SEKO Logistics completes its largest-ever acquisition with the purchase of New York-based freight forwarder and cross-border e-commerce specialist, Air-City. The financial details of the acquisition were not revealed.
Similar to the purchase of GoodShip International, which added depth and expertise to SEKO’s corporate gateway operation in Chicago, Air-City will immediately add additional resources and growth to SEKO’s key New York region.
SEKO says the investment represents the latest phase of the company’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. These include: 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 e-commerce and technology solutions for retailers, pure-play e-tailers, marketplaces and platforms.
Air-City was established in 1984, expanding to 15 offices worldwide, with New York as its head office. The company was among the first group of freight agents authorised by the government of China in 1994 and holds a certificate of approval for the establishment of enterprises in China.
“Air-City will give us immediate depth in the growing westbound airfreight and cross-border e-commerce trade for goods going to China,” says SEKO’s president and CEO, James T. Gagne. “Air-City 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 into the United States as well as a network of bonded warehouses in the United States,” Gagne continues.
“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.”
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.
Chris Zheng, executive vice president of Air-City, adds: “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 e-commerce 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.”