2025 Freight-View

A Year of focus and resilience

As 2025 concludes, the global freight and logistics sector finds itself at an inflection point. Volatility persisted this year, driven by shifting tariffs, geopolitical tension and regulatory disruption, the response for mergers & acquisitions was neither reactive nor excessive. What characterised the period was strategic focus. The final edition of Freight-View reviews the defining sector themes and M&A characteristics in logistics throughout 2025 and what might influence deal appetite next year.

Disciplined strategies

While global M&A volumes increased in value terms (particularly in the earlier part of the year), logistics buyers adopted a more selective approach this year. The final quarter offered a modest uptick in deals with activity remaining targeted on deals with clear strategic merit. This included transactions in industries such as aerospace forwarding and express delivery, where the value case rested on core competencies, integration likelihood and margin durability. Across the industry vertical spectrum, buyers were engaging on thesis-led M&A rather than volume-led execution.

Private equity sponsors remained committed to the Logistics sector this year, largely through their portfolio assets engaging in bolt on deals, although there were some interesting platform formations in Europe especially. Investments were concentrated in asset-light operators, or in high operational barrier verticals, offering contracted revenues or technology required segments where investment is key. Capital allocation discipline remained evident throughout, with many sponsors unwilling to pursue deals that lacked a defined integration group value creation plan.

Strategic buyers, for their part, demonstrated a return to bolt-on acquisition strategies within adjacent geographies and verticals. Rather than enter completely unfamiliar markets, most focused on expanding their density in core areas, lanes and verticals.

The global trade landscape continued to evolve in 2025, shaped by a mixture of policy disruption and structural recalibration of supply chains.

Tariff and Regional movements

Elevated tariffs, particularly on US-China trade lanes, has become an accepted feature of the trading environment. The early year announcement of new tariff measures temporarily depressed sentiment, but the market swiftly adapted. Rather than retreat, operators pivoted to reconfigure procurement and operational models towards less exposed lanes. This shift was reflected in M&A activity, with increased interest in logistics deals in South-East Asia, the Middle East and Central Europe.

Red Sea access

Towards year-end, speculation regarding the reinstatement of shipping routes through the Red Sea and Suez Canal increased. While some carriers resumed limited activity, a full scale return remains unlikely in the short term due to persistent risk factors and insurance considerations. For operators, this has maintained pressure on European port infrastructure, particularly in Northern gateways where congestion continues to disrupt flows. From an M&A perspective, these dynamics reaffirm the premium placed on resilient routing, hinterland access, and warehousing/infrastructure capabilities.

Infrastructure Constraints

Port congestion, labour disruptions, and weather delays featured throughout the year, particularly in US, Europe and parts of Asia. These risks seem systemic rather than sporadic and are increasingly considered within diligence processes.

Technology – from efficiency lever to strategic requirement

Technology adoption accelerated across the freight market in 2025, moving beyond basic digitisation into areas such as network orchestration, real time pricing, emissions tracking and AI-assisted decision making.

For M&A acquirers, digital capability is now a core consideration. Transport management systems, customer interface platforms and optimisation tools are assessed for scalability, integration friction and future readiness. Several transactions this year were driven not by geographic or asset footprint, but by the quality of the technology stack.

Specialist verticals

Throughout 2025, M&A activity remained concentrated in verticals offering regulatory protection, technical/service depth and revenue durability.  Temperature controlled logistics continued to attract investor interest, supported by sustained demand from pharmaceuticals, bio pharma, and temperature-sensitive foods. Similarly, time-critical sectors such as aerospace, energy and projects, defence logistics and clinical trial transport reinforced their higher margin value credentials, churning out several mid-market acquisitions completed by corporate and financial acquirers. As the electrification of mobility accelerates, the logistics of EV batteries is emerging as a distinct operational and legal challenge. Lithium-ion batteries are classified as dangerous goods under ADR and IATA regulations, requiring certified packaging, controlled storage conditions, and specialist handling in transit.

Beyond transport, the regulatory landscape is evolving rapidly. The forthcoming EU Battery Regulation mandates battery passports, full traceability, and extended producer responsibility, with strict conditions on repurposing, dismantling, and recycling. Operators handling battery logistics must now address not only fire risk and environmental liability, but also compliance across second-life value chains and circular economy obligations.

These developments may soon define a high-barrier niche within logistics. Infrastructure enabling the compliant aggregation, storage and reprocessing of end-of-life EV batteries is attracting attention from strategic and financial acquirers alike.

Capital allocation and valuations

Across the industry, buyer and seller expectations remained somewhat misaligned. While valuations stabilised below 2021 peaks, lower margin segments such as road or sea freight were noticeably reluctant to engage below reference expectations. As a result, many processes were extended or withdrawn. Where deals did complete, the emphasis was on execution likelihood, cultural fit, and clear post transaction planning. An emerging pressure point was the growing competition for capital. M&A must now justify its place alongside capex and regulatory compliance. Fleet electrification, emissions reporting and digital infrastructure all compete for board investment nowadays.

2026 Outlook: Selective growth

Sentiment entering 2026 is cautiously optimistic. While macroeconomic uncertainty remains, recent activity suggests increasing appetite from both strategic and financial acquirers, provided integration risk is manageable, and the investment case is robust. Segments such as life sciences logistics, energy supply chain services, and transport optimisation software are all expected to see continued activity. Opportunities will favour acquirers able to articulate: a compelling strategic rationale, demonstrate their own margin resilience over recent problematic years, and those engaging with evolving regulatory frameworks.

Closing views

The logistics sector entered 2025 under pressure and exits it having demonstrated notable resilience. Strategic and financial investors responded with focussed execution. Capital was deployed where rationale outweighed risk, and where integration could be executed with assurance. As 2026 begins, the challenge for quality M&A assets will continue to rise for buyers. It is therefore essential they can articulate why a transaction creates defensible value in a market where volatility has become the norm. Freight and logistics M&A will remain central to growth, but only where the strategic intent is clear, the returns profile is credible, and the operational foundation is already in place.