SEKO increases airfreight presence with Air-City acquisition
08 / 01 / 2020
By Damian Brett
SEKO Logistics' new Chicago facility
SEKO Logistics has completed its largest-ever acquisition with the purchase of New York-based Air-City.
The logistics firm said the move would help it expand its presence on the westbound airfreight market, while also adding resources to its key New York region.
The purchase will also see SEKO add facility infrastructure in the tight real estate market near JFK international airport.
“Air-City will give us immediate depth in the growing westbound airfreight and cross-border ecommerce trade for goods going to China,” said SEKO president and chief executive James Gagne.
“[The acquisition] also gives us strategic airfreight 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 in the US as well as a network of bonded warehouses in the [country].
“The outstanding Air-City team will not only assist our current clients with expanded and faster value-added forwarding and global e-commerce 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.”
Chris Zheng, executive vice president of Air-City, said: “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 ecommerce, 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 organisation.”
The investment represents the latest phase of SEKO’s programme to expand 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”.
January 2019 saw the company make the first acquisition in its 42-year history through the purchase of GoodShip International.
The company also acquired a majority shareholding in its strategic partner Omni-Channel Logistics Australia to further solidify and “grow its e-commerce and technology solutions for retailers”.