Global Forwarders Now Feeling The Economic Pinch

We have mentioned in several of our previous articles that carriers are struggling to manage low demand. However, according to a report in The Loadstar, this is now impacting multinational and large independent freight forwarders.

The report suggests that large-scale job cuts by global forwarders are expected to bite, as previously hidden poor results can no longer be disguised.

The article quotes one source as saying that multinational logistics providers are "shedding staff quicker than imaginable" and another stating “It will be absolute turmoil over the coming 12 months, with reduced margins, reduced profits and huge overheads that have been taken on".

Global demand for shipping went through the roof following the pandemic, which resulted in many global sized players over committing to staff, contracts and resources. However, as demand subsequently fell off a cliff, the overheads have remained, resulting in an uncertain future and in some cases - panic!

During periods of economic downturn, it is often the more flexible small and medium sized logistics providers that come to the fore. Being more agile enables us to react more quickly to market conditions, and by being independent we do not carry the excessive overheads that the slow moving networks do.

Croft Cargo are perfectly positioned to be your logistics partners through 2024, and we are very much looking forward to business as usual.

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