Freight forwarders need to stop focusing on pricing and embrace digitization – or get left behind – said Sea Intelligence Consulting founder Lars Jensen at the WACO System’s recent Annual General Meeting (AGM) in Limassol, Cyprus.
In his keynote speech, Jensen told WACO members that “Digitization is something that should be embraced and that you cannot ignore, if you don’t jump on the train, you’ll end up under it.”
He added that while the expense and technical issues surrounding digitization are often highlighted as obstacles by freight forwarders, smaller businesses are more likely to benefit because digitization boosts efficiency in targeted, niche areas that freight forwarders normally specialize in.
He added: “There is a general feeling in the freight forwarding market that the transparency that digitization brings will lead to a race to the bottom as companies compete to lower their prices. But research by Sea Intelligence Consulting in 2018 found that 49% of cargo owners did not go for the cheapest offer at the time of booking, meaning there is plenty of space to develop brand and service strength instead of focusing on pricing.”
“But research by Sea Intelligence Consulting in 2018 found that 49% of cargo owners did not go for the cheapest offer at the time of booking, meaning there is plenty of space to develop brand and service strength instead of focusing on pricing.”
The expense and technicality of digitization are often highlighted as obstacles by freight forwarders, but smaller businesses are more likely to benefit because digitization boosts efficiency in targeted, niche areas that freight forwarders normally specialize in.
WACO’s AGM, which this year attracted 115 delegates from 99 countries, provides networking opportunities for members who can take part in bilateral meetings in order to grow business.
“Every year the WACO AGM is an opportunity for our members to gather, discuss, and share ideas on the most important issues in our industry,” said Richard Charles, executive director, The WACO System.
