Friday, April 21, 2017

Logistics Group Acquires US Freight Forwarding Partner to Boost Reefer Traffic

20 Year Cooperation Results in Takeover
Shipping News Feature
US – Samskip is to expand its global refrigerated foods transportation interests once more, announcing plans for its US arm to acquire the activities of New Jersey-based freight forwarder Rimar Consultants. Rimar is responsible for container business equivalent to between 10,000-12,000 TEU per year and says it has developed a loyal customer base over a 35-year company history, largely focused on US seafood and meat exports. Relations between Samskip and Rimar extend back over a 20-year period, and the established relationship between the pair suggest that the merger is unlikely to prove disruptive.

Both partners agree that merging the two businesses could also bring significant opportunities for growth and spin-off activities. Ásbjörn Gíslason, CEO of Samskip Logistics, observed:

“The purchase is strongly aligned with our continuing strategy to build reefer business. The merger of Rimar's activities into Samskip Logistics USA will bring indirect cost savings, better procurement, and scale economies. Rimar has strong relations with key carriers, truckers and trans-load vendors, and this will strengthen procurement and benefit Samskip Logistics network volumes.

“Timing for a deal is also favourable, given a strong outlook in this market for 2017. Integrating processes will be straightforward because the operational and documentation approaches are similar. Rimar's strengths have been focused on growing its FCL by sea business, but the same customers are very active in imports, cross-trading, storage and Air transport opportunities. Their strong relations in Asia, South America and Europe, when combined with Samskip's network and expertise creates new opportunities for all parties in some of the world's key trade lanes.”

Subject to agreement with current owner Richie Maddalena, the acquisition is expected to bring three experienced Rimar consultants into direct employment with Samskip whilst Rimar staff will transfer to the Samskip New Jersey office. With a presence on the US market since 1994, Samskip Logistics opened new headquarters in Brunswick, New Jersey last year, with plans to open further US offices later.

Samskip has recently increased its interest in the refrigerated transport market investing in more reefer vessels, reefer containers, cold-store and terminal operations, as well as forwarding. In 2016, Samskip Logistics obtained a 50% share in Norwegian shipper Silver Sea, which operates 14 reefer vessels and is principally trading in the North Atlantic, Baltic, North Sea and Black Sea. Samskip Logistics itself now owns five reefer vessels. The company also introduced web-based track and trace capability for temperature-controlled cargoes throughout its network.