Global supply chain leader APL Logistics has been awarded the international import logistics and freight transportation business of the $8.9 billion Army & Air Force Exchange Service (AAFES).

Under terms of the deal, APL Logistics will serve as lead logistics provider. It will oversee consolidation/vendor management, air freight, ocean transport, Customs brokerage and in-transit visibility services. AAFES ships about 3,500 FEUs (forty-foot equivalent units) of ocean cargo and 1.27 million kg of air freight annually under the contract managed by APL Logistics.

The arrangement caps a 12-year partnership between APL Logistics and AAFES and marks one of the supply chain manager's largest-ever military logistics deals. "This is an important development for us, said APL Logistics President Brian Lutt. "Not only does it provide us with significant new business, it underscores the strength of our relationship with a critical customer."

With 3,100 facilities in 30 countries, the 45,000-employee AAFES is a joint military activity providing merchandise and services to active duty, guard and reserve members, military retirees and their families.

Until recently AAFES relied on a collection of carriers and supply chain companies to handle transportation and import logistics. But under the new contract, it consolidates that responsibility with APL Logistics.