The ongoing move by container lines to diversify and include a forwarding arm may have left the large global players seemingly unperturbed, but for small operators, this is a growing concern.In Mozambique and the region, the trend is starting to impact small to medium (SME) freight forwarders as they are increasingly being sidelined.According to Desiderio Fernandes, representative of the Association of Shipping and Freight Forwarding Agents and Port Operators of Mozambique and current president of The Federation of Clearing and Forwarding Associations of Southern Africa (FCFASA), it is an issue that has been brought to the attention of the national associations in the region and is worrying.“The Mozambican corridors are growing and there are opportunities for freight forwarders, but SMEs face a host of challenges resulting in them not being able to access any of the opportunities that exist.”He said as more and more shipping lines encroached on forwarder territory, pushing an end-to-end logistics strategy, smaller operators in particular were facing closure.It is an issue that is of concern not only to forwarders in Mozambique but the region, says Fernandes, who has recently opened membership of FCFASA to all African countries.“From a regional and continental level, the issue is being taken up,” said Fernandes. “One must not forget that for smaller operators one of the biggest challenges is the lack of access to financing. An SME approaching a bank is expected to put down significant collateral which they often don’t have. Going up against an international shipping line that has become a freight forwarder becomes impossible.”He said there was no hope of fighting this from a country level - hence the move to a regional and continental approach. “Mozambique is taking a lead in this. From a country perspective, we have engaged the minister of transport and presented the situation to him, asking him to change our internal policy to safeguard against this encroaching behaviour. He has called all parties to present their facts and has said he will look into the matter and the policies and legislation involved.”Paulo Aquimo, a member of the Association of Logistics and Shipping Operators of Mozambique also agrees, saying that small forwarders simply don’t stand a chance against the container lines-turned-forwarders.With no timeline available – or even a commitment that the government will change policy – there’s a fear that many small SMEs will close their doors in the interim.
