3. It’s “Game Over” for Mid-Sized Forwarders
With larger global forwarders swallowing rivals and outpricing competitors, the days of the smaller forwarder is numbered. Well, not necessarily.
One reason why there are still so many smaller players, is technology (or lack thereof). The industry was a late adopter, holding back on process automation, and staying offline. Back then, only the larger players could afford any degree of automation. But many aspects stayed manual at larger forwarders, reducing efficiency. And the technology was bulky, sprawling enterprise software that didn’t evolve.
Accessible, cloud-based technology, with the nimbleness to integrate rapidly, is now empowering smaller players. As Transport Intelligence’s latest report, Global Freight Forwarding 2016 , puts it:
“New, exciting technologies are being developed which have the potential to transform forwarding and trade processes. They could also allow small and medium size forwarders to compete more effectively against the big corporates as technology becomes increasingly cheap and democratized.”
Another reason for smaller providers to breathe easy? Niche specializations in routes or types of cargo can still win over shippers that are looking for reliability first and foremost.