‘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.