Forwarders
integrators. As an example, there are couple of dozen flights a day between London and Paris, and almost that number between London and Hong Kong. Multiple direct flights allow more service options and faster transit times, certainly internationally, than using a hub and spoke system. Why did the freight forwarders and airlines
One major drag on the growth of the smaller
provider is ‘purchasing’. In the 70s, decisions for which providers to use were made in the warehouse by the transport manager. In order to get the most out of their purchasing power, selection of provides has shifted from the transport manager to the purchasing manager. One of the biggest changes over the past 40
years has been the emergence of the express integrators. Although the integrators started out moving small packages, they have moved up the ladder into heavier freight. In 1972 FedEx didn’t exist; UPS didn’t even deliver in every state in the US and DHL spent most of its time moving ship manifests out of San Francisco to Asia. In 1972, the average shipment weight of a freight forwarders consolidation was under 25kg and the mean weight was close to 5. Where did all these small shipments go? To the express integrators. Why? Because the airlines and freight forwarders couldn’t pool their resources to compete. The integrators have also led the way with
scanning. Scanning services a dual purpose – it automates the handling process and it enables customers to know where shipments are accurately and instantly. Forty years ago, and today, if you combined
the coverage of a global freight forwarder with the network of the commercial airlines, you could provide a superior service to any of the
lose out on the small package business? Two reasons. First of all, the freight forwarders couldn’t get their minds around not charging, and making money, out of ‘accessorial’ charges. For smaller shipments, charges for customs clearance, airline handling, documentation, etc, were far more than the freight charges. They didn’t see the potential of moving a lot of small shipments. Even if they did, the airlines were not
interested. The airlines were interested in passengers so laying on special services for express and maintaining or adding flights for cargo wasn’t in their game plan. Today, the international express market is worth over $85 billion annually with profits estimated to be close $15 billion. That’s billions that would come in handy in the present state of the commercial airlines – if only they had seen the opportunity. I’ve saved the biggest change to last –
containerisation on the sea. Containers have made shipping by sea faster, cheaper and more efficient. Without containerisation, globalisation
wouldn’t have happened. I’m going to finish with where I started –
backing into the industry. The international logistics industry is exciting and dynamic. At all levels you deal with people all over the world. Travel happens more often, and at lower levels than any other industrial sector. It’s like a permanent gap year. Logistics is vital to the world economy. One of the challenges of the industry is not
to have people ‘fall’ into logistics, but to choose it as a profession. Maybe it will take another 40 years until we get there.
Larry Woelk is Director of international and Business Development at BiS Henderson Search & Recruitment
17 One of the challenges of
the industry is not to have people ‘fall’
into logistics, but to choose it as a
profession
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40