Page 50: of Maritime Logistics Professional Magazine (May/Jun 2017)

49 51

STATISTICS

T e F F M 2017he volving reighT orwarding arkeT

What is a Freight Forwarder? One survey answer claimed, “The defnition, one who specializes in the arrangement of and

Logistics Trends & shipment of goods on behalf of businesses will be on top for the next ten years. It is shifting.” Indeed, says Logistics Trends

Insights LLC’s & Insights LLC, the market is not only undergoing a redefni-

April 2017 survey, based on 80 responses, reveals some in- teresting trends in the world of freight forwarding. But, who tion but it also has literally been caught in the middle of global participated in this year’s survey? Every region of the world political and economic changes. Shifts in political thought fa- was represented, led by Europe with 34.2% of the responses. voring protectionism or populism along with continued con-

These responses came from logistics providers, forwarders, cerns within the ocean and air freight markets have led many forwarders to seek acquisitions, new services and new geogra- carriers, shippers, government, and industry consultants. No- tably, logistics providers comprised 43.0% of the responses, phies in order to stay afoat. While gross revenues and volumes for many forwarders grew in the past year or so, they came at followed by forwarders with 19.0% of the responses.

a price with lower profts and in some cases, a fnancial loss.

Not surprisingly, technology – a critical linchpin for all as-

A question asked this year and also in 2016 was “As a for- pects of the global supply chain – plays a key role in all of that. According to the survey, like the many components that warder, my most critical pain point is…” and like last year, the majority of respondents indicated tight margins followed by collectively make up the supply chain, the freight forward- ing market is fragmented; something that is sparking change. rates, uncertain global environment and lastly, 13.0% said ca-

That’s because, with fragmentation comes both ineffciencies pacity. As to what Forwarders bring to the table, a new question for this year asked, “What do customers value most from a for- and opportunities.

warder?” The majority of respondents, 33.7%, indicated trade

Beyond the survey, a Global Freight Forwarding report is in expertise. However, 45% of the responses were split among low the works for early fall in partnership with Mike King of Mike

King & Associates. That project will include, among other rates, visibility of cargo movements and ease and timeliness things, analysis from the survey, an APAC forwarding index, in booking freight while 21.3% indicated additional thoughts including all of these choices: credibility, communication and market sizing, rankings and much more.

50 Maritime Logistics Professional March/April 2017 | |