‘Smaller forwarders the most vulnerable’

The freight forwarding industry is working hard to prove its resilience in the face of the global economic downturn as orders continue to be cancelled and considerably fewer goods are moved. According to Basil Pietersen, chairman of the South African Association of Freight Forwarders (Saaff), the market has become much smaller with large and small operators feeling the pinch. “It is the smaller operators who are really bearing the brunt as they do not have the benefit of large cash flows and funding. The industry will need to work hard to prove its resilience and forwarders will need to be highly strategic in their short- and long-term planning to survive the crunch and adapt to change.” According to a report by Research and Markets, an international research resource, freight forwarding has been one of the most successful sectors of the global logistics industry over the past decade, achieved largely due to the trend of globalisation which has led manufacturing to relocate to remote markets around the world. The development of economies such as China, Russia and India has also created a demand for international forwarding services. But there is no doubt that the credit crunch has brought an end to a prolonged period of growth. Speaking at the annual Saaff congress recently, Pietersen said it was important that local forwarders were aware and at the forefront of international events and trends impacting business. “We function within an industry that is hugely dynamic and constantly undergoing changes that have a profound effect on the way that we do business.”