‘Reputable forwarders feeling the pressure’

While a number of freight
forwarders recorded turnover
growth last year, it has not
necessarily been growth in real
terms because it was based on a
weaker exchange rate, according
to a report published by credit
insurer Coface.
The clothing and textile
industries have had a particularly
negative impact on the industry,
while specialist sectors like
generators and cosmetics, which
saw a boom at the beginning of
2008, have slowed rapidly.
With general instability in both
the local and world economies,
there’s been a marked increase in
the number of claims from freight
forwarders, the report adds.
“An alarming trend is the
number of reputable organisations
that have become financially
stretched. Long-established
organisations that have operated
on COD for years are now
requesting credit facilities and
appear to be experiencing cash
flow problems.”
And according to Coface,
2009 does not look particularly
rosy with companies advised to
be vigilant when checking on the
financial stability of prospective
customers.
“Information needs to be
accurate and up to date. A
company may have excellent
2008 financials, but its figures
for the last three months may
be poor. Before giving credit,
it is important to ascertain the
volatility of the financials as of
today, giving the exact company
situation,” Coface advises.