Strategic deals, not volume, are driving transportation & logistics M&A amid uncertainty, says PwC report

A combination of factors is having what could be viewed as a negative impact, when it comes to transportation and logistics (T&L) mergers and acquisition (M&A) activity. That was the primary thesis of a new report issued today by business consultancy PwC, entitled “Transportation & Logistics: US Deals 2025 Midyear Outlook.”

In the report, PwC explained that T&L deal making activity remained consistent in 2025 compared to the same period a year ago, adding that U.S. deal volume was “muted as companies navigated sustained macroeconomic pressure, policy shifts, and geopolitical volatility,” adding that “T&L leaders are prioritizing strategic alignment over volume with subsectors such as airfreight, logistics, and marine ports and terminals attracting the most interest.”

In an interview, Mike Ross, PwC’s U.S. Consumer Markets Deals Leader, said his firm is seeing a shift from chasing shipment volume to making deals that serve a longer-term strategic vision, adding that leaders in the T&L space are zeroing in on subsectors like airfreight, logistics, and marine ports and terminals because these areas offer scale, specialization, and global expansion potential.  

“The market is suggesting that while volume is important, deal makers are prioritizing healthy margins over volume,” he said. “Attractive targets strike a balance between margin and scale.” 

With the report citing how BlackRock’s proposed $22.8 billion acquisition of CK Hutchison’s global ports business highlights how there is increasing institutional investment interest in ports, Ross explained that this speaks to how interest in ports continues to gain traction, and deals like that underscore how ports are viewed as scalable, long-term infrastructure assets that align well with policy priorities.  

“Our report notes this as part of a broader investor appetite for infrastructure, especially assets like ports that offer stability and strategic value in a volatile environment,” he said.

On the trade front, with the current situation regarding global trade and tariffs still largely uncertain, coupled with geopolitical conflicts and an ongoing lack of interest rate cuts, Ross said that PwC’s findings suggest that the combination of murky trade policies, global conflicts, and stalled interest rate cuts has already muted deal activity.

“Without greater clarity on tariffs and more stable macroeconomic signals, it’s likely that this ‘wait-and-see’ mindset among dealmakers could persist,” noted Ross. “Stability is key to unlocking momentum.” 

PwC took a close look at how “tuck-in deals” for specific segments, like healthcare and pharma, being viewed as “accretive plays.”

When asked if this is more than a permanent trend, Ross said that it certainly looks like more than a short-term play, saying that companies are actively reshaping their portfolios to zero in on resilient, high-margin segments—with areas like healthcare and pharmaceutical logistics fitting that mold.

“With high barriers to entry and stable demand, these segments offer attractive growth, and these deals are being increasingly viewed as long-term value drivers,” he said.

With an eye on the future, the report said that tariffs, foreign policy, interest rates, and geopolitical tensions remain key variables influencing T&L deal activity.

“Greater clarity on trade policy—including defined tariff structures and an actionable framework — could unlock renewed momentum,” said PwC. “In contrast, persistent uncertainty is likely to keep dealmakers in a holding pattern. In either scenario, shifts in tariff policies could reshape the competitive landscape, creating winners and losers across regions and transportation modes.”

Please click here to read the complete report.