Transport & Logistics
KPMG Transport Tracker – March 2016
This sixth edition of the KPMG Transport Tracker has a special focus on the rising M&A activities and investments in transport startups, analyzing the impact of falling fuel prices on airline operating models and discussing the challenges ahead for logistics companies amidst growing competition from tech giants and startups.
A few insights include:
- In Shipping, we expect to see larger mergers and restructuring efforts across the globe in 2016, as a recovery is nowhere in sight.
- In Aviation, the impact of declining fuel prices on individual airlines has not been universally positive, depending on the airlines’ hedging strategies. KPMG’s analysis of a sample of full service and low cost airlines reveals that the oil price reduction has improved the price competiveness of the legacy carriers. What opportunities do low cost airlines have to respond?
- In Logistics, the major competitive advantages of tech giants and startups over traditional logistics companies are both their technological ability and innovative agility – characteristics that a number of logistics companies are currently lacking.
- And as startups continue enter the market, transportation and logistics companies are at risk of losing their most important asset: the customer interface.
- M&A activity in the sector reached a record level in 2015 and will remain high in 2016. Acquisitions made are increasingly serving the transformation of existing business models and are intended to compensate for the slower market dynamics through inorganic growth.