Mainfreight Annual Report 2022

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PERFORMANCE Group Managing Director’s Report
21
The Americas
The performance from our Air & Ocean division has
enabled a significant lift in overall profitability and
performance. The volume surge and opportunities
presented, particularly in sea freight from Asia, have
enabled our team to develop a significant presence in
this market segment. Likewise, the flow-on effect for our
Transport and Warehousing divisions has been pleasing.
Customer growth has seen the need for further
Warehouse development; another 90,000 square metres
has been opened in the past 12 months, across facilities
in Pennsylvania, Texas and Illinois.
Our Transport division is firmly focused on the LTL (less
than truck load) freight market across the breadth of
the USA and into Canada and Mexico. Whilst growth has
been satisfactory, we expect momentum to increase as
purpose-built cross-dock facilities are implemented and
provide greater efficiencies.
During the past year, we have been able to open another
two Transport locations (replacing agency arrangements)
and we now have 210 Owner Drivers providing LTL
freight solutions that are able to service over 50% of the
USA population. Furthermore, 80% of all our Transport
customers’ freight now moves within our own dedicated
line-haul network.
We will continue to further intensify our network across
The Americas in all three divisions. We estimate our
current market share to be less than 0.5% of the
$190 billion market opportunity available. We have plenty
to do to increase our market presence.
CaroTrans has improved its performance in the NVOCC
wholesale sea freight market. New agency arrangements
in South America and Europe have provided larger
volumes in-bound. A stronger focus on export LCL freight
growth will complement these relationships in the
long-term.
During the year, Jason Braid was promoted to the
Americas leadership role. Jason has been with
Mainfreight for 25 years in a variety of roles, most recently
leading our Air & Ocean Division in Europe. This change
has resulted in the typical cascade of internal promotions,
refreshing our leadership and branch management
teams there.
Conclusion
Our financial performance across the Group over
these past two years has been satisfactory, against a
background of ongoing supply chain congestion and
fragility brought about by the pandemic.
Our people have been remarkable in maintaining
services for our customers. This has enhanced our
reputation, and provides us with an excellent platform
for further growth, instilling us with the confidence to
commit to further capital investment and increase our
infrastructure across all five regions.
There are some who see our performance as being
one-dimensional – the Air & Ocean effect. While that
has assisted, we have also seen significant benefits
within our Transport and Warehousing divisions; growth
and performance that will last long after the Air & Ocean
normalisation that we can expect between now
and 2025.
We face an uncertain economic environment with
increasing inflation, continued supply chain congestion,
and variability of discretionary spending (likely diverted
to the service sector). We remain undeterred.
Opportunities continue to present themselves, we are
investing in our infrastructure, people, technology and
customers, and we remain confident of ongoing growth
and expansion no matter the conditions.
Thank you for being on this journey with us.
DON BRAID JUNE 2022
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COMMITMENT
to stay true to our Founder’s values through all seasons.
The focus remains on our people and culture.
ALBERT FARRALES AND LEO VELASQUEZ, LOS ANGELES, USA