Transplace announces acquisition of Yusen Logistics’ IMC/over-the-road freight brokerage group

With an eye on expanding its North American intermodal capabilities and a corporate commitment focused on strategic growth to meet its customers supply chain needs, non asset-based third-party logistics (3PL) services provider Transplace said this week it has acquired Yusen Logistics (Americas) Inc.’s intermodal marketing company/over-the-road freight brokerage group.

Financial terms of the transaction were not disclosed.

Yusen Logistics (Americas) Inc. is a subsidiary of Nippon Yusen Kaisa (NYK), a Tokyo, Japan-based global ocean container carrier. It has offices in 44 countries and regions. Transplace officials explained that by bringing Yusen Logistics (Americas) Inc. into the fold it is able to expand the company’s geographic footprint and intermodal network, adding that it also augments its objective to provide shippers with a high level of transportation management, intermodal, brokerage, and cross-border trade management services.

Yusen’s intermodal locations are based in Jacksonville, Fla., Cincinnati, Ohio, Memphis, Tenn., Chicago, Ill., Dallas, Texas, and will be function as part of Transplace’s intermodal division, Celtic Intermodal, which it acquired in 2011.

Transplace CEO Frank McGuigan said there were various drivers behind this acquisition.

“In today’s challenging marketplace, with fluctuating capacity and rising freight costs, more and more shippers are making intermodal a key component of their transportation operations,” he said. “Transplace is committed to best positioning itself to provide our customers with flexible, reliable and secure intermodal solutions. And acquiring Yusen’s North American intermodal operations will allow our customers to better take advantages of this highly effective and efficient mode of transportation. Additionally, Yusen Logistics has established a strong presence in the industry along with a superb customer base, and brings a customer-centric culture that complements Transplace’s business and mission.”

In terms of shipper benefits, McGuigan said that as an intermodal service provider, Transplace’s focus is on its customer and provding the best combination of rates and routes regardless of the railroad or container. The acquisition also supports Transplace’s current intermodal service offering, which the company has grown organically since acquiring Celtic International in 2011, he said.

What’s more, he noted that Yusen strengthens its current position in the intermodal market, expands its relationships with railroads, drives more effective equipment utilization and increases its already deep pool of dray providers.

“The overall Transplace shipping community will benefit from network synergy with our current intermodal and over-the-road footprint, resulting in better opportunities for more effective execution of their intermodal shipments and mode conversion,” he said.

With Transplace’s customers increasing the use of intermodal within their operations, this acquisition provides a larger network for customers to leverage that transportation mode, he said, adding that another significant benefit of the acquisition is the group of experienced, talented logistics professionals that have joined the Transplace family.

Dick Armstrong, president of supply chain consultancy Armstrong & Associates, said that this acquisition is a “good move” for Transplace in that it provides an important diversification and should significantly expand Transplace's intermodal capabilities.