JAN 29 2010 SERVING THE INDEPENDENT FREIGHT FORWARDING COMMUNITY No.006 Independent Forwarders - Vital Statistics JUST one year ago a sadly deluded executive of a multinational forwarder stated that it was only a matter of time before the smaller, independent forwarders closed down and simply disappeared…. As we enter 2010, I wonder whether he is still of the same mind? I wonder if he knows why his marketshare has dropped in real terms over the past 12 months and I wonder if he knows where its’ gone? We do. They have all lost business to each other with their short-term special offers and cut-throat rate wars but a huge slice (at least in “independent” terms) of the multinationals’ business has gone to those smaller forwarders who have coped so admirably with the economic tsunami. The WCA Family of Logistics Network has conducted a recent study among its membership to determine just how much airfreight transportation is done by the network. From a response group of about 300 members who concentrate on this side of the business around the world, the WCAF was able to assemble the charts representing the total revenue generated by our top members in 2008. As can be seen, the total airfreight spend by the membership cannot be overlooked. In Australia one single member holds the second highest airline spend in 2008 just shy of DHL Danzas. In China and Hong Kong the total spend by a handful of members would collectively put them in the top five regional rankings. When looking at Asia, 72 members of the WCA Family of Logistic Networks from nine countries recorded an airfreight purchase figure in excess of US$185,000,000. Such an amount easily rivals some of the multinational freight forwarders in the region. Now take into consideration the total revenue earned worldwide by the 303 members used in the report, their revenue is in excess of US$420,000,000, a figure that demands recognition especially when considering that these numbers are generated by only 10% of the total membership of the WCA Family of Logistic Networks. The WCA Family of Logistic Networks currently has 2,846 member offices in more than 568 cities and ports worldwide and has not shown any signs of slowing in growth. With such strength and numbers the total revenue generated by the group has no limits. It is obvious that airlines and service providers now view this network as a serious entity that deserves serious consideration. As more shippers and buyers see the advantage of using independent freight forwarders, we see the WCA Family of Logistic Networks being a far more powerful entity in the transportation industry. Part of the reason that the membership is doing so well is that independent freight forwarders have been able to immediately adapt themselves to suit the economic situation – and more importantly adapt to their clients needs – allowing them to even grow their business during such economic hardship. Note to Multinationals. Check your figures. Watch your back. Europe Country AUSTRIA BELGIUM CZECH REPUBLIC DENMARK FRANCE GERMANY ITALY MALTA NETHERLANDS PORTUGAL SAUDI ARABIA SPAIN SWITZERLAND UNITED KINGDOM TOTAL Members 6 1 1 2 14 21 20 1 6 3 3 12 6 15 111 Amount USD 4,400,000 USD 1,000,000 USD 90,000 USD 910,000 USD 28,450,000 USD 27,400,000 USD 14,460,000 USD 14,000 USD 14,200,000 USD 1,160,000 USD 3,200,000 USD 7,700,000 USD 13,300,000 USD 10,200,000 USD 126,484,000 Country SOUTH AFRICA TOTAL Country AUSTRALIA TOTAL Country ARGENTINA BRAZIL PERU TOTAL Asia Country CHINA HONG KONG INDONESIA JAPAN KOREA PHILIPPINES SINGAPORE THAILAND TURKEY TOTAL Members 13 17 3 4 8 8 10 5 4 72 Amount USD 41,100,000 USD 84,000,000 USD 1,280,000 USD 16,000,000 USD 22,800,000 USD 3,610,000 USD 4,800,000 USD 11,440,000 USD 1,300,000 USD 186,330,000 Central America Country COSTA RICA MEXICO PANAMA TOTAL Members 2 5 1 8 Amount USD 641,000 USD 617,000 USD 23,000 USD 1,281,000 North America Country CANADA USA TOTAL Members 14 64 78 Amount USD 3,600,000 USD 58,420,000 USD 62,020,000 South America Members 10 16 3 29 Australia Members 4 4 Africa Members 6 6 Amount USD 2,600,000 USD 2,600,000 Amount USD 33,100,000 USD 33,100,000 Amount USD 3,250,000 USD 7,240,000 USD 760,000 USD 11,250,000