News / Unlicensed operators wreak havoc in Latin American forwarding sector

© Alexei Poselenov

“An incredible rise” in unlicensed, unregulated one-man forwarding operations is posing a threat to Latin America’s forwarding community.

Vice president of Interworld Freight Farouk Gomati told The Loadstar the surge in “effectively illegitimate” operators was chipping away at profit margins.

“In most Latin American countries the word loyalty between clients and forwarders doesn’t exist, they will drop you for $10,” he said.

Small forwarders in particular were feeling the pinch, he added, because these one-man operations did not try to compete with larger, multinational operators.

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