Dec 22, 2021 - Economy

Maersk buys pan-Asian warehouse operator for $3.6 billion

a red shipping container with a green bow on top

Illustration: Brendan Lynch/Axios

A.P. Moller-Maersk, the world's largest container shipper by volume, agreed to buy pan-Asian warehouse operator LF Logistics for around $3.6 billion in cash. The sellers are Hong Kong-based logistics firm Li & Fung and Singapore sovereign wealth fund Temasek.

Why it matters: This reflects not only how Maersk has reaped billions in profit from the global supply chain crisis, but also how it's using some of that surplus to bulk up on landbound logistics for when shipping fees ease.

By the numbers: LF Logistics has more than 220 warehouses in 14 Asian countries, with around 10,000 employees. Its freight forwarding business is not included in the sale.

The bottom line: "Maersk has around 70,000 ocean customers that include U.S. retail chains, car makers, furniture suppliers, electronics makers and clothing importers. But less than a quarter of those customers use the company to move their goods from ports to warehouses and distribution centers." ā€” Ben Dummett & Costa Paris, WSJ

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