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SME Forwarders Advised to Adapt Amid Carrier Integration and Market Changes

by Ian E.
05/10/2024
in Industry, Logistics & Transportation

John Manners-Bell, founder of Transport Intelligence (Ti), has suggested that small and medium-sized enterprise (SME) forwarders should not be overly concerned about large shipping carriers expanding into forwarding. Speaking on recent acquisitions by major carriers such as MSC and CMA CGM, Manners-Bell emphasized that these moves are primarily aimed at providing comprehensive supply chain solutions for larger clients.

Discussing MSC’s acquisition of Clasquin and CMA CGM’s addition of Bolloré and Ceva Logistics, Manners-Bell told The Loadstar, “As far as small and medium-sized forwarders go, I do not see any real need for concern over carriers looking to build out their forwarding capabilities. The shipping lines are seeking a cradle-to-grave supply chain solution for their bigger customers as part of their value-added services.”

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Concerns have been raised within the industry about potential conflicts of interest, particularly regarding data sharing practices between carriers and their forwarding subsidiaries. Prior to the finalization of the Bolloré acquisition, sources within CMA CGM suggested that Ceva Logistics might not adhere to its stated policy of limiting volume allocation to CMA CGM, raising concerns about data sharing between forwarders and the carrier’s logistics arm.

Despite these concerns, Manners-Bell believes that the acquisitions are not aimed at restricting SME access to shipping lines. “I don’t really believe SME access to shipping lines will be compromised by carriers buying forwarders, because this is not the rationale behind these acquisitions,” he noted.

Instead, Manners-Bell highlighted the importance of adapting to the “Amazonisation” of the logistics sector, where there is an increasing expectation for full visibility and timely updates. He noted that SME forwarders should focus on enhancing their systems to meet these expectations.

“Shippers have gotten used to the market Amazon created, which means they now expect similar levels of visibility and timeliness in their logistics operations,” Manners-Bell explained. “SME forwarders are beginning to leverage these needs, but those that haven’t yet need to build systems that can provide real-time data delivery and timing updates, akin to the experience Amazon shoppers have grown accustomed to.”

This perspective suggests that while large carrier acquisitions may reshape the forwarding landscape, the key challenge for SME forwarders lies in embracing technological advancements to enhance service delivery and meet evolving customer expectations.

Your go-to source for supply chain logistics news updates: The Supply Chain Report. Enhance your international trade knowledge at ADAMftd.com.

#TransportIntelligence #SMEs #Logistics #SupplyChain #Forwarding #ShippingIndustry #CarrierAcquisitions #MannersBell #Visibility #RealTimeData #LogisticsInnovation #Amazonisation #DataSharing #CustomerExpectations #CMA_CGM #MSC #Clasquin #Bollore #CevaLogistics

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