Freight forwarder Accelerated Global Solutions, which was acquired in November by startup parcel delivery service SpeedX, said Monday it has taken a 15% stake in Malaysia-based KGW Logistics. The transaction is part of owner Chris Zheng’s ambitious plan to develop within 18 months a $1 billion company capable of managing customers’ entire logistics process from origin to destination.
The KGW investment expands Accelerated Global Solutions’ footprint in Asia and bolsters its trans-Pacific ocean and customs brokerage services. New York-based AGS currently manages air and ocean exports from facilities in China, Hong Kong, Vietnam, Taiwan and the Philippines, and operates 10 warehouses in North America.
With over 300 employees, AGS handles logistics for fast-fashion, automotive, health care, technology, metal and seafood companies, in addition to e-commerce sellers and distributors.
KGW specializes in ocean freight, moving more than 10,000 standard shipping containers per year to North America. It also provides warehousing and distribution, truck delivery, and project cargo services, as well as some airfreight. The partnership enables KGW to gain access to Accelerated Global Solutions’ shipping and distribution network and adds scale to their combined offerings.
SpeedX, founded in 2022, provides last-mile parcel delivery for online marketplaces, large retailers and fulfillment centers such as Shein, Temu, Amazon.com and TikTok. The company’s nonasset model relies on independent contractors, making it less expensive than traditional express carriers FedEx and UPS. A key value proposition is expertise getting customs clearance for low-value shipments. It claims to reach more than 9,000 ZIP codes and has a target of about 500,000 daily parcel deliveries in 2025.
SpeedX and AGS operate as separate brands, but the combination allows each to offer an integrated freight forwarding, customs clearance and home delivery capability. KGW will now be able to offer expedited e-commerce service to major U.S. metropolitan areas and beyond, according to AGS.
“KGW’s leadership in trans-Pacific ocean freight aligns seamlessly with AGS’s vision of building a truly integrated logistics network. By combining our existing freight forwarding and brokerage capabilities, KGW’s ocean freight expertise, and SpeedX’s innovative last-mile solutions, we are creating an infrastructure that meets the demands of a globalized economy. This partnership reflects our commitment to delivering efficient, cost-effective, and tech-enabled global logistics solutions,” Zheng said in a news release.
AGS in November hired Tony Barnes as global chief commercial and growth officer. He previously served for more than seven as president and chief operating officer, Asia Pacific, for Chicago-based Seko Logistics. His career includes stints as a senior director in Hong Kong for shipping giant A.P. Moller-Maersk and senior vice president, global ocean product development, at Ceva Logistics.
SpeedX began a zone-skipping program in April that offers two- and three-day delivery from origin airports to destination markets by leveraging its warehouse network. The company injects parcels into the U.S. Postal Service network at a section distribution center rather than post offices at the end of the line, a method preferred by large consolidators.
Zheng has previously stated that SpeedX and AGS together generate more than $500 million in revenue. Unclear is whether new U.S. plans to restrict Chinese online retailers from a duty-free import program will have a material impact on cross-border e-commerce logistics providers like SpeedX.
Click here for more FreightWaves/American Shipper articles by Eric Kulisch.
Write to Eric Kulisch at [email protected].
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