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Meeting the challenge

Staff -- Logistics Management, 8/1/2002

In the wake of Sept. 11, many freight forwarders were forced to scramble to meet shipper demands for speedy deliveries. Because they don't operate their own planes and often depend on the scheduled airlines for lift, forwarders were forced to innovate when the air carriers cut back on flights in a depressed market following the terrorist attacks. To meet that challenge, many freight forwarders ended up diverting scheduled air shipments to the highways.

Our readers took careful note of which carriers continued to provide quality service in these turbulent times. Ten forwarders were singled out for their service excellence this year. Six of those 10 also earned Readers' Choice honors last year. Repeat winners were Lynden Air Freight, USF Worldwide (Seko), EGL Global Logistics, Kintetsu World Express, Pilot Air Freight and Nippon Express USA. Joining them in the winners circle were UPS SonicAir, Expeditors International, Danzas AEI Intercontinental and BAX Global.

Lynden Air Freight led the pack with a weighted score of 33.16, followed by USF Worldwide Seko with 33.15. All 10 of those forwarders earned a higher grade than the average weighted customer satisfaction score of 31.46. That composite score, incidentally, slipped a bit from last year's grade of 31.97.

The forwarders' ratings rose in only two categories this year. On-time performance jumped to 10.19 from 9.91. Given the circumstances surrounding Sept. 11, the higher grade represents quite an achievement. The value rating also climbed to 7.43 from 7.18. Again, shippers clearly appreciate that forwarders have been able to keep their commitments under trying circumstances.

Numbers did fall in three areas, though. The grade for information technology dropped to 3.81 from 4.10, the grade for customer service slipped to 6.52 from 7.12, and the equipment and operations rating slid to 3.51 from 3.65.

Still, freight forwarders continue to play a vital role in the supply chain. These middlemen between shippers and carriers provide such extra services as customs clearance, logistics management, information technology and special freight handling. Many of them work hand in hand with air carriers, while others assist ocean liners in getting freight to and from the port. Many focus on particular foreign markets or specific commodities such as perishables or high-value goods.

The winners listed here clearly have demonstrated a superior degree of service excellence. As intermediaries between the shipper and the carriers that actually move the cargo, they are responsible for the smooth, time-definite delivery of freight. The companies named here are ones that excelled in the past challenging year, in our readers' opinion.

Table Head
Freight ForwardersOn-Time PerformanceValueInformation TechnologyCustomer ServiceEquipment & OperationsWeighted Score
Lynden Air Freight11.117.543.936.903.6833.16
USF Worldwide (Seko)10.737.903.807.063.6633.15
EGL Global Logistics10.607.893.906.923.5332.84
UPS SonicAir10.927.554.296.393.6732.81
Kintetsu World Express10.707.833.926.543.5132.51
Pilot Air Freight10.627.683.806.723.6232.44
Expeditors International10.267.714.126.833.5032.42
Danzas AEI Intercontinental10.637.623.906.493.6532.29
BAX Global10.487.483.906.683.6332.17
Nippon Express USA Inc.10.707.403.736.313.4931.63
Average10.197.43 3.81 6.52 3.51 31.46
All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average weighted importance of each attribute (1=least important; 5=most important). To find the attributed weights for this category, see the table titled "Performance Attributes' Importance Ranked by Mode" in the introduction to the Quest for Quality report.

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