Freight firm’s expansion continues with purchase of New York-based forwarding and cross-border ecommerce specialists Air-City, gaining ‘immediate depth in the growing air freight trade to China’ and ‘key facility infrastructure near JFK airport’.
US-headquartered SEKO Logistics has completed its largest-ever acquisition with the purchase of New York-based freight forwarder and cross-border e-commerce experts Air-City, gaining “immediate depth” in the growing e-commerce-driven air freight trade from the US to China and key facility infrastructure near JFK airport.
Air-City was established in 1984, expanding to 15 offices worldwide, with New York as its head office. It has more than 400 employees and was among the first group of international freight agents authorized by China’s government in 1994, holding a certificate of approval for the establishment of enterprises in China.
SEKO said that like its purchase of GoodShip International in early 2019, “which added depth and expertise to SEKO’s corporate gateway operation in Chicago”, its acquisition of Air-City “will immediately add additional resources and growth to SEKO’s key New York region”. Last year’s purchase of Chicago-headquartered customs brokerage and compliance consultancy GoodShip International marked the first full acquisition of another independent freight forwarding specialist in SEKO’s 42-year history.
SEKO, which has built up a network of over 120 offices in 40 countries via a ‘shareholder management model’, said the investment in Air-City “represents the latest phase of SEKO’s programme to accelerate its strategic vision by expanding its global footprint, establishing more strategic partnerships, and making accretive acquisitions that expedite the growth of its three core services; omni-channel logistics, white-glove services and value-added freight forwarding”.
In the past 18 months, SEKO has also acquired a majority shareholding in its strategic partner Omni-Channel Logistics Australia, “to further solidify and grow its eCommerce and technology solutions for retailers, pure-play etailers, marketplaces and platforms”.
SEKO president and CEO James Gagne said: “Air-City will give us immediate depth in the growing westbound air freight and cross-border ecommerce trade for goods going to China. Air-City also gives us strategic air freight volumes and expertise into China as the rising demand for US goods increases along with a rising middle class in China.
“We have also added strength to our US import services with the all-important ‘Section 321’ and Type 86 entries for e-commerce capabilities that are so critical for cross-border e-commerce into the United States, as well as a network of bonded warehouses in the United States. The outstanding Air-City team will not only assist our current clients with expanded and faster value-added forwarding and global ecommerce capabilities, they will also support our award-winning air product team and help our US and international network of strategic partner locations to grow their business faster.”
The addition of Air-City “will also build the capabilities of SEKO’s New York Gateway, which offers support to international shippers, by adding key facility infrastructure in the tight real estate market near JFK international airport”. Further expansion of SEKO’s JFK operations will be announced in 2020, the company said.
Chris Zheng, executive VP of Air-City, commented: “This partnership with SEKO will give a transformational boost to our rapidly growing cross-border e-commerce and freight forwarding businesses to better serve our clients. Our cultures are so aligned with the speed of e-commerce, growth of cross-border ecommerce expertise, focus on seamless technology and growing freight management capabilities. We are excited for our next phase of growth and the additional benefits we can deliver for our clients in Asia and the United States as part of the SEKO organization.”
Source: Lloyd’s
