation, the market's entire view of the company shifts. That valuation discount? It becomes a rerating story. Because right now, FedEx isn't being priced for where it's heading it's being penalized for where it hasn't been yet. FedEx is navigating several challenges that weigh heavily on investor sentiment. One of the most immediate developments is the recently brokered 90-day truce between the U.S. and China in their ongoing trade war. While tariffs on both sides have been significantly reduced U.S. duties on Chinese imports dropped from 145% to 30%, and China's retaliatory tariffs fell from 125% to 10% uncertainty remains. There are still active tariffs, including a 20% fentanyl-linked penalty and targeted duties on electronics and pharmaceutical imports. These changes ease pressure on international logistics in the short term, but the volatility of trade policy continues to present a longer-term strategic risk. Unionization efforts, particularly those involving the Teamsters, also pose a potential cost headwind. While FedEx has historically avoided unionized labor in most of its operations, continued negotiations and potential labor actions could increase wage expenses and reduce flexibility, especially as the company undergoes restructuring. Another area of concern is the company's balance sheet. FedEx holds over $36 billion in long-term debt, with a debt-to-equity ratio of about 35%. While not alarming on its own, it does limit flexibility if macro conditions worsen or if the spin-off underperforms. Beyond trade and labor, the spin-off of FedEx Freight is a pivotal move with potential upside, but also execution risk. A smooth separation could unlock shareholder value; a botched one could introduce new inefficiencies and hurt sentiment. Additionally, FedEx still needs to prove that the cost savings from DRIVE are not only real but also sustainable in a competitive environment. FedEx isn't a growth stock in disguise. It's a mature logistics heavyweight in the middle of a transformation and that's exactly where the opportunity lies. The market is treating it like a company that's stuck, weighed down by legacy costs, competitive pressure, and macro uncertainty. And yes, some of that caution is justified. Tariffs and the freight spin-off pose near-term risks, and innovation leadership is still up for debate. But much of the market's skepticism is already reflected in the current valuation. What's not fully priced in is where FedEx could be heading. Cost-cutting is showing up in the margins. Capital discipline is improving. The freight spin-off, if executed well, could unlock meaningful value. And the valuation? Still trading below peers like UPS and far below high-fliers like GXO, despite making real progress on efficiency and focus. This isn't about chasing hype. It's about spotting misalignment between perception and performance, between price and potential. FedEx is showing signs of becoming a leaner, sharper, more profitable version of itself. And for long-term investors, that setup a discounted stock with a real plan in motion doesn't come around often. The risk is visible. But so is the upside. If FedEx sticks the landing, this could be one of the more overlooked value plays in logistics today. This article first appeared on GuruFocus.
Yahoo
27-05-2025
- Business
- Yahoo
ANE Reported Adjusted Net Profit of RMB242 Million, Up 15.9% Year-on-Year, with Freight Volume, Revenue, and Profit All Rising
ANE Kicks Off 2025 Q1 with Strong Results: Adjusted Net Profit amounted to RMB242 Million, with New Peak of Profit Margin SHANGHAI, May 27, 2025 /PRNewswire/ -- ANE ( China's leading less-than-truckload (LTL) express freight operator, reported robust first-quarter results demonstrating synchronized growth across key metrics. The company delivered a 15.9% year-on-year increase in adjusted net profit to RMB242 million, with adjusted net profit margin expanding to 9.4% - a new peak that underscores its enhanced operational efficiency. During the reporting period, ANE also recorded: LTL freight volume of 3.05 million tons (+5.9% YoY) Revenue of RMB2.59 billion (+8.8% YoY) The performance validates ANE's strategic focus on "quality-driven scale growth" under its "Five Most" operational framework: most dense network coverage, most optimal cost, most superior service quality, most stable timelines, and most timely service response. Network Expansion and Product OptimizationANE's freight partner and agent network has reached 36,000 service outlets by quarter-end, maintaining its leadership position in China's express freight sector. The company strengthened competitiveness in the mini and light freight segment (<300kg), achieving: 18.4% YoY volume growth in sub-300kg shipments 17.3% reduction in freight weight per shipment to 75kg 50.6% decrease in number of complaints per 100k shipments Operational Efficiency Enhancement through Refined ManagementDigital transformation initiatives, along with investment in technologies, drove significant cost optimization and service quality improvement Transportation and sorting costs per ton reduced by RMB4/ton Average shipment time shortened by 10.7% Loss rate per 100k shipments plunged 68.2% Supply Chain Transformation and Market ConsolidationWith China's economy transitions into high-quality growth stage, the logistics sector is accelerating its agile transformation across supply chains. This shift is driven by the "small-batch, high-frequency; low-inventory, rapid-turnover" paradigm now reshaping commercial flows across retail, manufacturing, and commercial sectors – a structural change demanding hyper-responsive logistics networks favoring nationwide express freight networks gaining share in the LTL market. Industry data shows nationwide express freight providers gained 14% market share in 2024 while regional LTL and special line operators contracted. It's notable that the company also increased e-commerce-related shipments to 36% of total volume, consolidating partnerships with major platforms including TEMU, Douyin, 1688, and PDD. Sector Dynamics Favor Market LeadersThe express freight sector exhibits accelerating consolidation, with top 5 players commanding 82% of industry revenue and 65.5% of total shipments among top 10 competitors. ANE recently topped both China's LTL 50 and Express Freight 10 rankings for franchise operators. Industrial Securities maintains a "Buy" rating on ANE, citing its nationwide network density and operational efficiency as key differentiators. Analysts anticipate continued market share gains as industry upgrades drive supply chain modernization. View original content: SOURCE ANE Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
