Freight Forwarding

A wave of digital disruption surfaced in the freight forwarding sector a few years ago, with startups, suppliers, and even shippers using new technologies to develop a variety of innovative trade solutions, but the arrival of the COVID-19 pandemic poses the ultimate challenge to these new models.

A wave of digital disruption surfaced in the freight forwarding sector a few years ago, with startups, suppliers and even shippers using new technologies to develop a variety of innovative trade solutions. But the arrival of the COVID-19 pandemic poses the ultimate challenge to these new models.

January shipments—at 1,026,714—fell 3.6% annually. And containerized freight shipments were off 2.8% annually, with Panjiva saying that it was notable there was a decline even with the earlier timing of the 2019 Lunar New Year. Looking back, for calendar year 2019, total shipments—at 12,243,739—slipped 1.0% compared to 2018, marking its worst annual output going back to 2009.

Freight forwarding merger and acquisition (M&A) activity north of a border remains a key focus area for Toronto-based Manitoulin Global Forwarding (MGF), a subsidiary of the Manitoulin Group of Companies, with the company announcing this week it has acquired Montreal-based Associated Cargo Specialists (Canada) Inc. (ACS) Logistics.

The numbers are in, and thanks to significant merger and acquisition activity, some of the top tier players have shifted a bit. However, industry analysts note that intangibles related to service levels and digitization blur some of the lines in the rankings.

Are rumors of yet more consolidation in the Freight Forwarding sector finally dying down? Not by a longshot, says Nick Bailey, head of research for the London-based consultancy Transport Intelligence.

Technology is driving the rapid evolution of business and global trade. It’s time for freight forwarding to change, too.

C.H. Robinson announced yesterday it has acquired Madrid, Spain-based international ocean and air freight forwarder The Space Group, in an effort designed to further expand its Global Forwarding business segment.

While the outcome had been predicted in industry circles, the verdict that Basel, Switzerland-based global 3PL and airfreight forwarder Panalpina will not be acquired by Hedehusene, Denmark-based global 3PL DSV is now official.

While DSV acknowledged that a combination of DSV and Panalpina would create a leading global transport and logistics company with significant growth opportunities and potential for value creation, adding that a combination presents a unique opportunity for both companies and their respective stakeholders including shareholders, employees, customers and suppliers, it now appears that the chances of a deal coming to fruition are less than likely.

Hedehusene, Denmark-based global 3PL DSV said this week that it confirmed that it made “an indicative and private proposal” to the board of directors of Basel, Switzerland-based global 3PL and airfreight forwarder Panalpina to acquire the company.

Missed or late deliveries, for example at Christmas when products may need to be sent on elsewhere once wrapped and need to hit postage deadlines, can impact hugely on the customer’s emotional response to your brand.

When Damco’s Supply Chain Services and Maersk Line’s Ocean Product are finally integrated On January 1st, 2019, A.P. Moller - Maersk hopes that shippers will have “fewer touchpoints” and more comprehensive offerings.

The global economy relies on freight services to move goods from one side of the world to the other. The door-to-door freight delivery chain can be extremely complex as goods move across international borders using any combination of land, sea and air carriers.

In the current rush to digitize for operational efficiency, forwarders must not lose sight of immediate shipper needs. The transition must be smooth, valuable and completely transparent—but is that happening?