Agility has been involved in a legal dispute over the Prime Vendor food-supply contracts it held from 2003 to 2010. We anticipate developments in the case this month and wanted to make sure you were aware of them.

It is expected that Agility and the U.S. Justice Department will appear in court on January 13, 2012 where Agility will file its initial motions with the U.S. District Court in Atlanta, Georgia. These filings are important. They represent Agility’s first opportunity to challenge the allegations made by the U.S. Justice Department.
We also expect that on January 24, 2012 Agility and the U.S. Justice Department will appear in court in Atlanta for a previously scheduled hearing to assess the status of the case. At that hearing, the magistrate judge is expected to set future hearing dates and filing deadlines.
Agility believes the Justice Department has criminalized what is, at most, a civil contract dispute. In performance of the Prime Vendor contracts, Agility was open, transparent and accountable to the U.S. government, which approved its prices, suppliers and business practices for seven years. Agility, as it has stated for two years, is open to a resolution of the case, but its focus is now on bringing facts to light in court. ​​

Agility (PWC) and Professional Contract Administrators (PCA), a US-based consulting company, have received a joint arbitration award totaling $US 41.275 million from Supreme Foodservice GmbH, based in Switzerland, after the U.S. District Court affirmed the award of an independent arbitration panel in favor of Agility and PCA which determined that Supreme breached a consulting agreement. Agility’s share of this transfer was approximately $US 23.1 million inclusive of various legal fees and expenses. The impact of this settlement will be recognized towards the company’s profits; however the timing of the recognition can only be determined after the review and approval of our auditors as per the accounting standards.

Online & mobile service makes it easy to buy, sell, move goods locally and globally

DUBAI – Agility, one of the world’s largest logistics companies, said it will invest $100 million over three years to launch Shipa.com, a digital logistics platform that lets businesses, entrepreneurs and consumers manage their freight, e-commerce, and urban deliveries online.

“Shipa.com makes life easier through technology, whether you are a small business running your supply chain with a few clicks, or a consumer getting your shopping delivered with a few taps on your phone,” Agility Chairwoman Henadi Al-Saleh said. “Shipa.com makes logistics convenient, jargon-free, trackable, accountable and accessible.”


Shipa.com’s service lines:

  • Shipa Ecommerce gives online merchants access to some of the world’s fastest growing and most complex e-commerce markets. Shipa Ecommerce offers integrated freight, fulfilment, delivery and returns solutions across the Arabian Gulf with additional reach into the EU and Africa planned for the near future. Customers are cross-border retailers based in the US, EU and Asia, as well as regional merchants based in the Middle East. Shipa Ecommerce solutions are underpinned by easy-to-use digital integration: APIs and web interfaces such as checkout integration with customer portals, websites and apps.
  • Shipa Delivery offers businesses and consumers on-demand same-day, next-day or cross-border delivery across the Arabian Gulf. Intuitive and easy-to-use, the platform is accessible by mobile or directly integrated with its business customers’ systems, and provides solutions to optimize for speed, convenience, and affordability. Hassle-free delivery is now a reality.
  • Shipa Freight allows small businesses to get instant and transparent freight quotes, and to book, pay and track ocean and air shipments around the world on any digital or mobile device. It is the industry’s first and most advanced fully integrated online freight service, and is available in 100+countries.

“Logistics is the backbone of commerce. But it’s complex, and that complexity is disproportionately difficult for small businesses to navigate. Small businesses often lack access to the logistics resources, tools and solutions that larger businesses have,” Al-Saleh said. “No wonder then, that we interviewed 800 small and medium-sized businesses around the world, we found that 78% wanted to see their logistics move online. Shipa helps close that gap, empowering small businesses to take advantage of the opportunities being created by the global digital economy.”

Shipa.com is powered by Agility’s global network and infrastructure. Agility operates in more than 100 countries with 22,000 employees, and has warehouses in strategic locations around the world. It is the largest private owner of industrial real estate in the Middle East and Africa, and a leading developer of and investor in logistics technology.

Al-Saleh described Shipa.com as “Agility’s innovation arm,” accelerating the introduction of technology, development of new digital products, and the overall pace of change in both the parent company and the industry more broadly.

“Shipa.com is the marriage of Agility’s logistics expertise and resources and the digital-first capabilities of the Shipa platform. It offers enormous value for our customers and brings new value to our company,” Al-Saleh said.

About Shipa

Shipa is a digital logistics platform that helps businesses, entrepreneurs and consumers move goods across borders or across town with a few clicks. Shipa Freight helps small and medium-size businesses move freight around the world and tap into opportunities offered by the global economy. Shipa Ecommerce manages e-commerce fulfilment, delivery and returns across the Arabian Gulf for merchants based in the US, EU, Asia and the Middle East. Shipa Delivery provides hassle-free, same-day, next-day and on-demand urban delivery services across the GCC. Shipa is the innovation arm of Agility, one of the world’s largest logistics providers.

For more information about Shipa, visit www.shipa.com

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