SEKO Logistics announces acquisition of New York-based Air City Inc.

Chicago-based third-party logistics (3PL) services providerSEKO Logisticssaid yesterday it completed its acquisition of New York-basedAir City Inc., a freight forward and e-commerce services provider.

SEKO said that this deal represents the largest acquisition it has ever made and did not disclose a purchase price.

Established in 1984, Air-City has 15 global offices and was among the first group of freight agents authorized by the Chinese government in 1994 and also hold a certificate of approval for the establishment of enterprises in China. SEKO officials said that with Air-City in the fold, it will bring additional resources and growth for SEKO in the New York region, as well as help SEKO to accelerate its strategic vision through expanding its global footprint and making more accretive acquisitions that will help to improve its three main service offerings: Omni-Channel Logistics, White Glove Forwarding, and Value-Added Freight Forwarding.

This is the most recent example of SEKO remaining active on the acquisition front.Roughly a year ago, it acquired GoodShip International, a customs brokerage and compliance consultancy. And it also acquired a majority shareholding in its strategic logistics partnerOmni-Channel Logistics Australia in September 2018to in an effort to expand its e-commerce and technology solutions geared towards retailers, pure-play e-tailers, marketplaces, and platforms.

“Air-City will give us immediate depth in the growing westbound airfreight and cross-border ecommerce trade for goods going to China,” said SEKO’s President and CEO, James T. Gagne in a statement. “Air-City also gives us strategic airfreight volumes and expertise into China as the rising demand for U.S. goods increases along with a rising middle class in China. We have also added strength to our U.S. import services with the all-important ‘Section 321’ and Type 86 entries for e-commerce capabilities that are so critical for cross-border ecommerce 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 relationship between Air-City Inc. and SEKO, in the form of this deal, in many ways, was a natural evolution of their increasingly interconnected working relationship, with the companies having been working together for more than a year, according to Brian Bourke, SEKO vice president of marketing

“Our cultures and systems were very similar, which made the evolution that much faster and easier, along with our mutual focus on the USA, China, cross border e-commerce and airfreight, among other forwarding services,” said Bourke.

The biggest benefit of this deal for SEKO’s shipper customers, explained Bourke, will be the company’s collective airfreight buying power into China and airfreight capabilities out of its key gateway markets of not only New York but bolstering its gateways in Chicago and Los Angeles as well.

“We are now able to offer more service, more competitive rates and faster response time for critical exports out of the United States,” he said. “We also add to our portfolio of customs brokerage services the ability to offer Section 321 and Type 86 entries for cross border e-commerce.”

When asked what Air-City brings to the table that SEKO did not offer or provide to shippers, Bourke said that the service SEKO is most excited about adding to its portfolio is the ability to execute Section 321 and Type 86 entries for cross-border e-commerce into the U.S.

“This is critical for our continued growth with cross border e-commerce, and being able to offer this solution to our clients will be critical to our growth moving forward,” he said. “We will be able to facilitate faster clearance of parcels we import into the United States from Asia and Europe for faster transit times, rather than outsourcing this activity.”