Deal flow in the global transportation and logistics industry was down 45 percent in the second quarter from the first quarter of this year, but trucking deals were up
, according to a recent report released by PricewaterhouseCoopers.

In the entire transportation and logistics arena, 11 deals worth $1.4 billion in value were reported in the second quarter, compared to the first quarter 2009, when 20 deals worth $3.1 billion were announced, putting 2009 deals on pace to be 67 percent lower than 2008 levels.

Over the first half of 2009, the contribution of U.S. entities to overall T&L deal activity was lower, with U.S. entities involved in 10 percent of deals so far, versus 29 percent and 20 percent in 2007 and 2008, respectively.

The report, called "Intersections: Second-quarter 2009 global transportation and logistics mergers and acquisitions analysis," attributes the declines in deal activity to the global economic downturn.

Passenger air and trucking modes saw an increase in deal flow during the period. Trucking targets rose to 12 percent in the first half from 5 percent in 2008.

Deal activity in the BRIC countries, which includes Brazil, Russia, India and China, is increasing. BRIC acquirers and targets were 20 percent and 26 percent of the deals in the sector, respectively. This is an increase from 2008 levels, when it was 15 percent and 18 percent. In addition, Asia and Oceania accounted for the majority of deal flow for deals greater than $50 million, at 39 percent.

"Two interesting trends we are seeing in this sector include an increase in the number of distressed deals as well as a lack of initiative from the financial investors," said Klaus-Dieter Ruske, global T&L leader for PricewaterhouseCoopers.

For information and to access the full report, visit www.pwc.com/us/industrialproducts.