Freight forwarders brace for change

In an otherwise troubled economy, some U.S. shippers are heartened by the fact that the weak dollar has meant more revenue return on exports. Domestic freight forwarders should be happy, too; but in the global arena the fight for middleman “market share” is more heated than ever.
By Patrick Burnson, Executive Editor -- Logistics Management, 11/1/2009

According to Global Freight Forwarding 2009, the recent report compiled by London-based Transport Intelligence Ltd. (Ti), this dynamic sector “is in the eye of a recessionary storm.” In fact, industry analysts who’ve examined market growth rates from 2008 and the first half of 2009 note that since the middle of last year there has been a massive reduction in demand for all forwarding services.
“The magnitude of the fall suggests that the sector is undergoing a systemic change,” says Ti analyst John Manners-Bell. Furthermore, notes Manners-Bell, the market environment for freight forwarders is changing quickly, not only in terms of geography and type of business, but also by the competitive position of industry players.

Freight forwarders brace for change: "According to Global Freight Forwarding 2009, the recent report compiled..."

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