What Do Successful Freight Forwarders Do Differently?

Aug 10, 2017 | Services | 0 comments

In 2015, freight forwarding companies across the world experienced shrinkage in business to the tune of 1.6%. Estimates also show that there is a slowing down of growth every year in sea and air freight. Most shipping companies are said to be facing their eighth consecutive year of economic crisis.

Pressures freight forwarders face:

According to a report by Drewry, the expenditure incurred by freight forwarders in terms of managing carrier rates amounts to $500 million annually. Close to one million dollars is spent by the biggest freight forwarders to manage labor costs alone.

Ever increasing competition and market pressures are shaping the coping strategies adopted by most freight forwarders to stay in the game. Technology innovations and demands by the consumer to provide real time information are adding to the pressures.

In a survey, a majority of freight forwarders believed these pressures would further intensify in the coming days while 30% believed they would remain at the current level.

Despite these pressures, some high performing freight forwarders registered a 13.4% growth rate while returning 7.5% to shareholders in the three years preceding 2016.

Best practices of successful freight forwarders:

Here are some of the factors that helped these freight forwarders succeed:

Acquisitions: Successful freight forwarders ensured their growth by making intelligent acquisitions across the globe. By increasing presence in countries like China, Mexico, India and Brazil, these companies leveraged the highly profitable regions.

Flexibility: Given the market fluctuations and pressures, agility and speed matter the most to beat the competition. Top performing freight forwarders are flexible enough to deliver the right service to the customers at the right time. The market leaders have opened new lines and links to particular geographic locations as well as globally.

Expertise: Top performing companies are invested in acquiring relevant expertise in the industry that goes beyond traditional solutions. The successful freight companies are also better collaborators and up to date with the fast evolving technology. Transparency and real time information are the key demands of the customers in the logistics industry. The top performers have leveraged IT to provide complete visibility across the entire logistics chain.

Automation: High performing freight forwarders are aware of the importance of achieving operational efficiency and increasing productivity. The companies have made use of strategies such as increasing transport capacity, use of shared services and automation.

Automation is the buzz word in logistics with many companies investing in a big way in artificial intelligence and process automation. Automation improves profit margins by saving time and labor costs.

Now that you know some of the many aspects that classify a freight forwarding business as successful, it is time to start thinking what you can do to improve your business and make it even more successful.

Oceanstar has built a favorable reputation as a global transportation logistics and procurement partner over many decades. We provide the advice and supply chain management you need, whether it be for the procurement of products or the transportation of cargo via ocean, air, trucking, or rail. Click here to learn more about our network and contact us if you would be interested in speaking with an Oceanstar representative.

[mashshare]

Global Guidance. Trusted Partnership.



Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

×

James Conolly

James oversees financial planning, manages risk, and evaluates strategic growth opportunities for Oceanstar as well as liaising with existing and potential investors. Prior to joining the company, James worked in banking, most recently with Barclays Investment Bank. During his 18-year banking tenure, James worked across multiple industry sectors, including Transportation and Logistics where his consultative approach to financial risk management has safely steered many companies through turbulent market conditions. James relocated from the UK to Southern California in April 2016 with his wife and two children and has wasted no time in learning to surf.

×

Cara Conolly

 

Cara guides the Oceanstar team in the realm of Human Resources, operations, and payroll. Co-founder of the company, she draws from her many years as an educator and her studies in psychology to help develop the potential of each member of the team. Cara’s greatest strengths are her strong business acumen, solution-based orientation, and real connection to people. Cara loves cooking, hiking, traveling, and spending time with family and friends. She is married with two children.

×

Irene Lim

Irene Lim spearheads Oceanstar Group’s Sourcing division with responsibility for all aspects of the business including sourcing, trading, import/export, and logistics. Prior to joining Oceanstar, Irene was the Export Sales Manager for ARC Air Logistics. A veteran, with over 30 years of experience in commodity sales, sourcing, and freight forwarding, she brings extensive knowledge, a true sense of urgency, negotiating prowess, and well-established contacts that enable her to execute seemingly impossible deals. Because helping and serving others is her passion, Irene makes herself available to her customers with full dedication. Irene loves to cook, spend time with her three daughters, and unwind with her DVR.

×

Logan Moore

Logan manages Oceanstar’s Global transportation division with responsibility for business development, agency alignment, staffing, and regulatory oversight. Most recently, he served as a Director of International Pricing at Suddath Global Logistics. Logan began his 30-year freight forwarding industry tenure as an import documentation runner and warehouse employee. Through his advancement, he has learned every aspect of the business while building steadfast relationships. Logan’s nuanced industry knowledge and exceptional negotiating skills benefit Oceanstar’s partners at every turn. Raised in Chicago with a particular love for the game of baseball, Logan was a long suffering Cubs fan but with the Cubs ending a 108 year drought his loyalty has finally paid off.

×

Paul Conolly

Paul leads the Executive Team for the Oceanstar Group. Prior to founding the company, Paul enjoyed a distinguished career with OOCL–both at sea and ashore. At sea, Paul rose through the ranks to become OOCL’s youngest captain at the age of 27. After coming ashore, he held key management positions in both Asia and North America. Paul’s greatest strengths are his industry experience, critical thinking, and his leadership that extends to developing people and building robust teams and partnerships. Paul is a lifelong learner who is actively involved in supporting education. He has served on a number of non-profit Boards in the past, including the Waldorf School of Orange County, and is currently on the Board Of Trustees for the Association Of Waldorf Schools Of North America. Paul is married with two children and is an avid soccer fan.

×
robotic-process-automation-technology-freight-forwarding-future

Subscribe To Our Blog

Stay up to date on the latest news with

Oceanstar Inbox Logistcs. 

You have Successfully Subscribed!

Share This