Subscribe to our free, weekly email newsletter!


Niche forwarders can still rise to the top

Experts contend that “the barrier to entry” into the freight forwarding business is not insurmountable, noting that for those with a defined business plan focusing on specific niche marketing, there’s still room at the top
By Patrick Burnson, Executive Editor
August 23, 2011

Damco’s recent announcement that it would expand its services may have surprised some industry insiders, but not Brandon Fried, Executive Director of The Airforwarders Association.

He contends that “the barrier to entry” into the freight forwarding business is not  insurmountable, noting that for those with a defined business plan focusing on specific niche marketing, there’s still room at the top.

“The days of opening a generalized freight transportation business by the small guy may be over in favor of a more focused and specific transportation approach,” he says. “Of course, this includes offering additional services that complement the transportation of the box itself. These may include warehousing, local distribution, pick and pack or some form of commodity assembly before shipping. The sensitive, personal touch is always in demand and appreciated by customers who are not willing to be an anonymous entity with their freight company.”

Fried says that while each of the “giant” providers does interesting work, Kuehne & Nagel tends to receive lots of coverage for its creative shipment fulfillment solutions before or after the transportation cycle occurs.

“However, we cannot fail to mention companies like Expediters,” he says. “This is an outfit that is highly regarded by their customers and continues to receive accolades – not only from clients but Wall Street as well –since the firm is highly profitable in a very competitive asset free environment.”

Meanwhile, Damco remains cautiously optimistic about its prospects for the remainder of 2011.

“Our results are encouraging, especially considering the ongoing slowdown of global freight markets. Our bottom-line remains solid and year-on-year we have improved our sales of new business in the first half of 2011 by 37 percent. We are winning more and more large customers and securing strategically important wins within our key target industry verticals. We expect a continued challenging market for the rest of 2011, but our mind is still set on growth. What is also important is that these results have been achieved whilst at the same time we also invest in resources to service and develop our customers and in IT solutions and developing new and enhanced service offerings” said Rolf Habben-Jansen, Chief Executive Officer, Damco.

Finally, in August Damco acquired a majority stake in New Times Transportation in China – which will significantly further strengthen its Global Airfreight Product and make Damco a substantial player in that segment from all main origins in Asia.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Earlier today, the United States Senate signed off on a six-year surface transportation authorization, according to various media reports. The bill, entitled the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act, passed by a 65-34 margin and comes at a time, when the most recent extension for surface transportation funding expires tomorrow, July 31.

Demand for the $500 million in available funding for the United States Department of Transportation’s TIGER (Transportation Investment Generating Economic Recovery) competitive grant program was easily trumped, with applications for the seventh round of TIGER grants coming in at $9.8 billion, or nearly twenty times the available amount, DOT said this week.

Global logistics managers will be tracking the progress of the controversial Trans-Pacific Partnership (TPP) talks in Maui, Hawaii this week, as negotiating parties hope to finalize the agreement.

As has been noted in recent coverage on this site in regards to Peak Season, one underlying theme has been, and remains, how Peak Season is not what it used to be. That is not to say there will not be any Peak Season-related activity. Make no mistake, there will be and things driving it from the seasonal nature of business activity and cargo flows to higher demand and increased e-commerce activity, among others.

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Article Topics

News · 3PL · Global Logistics · Global Trade · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA