NEWS\\\


Issue 1 2013


New body to drive up freight forwarding network standards


A new ‘association of


associations’ has been formed to improve standards among global freight forwarding networks and differentiate bona fide, high-quality logistics networks from what its founders say is a growing number of ‘rogue’ networks . The Elite Association of


Logistic Networks (ELITE) was officially launched on 11 December with nine major global logistics networks as founding members that meet the qualifying criteria and with a combined membership of over 3,550 freight forwarding companies around the world, with annual revenues in excess of US$60 billion. They are: Global Logistics Network, Global Project Logistics Network, Lognet Global, Project Cargo


Network, Time Critical Logistics Alliance, Universal Freight Organisation, WCA Family of Logistic Networks, WCA Projects Network and Worldwide Partners Alliance. In a statement, the Elite


founding members said: “There are new networks appearing almost daily that do not have the same ideals and standards that Elite member networks embrace.” Many had “dubious practices,” provided poor quality services, offered unsubstantiated benefits, lacked proper financial backing and did not implement membership vetting procedures. “This not only damages the reputation of logistic networks as a whole, but also creates much confusion among freight forwarders, shippers and the logistics supply


chain,” it added. Elite aims to apply strict


membership criteria to give the industry a ‘seal of quality’. These include financial standing, whether the network has its own registered offices and full- time staff. It will also represent the


independent freight forwarding community alongside major global industry associations, regulators and government agencies. For the first time the independent sector has a powerful and unified voice to ensure the interests of small and medium-sized freight forwarders are considered, it said. Elite’s communications


coordinator, Dan March said that the plan was to recruit other networks that met the grouping’s


quality criteria and in fact a number had already applied to join. Further announcements would be made over the next three months, he said. Mr March estimates that there are now something like 200 forwarder associations around the world, although by no means all would meet Elite’s quality criteria. Both exclusive and non-


exclusive networks are eligible to join Elite. The former type of network restricts the number of companies from a particular country or region that can join; the latter have a more open membership structure. The new organisation is


funded by its members, with each having a seat on the board. Mr March is currently the only member of Elite with a specific job title but it was possible that


a more formal structure with its own dedicated staff would be introduced, he said. Dan March told FBJ: “There


was increasing concern about a number of ‘rogue’ networks and the idea was to provide clarity for forwarders and shippers. To some extent, the independent forwarding sector was


being


damaged by the activities of some rogue networks.” He added that organisations


such as IATA saw an association of networks as providing a conduit whereby


it would


be able to reach smaller independent forwarders – many of whom were more likely to join a network than their national forwarder’s association. This would help facilitate projects such as e-freight, said Mr March. There was also evidence that


13


airlines and shipping lines were keen to cultivate forwarder networks with both IAG and Etihad recently signing deals with such groupings, Mr March continued. “I would encourage any airline to do that, or


to


approach Elite,” he said. It could give the independent forwarder sector access to rates, capacity and IT integration that had hitherto been the preserve of the big mulitnationals, he believes. Similarly, some of the networks had been cultivating links with ocean freight portals such as INTTRA. He concluded: “We probably


already have close on 10% of global forwarding business in Elite now – but the percentage could increase even further.”


www.elitelogisticnetworks.com


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