Fast Breakers
There’s little surprise that industry analysts are projecting a bright future for freight forwarders that can offer world-class service.
By Staff -- Logistics Management, 8/1/2007
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Quest For Quality Awards
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According to a recent report by the U.K.-based analyst firm Transport Intelligence (TI), the evolution of extended supply chains that integrate manufacturers, suppliers, and retailers around the globe has led to significant year-over-year growth for this sector.
TI’s report states that forwarder revenues—and profits—have surged over the past year as a result of the unprecedented level of mergers and acquisitions from which a smaller number of true global players have emerged.
And this year’s Quest for Quality survey suggests that business should continue to grow and expand, as long as forwarders remain committed to shipper needs and continue to have a passion for communicating and sharing quality data.
This year, survey respondents told us that nine freight forwarders are, in fact, passionate and committed, and worthy of a trot into the Freight Forwarder’s winner’s circle.
It’s important to note that even though the overall weighted average dipped for the fourth year in a row, responding shippers tell us that overall Customer Service scores—perhaps the most critical criteria in this category—actually improved this year over 2006. Last year the average weighted score was 5.97, and this year we’re reporting a quarter point improvement coming in at 6.22.
Expeditors International can hold its head high in 2007, posting an impressive 34.74, a slightly higher grade than last year’s category leader FedEx Trade Networks. Expeditors also earned top overall marks by winning the individual races in On-time Performance (11.69), Information Technology (4.70), and Customer Service (7.03).
Even though we seem to have a new company at the top of this category every year, we have identified a few perennial favorites. As a matter of fact, Lynden Air Freight (33.56) makes it eight years in a row in the winner's circle and BAX Global (31.45) and UPS Sonic Air (31.08) take honors in this category for the fourth year in a row. Although BAX scored well in 2006, the company saw some improvement this year in its On-time Performance score (10.26) and its Customer Service score (6.33).
FedEx Trade Networks (32.61) takes home Quest for Quality gold for the third year in a row, and Pilot Freight Services (31.06) makes it their second year in a row.
UPS Sonic Air and Pilot Freight Services both saw a jump in their Customer Service score this year over last as well. Lynden Air Freight saw an impressive jump in its On-time Performance score, this year registering a 11.38, and also improved over last year’s Value score.
Not in last year’s winner’s circle, but coming in strong this year is Kuehne & Nagel with a weighted score of 31.22, an On-time Performance score of 10.25, and a Customer Service score of 6.18.
Freight Forwarders
| On-time Performance | Value | Information Technology | Customer Service | Equipment & Operations | Weighted Score | |
| All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average importance of each attribute (1= least important; 5= most important). To find the attributed weights for this category, see the introduction to the Quest for Quality report. Source: Logistics Management, Reed Research Group |
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| Expeditors International of Washington | 11.69 | 7.70 | 4.70 | 7.03 | 3.62 | 34.74 |
| Lynden Air Freight | 11.38 | 7.87 | 4.15 | 6.78 | 3.39 | 33.56 |
| Kintetsu World Express | 11.38 | 7.53 | 3.82 | 6.79 | 3.60 | 33.12 |
| FedEx Trade Networks | 10.93 | 7.24 | 4.54 | 6.26 | 3.64 | 32.61 |
| BAX Global | 10.26 | 7.57 | 3.96 | 6.33 | 3.33 | 31.45 |
| Schenker | 10.45 | 7.24 | 4.00 | 6.35 | 3.24 | 31.28 |
| Kuehne & Nagel | 10.25 | 7.51 | 4.00 | 6.18 | 3.28 | 31.22 |
| UPS SonicAir | 11.04 | 6.46 | 4.00 | 6.10 | 3.49 | 31.08 |
| Pilot Freight Services | 10.35 | 7.27 | 3.84 | 6.30 | 3.30 | 31.06 |
| AVERAGE | 10.19 | 7.30 | 3.91 | 6.22 | 3.30 | 30.92 |
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