Does size really matter on the merry-go-round that is forwarding?

Messe Munchen

Does size matter?  

It was the biggest question at the (horror) show that is Transport Logistic in Munich this week. 

Whether it be size of stand, or size of company, forwarders were out in full force, demonstrating their tech, their marketing spend, and in some cases, their chutzpah. 

The ripples from the takeover of DB Schenker by what is fast becoming known as “arrogant” DSV were very much in sight. And there could be a new kid on the block, offering a similar vibe to Schenker (which has, frankly, always been a bit ballsy, culturally speaking). 

When Maersk swallowed Damco, for example, DB Schenker immediately offered its customers a package, promising stability. 

And now it is the turn of another company to step in to those big German shoes.  

Rhenus is trying to take over that Schenker vibe. It ran a series of ads at Munich, ‘Others are busy with their mergers. We’re busy with our customers business!’

And the customer exodus from the Danish behemoth was most warmly welcomed in the forwarding arenas, with some (German) forwarders unable to contain their glee at the new business prospects. 

But there was also talk of the prospect of a new DSV lookalike. Is that what CVC Partners – failed bidder for DB Schenker – is hoping to do with Scan Global Logistics? Several observers think so.

Judging by the recent influx of veteran forwarders at SGL, particularly in the perishables field – CVs listing Panalpina and Kuehne + Nagel – Scan is certainly looking for excellence and growth in that sector. Maybe a strategy for world domination is a Danish thing, and Scan will be the next to decide size really matters. 

It is of course not just an exodus of customers at DSV – there will also be the drip, drip of management resignations and redundancies – and with them, the inevitable chit-chat about what sort of an employer DSV really is. (Keep watching theloadstar.com for more stories on that, coming soon…) 

Other talk was of CargoWise. Will DSV keep it – or use some of its Schenker tech as leverage over the mightily expensive WiseTech product? Will rival forwarders on CargoWise kick up a stink over the lack of competitive advantage if all the big boys use the same technology? And can prices for its TMS really keep going up?  

Talking of price, the spend at Munich was extraordinary. No one could say logistics isn’t a wealthy industry. The costs of exhibiting seemed to range from €20,000 to €200,000 for a reasonably sized stand. And some were not reasonably sized.  (Although amusingly, one of the world’s largest companies – Amazon – had one of the exhibition’s smallest stands – essentially just a desk, in fact, owing to a late booking request apparently.)

Messe Munchen, the recipient of all these funds, does not break down its revenues per exhibition, but sales in 2023 for all its German events – Transport Logistic is about the third-largest – came to some €353m.

The word on the floor was that this year companies were not promised their stands from the previous event, but had to ‘rebid’ for space. It would be unsurprising if this Transport Logistic netted record revenues from its 2,670 exhibitors, 77,000 visitors, and 150,000 sq metres. 

And while we are on the numbers, The Loadstar’s step count hit 25 miles over two and a half days; per person. As my colleague said, wearily: “Logistics isn’t for the weak.” 

But other words to live by include this line to The Loadstar from the CEO of a major forwarder: “If a forwarder offers you something for free, you should definitely take it.”  

Shippers, take note.