GLOBAL FORWARDERS\\\


Has the market share of the top global forwarding and logistics companies been changing significantly? Is it likely to do so in the future? “The global forwarding and


logistics industry is particularly fragmented and is made up of a variety of players. This creates very little variability in terms of change in market share within top companies with the exception of major organizational shiſts. Aside from the ever-present possibility of structural changes, it isn’t likely that market share in this industry will change significantly. In fact, many of the larger players in this market are shiſting their focus toward more specific sectors of business


rather than growing


their market share from an all- encompassing perspective.“ Do all top forwarders tend to


have the same approach and offer the same kinds of services, or do they seek to differentiate themselves from each other? If so, how?


“When companies reach


a particular size they tend to approach business in a similar fashion, considering that most of them are active and successful in various markets and parts of the globe. Similarly, smaller businesses will streamline their focus on smaller or more specified markets or regions. For example, European based forwarding companies are more likely to offer specialised capabilities and expertise within the European region, whereas North American based providers are likely to be stronger in markets close or similar to the US. Despite the approach, customers with global needs benefit by collaborating with transportation providers that offer a flexible and dynamic portfolio of services that allow customers to remain competitive in any market.“ How global is C.H. Robinson’s


coverage compared to the rest of the top forwarders? Is it necessary to have a presence in every continent/region or is it possible to be centered in one region and still be considered a global operator? “Since 2010, C.H. Robinson’s


Global Forwarding division has doubled in size and has a substantial international footprint with more than 3,200 employees


and over 100 company- owned offices in more than 30 countries. As a result of this growth, C.H. Robinson has become the number one NVOCC from China to the US and number two from Asia overall to the US. C.H. Robinson’s global strength and presence has expanded the company’s ability to provide a full scope of supply chain solutions to


customers


throughout the world. Although many of the top forwarders have a presence in a variety of markets, forwarders who are


centered


in one region can act global by building a strong, mature, and exclusive


network of agents.


The challenge that remains is to maintain consistency through one uniform operating platform across their networks. By operating through Navisphere, C.H. Robinson’s global technology platform, customers have access to information they need, when they need it. Navisphere offers global visibility, broad connectivity, and customizable features that create a custom technology solution for C.H. Robinson’s customers around the world.“ What are C.H. Robinson’s with


relations smaller and


medium-sized competitors? Is the relationship necessarily one of predator and prey? “C.H. Robinson is one of the


largest transportation companies in the world and competes with competitors of many different sizes throughout various parts of the world. Although these relationships are competitive at any level, C.H. Robinson’s strength in terms of global scale, overall network depth, core services, global technology platforms and financial resources provide the company with the flexibility to make decisions that drive strategic growth. This customer-centric approach allows C.H. Robinson’s global customers to accelerate their


advantage by achieving


better supply chain outcomes and outpacing the competition.” Are the big players still seeking


to acquire companies? There was a flurry of M&A activities a few years ago – has this largely faded? Do you think big global forwarders work together with smaller companies (for example, where the latter has a sector of geographic specialization?)


“Large companies in this


market are expected to continue to both grow organically and through mergers and acquisitions as they cannot let their cash remain idle. There are many reasons why businesses continue


Issue 7 2014 - Freight Business Journal


29 State-side giant set to become a global force


US-based C.H. Robinson is a US-based company that has been largely active in its home market but has become increasingly active in global forwarding. Here are senior vice president’s Stéphane Rambaud’s views on how things are shaping up.


to feel the pressure to grow in this manner including general globalisation and the growing shiſt to burgeoning markets. For instance, C.H. Robinson has made strategic moves over the past few years to service the increasing


global needs of its clients. While it


is likely that these activities


will continue in emerging and thriving markets, the patterns of structural change will differ from business to business. For example, medium companies who lack a


global presence will likely need to continue to collaborate with companies that are similar in size to cover more markets versus larger companies that typically establish themselves in a vast number of markets.”


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