In this article, we will be looking at the 5 biggest logistics companies in the world. If you want to see our detailed analysis of these companies, go directly to the 25 Biggest Logistics Companies in the World.
5. A.P. Møller – Mærsk A/S (CPH: MAERSK-B)
Maersk is a Danish shipping company that provides services in supply-chain management and port operations. It has a market capitalization of $54.3 billion.
4. DSV Panalpina A/S (CPH: DSV)
DSV, again, is a Danish logistics company that provides transport services through its road, rail, sea, and air transportation networks. DSV’s market capitalization stands strong at $55 billion.
3. FedEx Corporation (NYSE: FDX)
Perhaps the most famous company in our list of the 25 biggest logistics companies in the world, FedEx Corporation (NYSE: FDX) stands strong among the top 3. It has over 600,000 employees that are serving all around the world. For the fiscal year 2020, FedEx Corporation (NYSE: FDX) reported revenues of $69.2 billion. Market capitalization for FedEx Corporation (NYSE: FDX) is about $78.5 billion.
Artisan Partners, in its Q1 2021 investor letter, mentioned FedEx Corporation (NYSE: FDX). Here is what the fund said:
“Whatever products did make it off the line met a constrained logistics infrastructure, with commercial air capacity cut and ship cargo space at a premium. Then, in the event your dishwasher part actually made it to US waters, our ports were congested due to manpower shortages and COVID-19 protocols. When the goods were finally unloaded, it turns out trucking shortages caused a spike in ground rates! All this might be bad for your dinner parties, home décor or exercise goals, but it can be great for the middlemen. Middlemen like logistics expert FedEx.
FedEx provides global logistics services. It gets your dishwasher part on a truck, or that semiconductor chip on a plane. Surging demand for at-home deliveries during the pandemic boosted volumes and allowed management to push through price increases, keeping competitive with industry peers. The industry’s renewed pricing discipline was a welcome change, reflecting a broader commitment to earn better returns on invested capital. Despite a significant re-rating of the business over the last 12 months, FedEx remains attractive based on our margin of safety criteria.”
2. Deutsche Post AG (ETR: DPW)
Deutsche Post AG, known for its DHL division, is a multinational logistics corporation that offers package delivery and supply-chain management services. It is one of the world’s largest courier companies and has its corporate headquarters in Germany. It has a global presence in over 55 countries and is worth $85.8 billion on the open market.
1. United Parcel Service, Inc. (NYSE: UPS)
We have reached the top of our list of the 25 biggest logistics companies in the world, placing United Parcel Service, Inc. (NYSE: UPS) at number 1. United Parcel Service, Inc. (NYSE: UPS) is an American shipping and SCM company that has over 480,000 employees worldwide. United Parcel Service, Inc. (NYSE: UPS) generated revenues up to $84.6 billion in 2020. The market capitalization for UPS is a whopping $184 billion, the highest on our list.
In the Q2 2021 investor letter of ClearBridge Investments, the fund mentioned United Parcel Service, Inc. (NYSE: UPS). Here is what the fund said:
“We funded the shift primarily with trims in UPS following big gains in this name. UPS is a long-term holding that have been and remain core holdings. During the quarter, however, we took gains and resized the positions to reflect their current risk-reward post strong increases in the stocks.
UPS too has been a core, long-term holding. For many years its stock languished alongside fundamental performance that was both uneven and often uninspiring. Since Carol Tomé took the reins last summer and capitalized on COVID-19-related freight disruptions, UPS’s earnings have soared, and the stock has followed suit. We trimmed the position toward the end of the quarter despite continued near-term momentum and an undemanding valuation multiple. This trim reflects the longerterm risk, though hard to quantify, that Amazon may become a full-fledged competitor and meaningfully disrupt the dynamics of the industry. While not our base case, this risk cannot be disproven. We continue to be very bullish on UPS’s near-term outlook and optimistic about its longer-term outlook, while also continually looking over our shoulder to make sure Amazon is not on our heels.”
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