Austrian transport and logistics company, Gebrüder Weiss announced the acquisition of Cargo-Link on February 5, 2024 for an undisclosed amount. Cargo-Link is a fully family-owned, non-asset based freight forwarding company based in Salt Lake City, Utah. The acquisition is part of Gebrüder Weiss’ objectives for continuing growth in North America, which include expanding its LCL services in the Air & Sea segment. Cargo-Link specializes in LCL shipping and imports from Asia to mid-western customers in the United States. Its clientele include Abbott, Easton, 3Com, Baker Hughes, Browning, Novell, and Autoliv, among others. Since its inception in 1976, the company has operated a Customs Bonded Warehouse and its own fleet of vehicles, ranging from van to tractor-trailer, to satisfy the needs of its diversified customer base.
“This acquisition significantly upgrades our service potential and broadens customer access, seamlessly blending Cargo-Link’s expertise with the expansive capabilities of Gebrüder Weiss,” says Scott Ogden, CEO of Cargo-Link. “The two companies are a cultural fit as well as a business fit. Cargo-Link is a family-owned, family-focused company with a philanthropic culture, and we sought those same values in a corporate partner.”
In addition to Gebrüder Weiss’ greater coverage in the Intermountain West geographic area and establishing Salt Lake City as its 15th North American location, the company also gains access to a 22,000-square-foot warehouse attached to the Cargo-Link office and optimally positioned near the Salt Lake City airport.
Gebrüder Weiss made a number of important investments in the United States and Europe during the years 2022 & 2023. For example, the company expanded its head office in Chicago and established a new logistics warehouse in Elgin, Illinois. It strengthened its foothold in the United States by opening an air and sea freight office in Miami, Florida, in April 2023. Gebrüder Weiss has five warehouse facilities in the United States, employing 130 people in Atlanta, Boston, Chicago, Dallas, El Paso, Los Angeles, New York, San Francisco, and, most recently, Miami. In addition, early in 2022, the company expanded its cross-border capabilities by opening a site near the Mexican border in El Paso, Texas. The forwarder believes that the new facility will help support the ongoing move to nearshoring while also providing clients with various shipping routes and techniques.
The international freight forwarder posted a net revenue of €3.01bn in 2022. This surge was mainly driven by the high freight charges of shipping companies and airlines.
“We have succeeded in adhering to and advancing our strategic goals in a challenging environment. We have expanded our position in the core markets of Central and Eastern Europe, the United
States and Asia, while moving forward with our focuses on digitalization and climate neutrality by 2030. The rewarding results across our divisions are proof positive that we are a solid organization that is fit for the future,” says Wolfram Senger-Weiss, CEO at Gebrüder Weiss.
Despite economic challenges in 2022, including the war in Ukraine, energy issues, and inflation, Gebrüder Weiss maintained its investing strategy. The company invested €67m to consolidate its network and expand internationally. The main target areas were Germany, Hungary, Romania, the US, Turkey, and Georgia. According to the forwarder, the latter two countries serve as key links in the Middle Corridor, Central Asia, and China.
Gebrüder Weiss established a strong presence in the German logistics sector, with a focus on both air and sea transport. Lode, a Bavarian freight forwarding company, was renamed Gebrüder Weiss Waldkraiburg in November 2022. In early 2023, the Rentschler shipping company (Baden-Württemberg) was taken over as a first step towards expanding the forwarder’s land transport network in Southern Germany. Gebrüder Weiss increased its German network in June 2023 when it acquired freight forwarder B+A Luft- und Seefrachtspedition in Nuremberg. With offices and warehouses in 15 North American markets, the freight forwarder intends to boost its geographical coverage.
Author: Shruti Sasidharan
Source: Ti Insights
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