Core Activities

Global Logistics Strategies LLC (GLS) invests capital, pursues mergers and acquisitions, provides strategic consulting and engages in performance enhancement activities to the ocean transport intermediary (OTI) industry.

OTIs include non-vessel operating commons carriers (NVOCCs) and ocean freight forwarders (OFFs). Investment capital is in the form of debt and equity, including from established private equity sources.

The Problem

Already tough times are becoming more challenging for small and medium-sized (NVOCCs) and Ocean Freight Forwarders (OFFs).

The ocean transport intermediary business is not what it used to be. Competition has increased, rates rise and fall wildly and unpredictably, customer loyalty is not as strong as before and all of this is squeezing margins.

Add in the sheer buying power of the bigger competitors with their lower rates, the fact that the 3PLs are becoming more sophisticated with advanced supply chain management systems, and the future looks very distressing.

With these smaller margins and tighter sales, come cash flow problems. It's hard to get banks too excited about lending to a non-asset based business. And unless you are a giant, it's hard to sell your OFF or NVO.

This increasing competition and downward pressure on freight rates with decreasing margins is likely to continue, creating liquidity problems and undercapitalization for many OTIs, especially small and medium-sized ones. Continuing market pressures will force OTI consolidation and strategic alliances, especially of the many mid-sized OTIs that have not been able to grow.

Our Solutions

GLS is the only firm dedicated to serving ocean transport intermediaries with merger and acquisition services and private equity investing. OTI owners, many of whom are in their fifties and sixties, who wish to sell or plan for their eventual retirement can only call on their competitors, often an unpleasant prospect. This is where we come in! Buying or selling an ocean freight forwarder or a VO, takes expertise and capital. GLS has both.

Furthermore, many mid-sized OTIs may be experiencing little or no growth and maintaining their customer base may be a constant battle. Our relationships and expertise can reverse this trend.

GLS can also fill the role of trusted advisor by assisting OTI owners with orderly retirement through mergers, acquisitions, investments in their companies, arranging strategic alliances, joint ventures, etc. GLS performs this role professionally and discretely, without the knowledge of staff or competitors. Keeping our activities strictly confidential is absolutely essential in our business.

Professionals

The principals of GLS bring their expertise to this venture with backgrounds in business acquisitions, strategic combinations, operating management, corporate finance, accounting, portfolio monitoring, and through the successful completion of over 100 transactions in the private equity industry.

The principals are backed up by a team of seasoned maritime professionals with extensive experience in the global logistics market, legal issues such as Federal Maritime Commission (FMC) regulations and the operating details of the industry.

The team at GLS has many key industry contacts which allow it access to valuable industry information.

GLS can also assist its clients with strategic direction and profit enhancement ideas and opportunities. These may include access to highly competitive rates based on different partnership arrangements.

Contact

To arrange for a confidential consultation with a Managing Director of Global Logistics Strategies please e-mail Larry DeFiore at larry@glstrategies.com or call him at +1 248.818.0303.