News / More volatility means forwarders and shippers need to work more closely

© Natalya Kosarevich

As uncertainty knocks trade confidence, forwarders need to be closer than ever to their customer, delegates at last week’s World Cargo Summit in Bruges heard.

Global head of airfreight at Scan Global Logistics David Wystrach told delegates “a major takeaway from discussions with customers” was that “no two supply chains are alike”.  

He advised forwarders that, not only did they need to be in the business of forwarding, but should also be an expert in their shippers’ industries “to be best equipped for volatility”.  

He said: “This expertise approach, where we obviously have different industries from different customers, is where we believe we can make a difference. 

“More customer-centricity will really support a resilient supply chain. And that’s what we believe is really important, going forward, no matter what the challenges.” 

Mr Wystrach pointed to a recent customer advisory board meeting that concluded the forwarder should become “more an advisor”.  

“I think that’s pretty much what [they] are asking for as well,” he said.  

Indeed, according to Jody Paulus, CEO at Finnish dangerous goods shipper Optitune: “We are going to see quite volatile times… I think the more volatility there is, the closer you have to be to your client.  

“Because if things can change very, very quickly, then we need to also be able to react very, very quickly. And that is going to come from knowing your clients, having a relationship with the client, and being able to very quickly plug into changing circumstances,” he explained.  

“OK, things may not always go the way you want, but you can go fast. Even if there is a challenge, and suddenly there is a 25% tariff for imports, then you can say, ‘OK, this is what we’re going to do to minimise this impact’. 

“If that’s how you work with your clients, then I think you’re on the right path.” 

My Wystarch advised explaining best- and worst-case scenarios, supporting strategy discussions, having a close relationship, and understanding each shipper’s supply chain better. 

Xeneta’s chief airfreight officer, Niel van de Wouw, also ibelieved that, as uncertainty – such as changing tariffs, geopolitics, or weather events – “knocks trade confidence”, shippers would want to be informed, and know their partners are equipped and ready to make quick decisions. 

“If I was a shipper… I’d have my team ready to do things differently, but I’d wait to see what actually happens, because right now there’s a lot of sabre-rattling and noise, but little clarity,” he concluded.