Warning shipping companies: freight forwarders are not your enemy! But forwarders who profit from price differentials will find it difficult to survive

2023-06-30 Clicks:201

  Freight forwarders are very concerned about how shipping companies have treated them over the past two years, especially for smaller ones.

  In an interview at Logistics Munich last week, WCA CEO Dan March said shipping companies saw small freight forwarders as "enemies" during the pandemic.

  "When freight rates soar and contracts are torn up, the shipping companies' practices upset a lot of people, and many forwarders feel that this practice is a bit unfair to them." Dan March said: "But now that shipping companies suddenly need these forwarders again, the situation has changed. This clearly shows the influence of freight forwarders. ”

  Air cargo rates have also risen significantly during this period, but airlines still respect forwarders, he added.

  Dan March explains: "I feel that for the most part, shipping companies still see freight forwarders as customers, and smaller forwarders as competitors, enemies who are trying to eliminate those rivals and do direct business themselves. ”

  Freight forwarders have also made money during the pandemic and there has been some consolidation in the industry, but the number of freight forwarders has not decreased, Dan March explained, because as the company has grown, specialized operators have emerged to handle specialized shipments.

  What has really changed for small freight forwarders, however, is that they are no longer relying on freight rates to make a profit. Dan March pointed out: "Any forwarder who makes a profit from the spread alone may not survive in 10 years. Freight forwarders provide value-added services to customers and are the source of future revenue growth. ”

  Source: China-Europe Rapid Rail