News / Rather than getting bigger, SME forwarders should focus on getting better

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SME forwarders are gaining a competitive edge over larger companies as “shippers are becoming more aware of the trade-offs” between scale and transparency, according to co-CEO of CargoTrans Anthony De Filippis. 

He told The Loadstar carriers “understandably focused on volume”, so when capacity becomes scarce, smaller forwarders with small volumes to ship “can find themselves deprioritised, sometimes with little notice”.  

This has led to increasing consolidation among forwarders to increase volumes and gain “clout” with larger carriers, according to Stephanie Loomis, head of ocean freight Americas at Rhenus Logistics. 

“It’s a reality of the current landscape,” said Mr De Filippis, but he added that “this is also where SME forwarders have the chance to differentiate” from their larger counterparts.  

“[SMEs] respond with agility, creativity, and a level of service that’s hard to match at scale,” he explained. “While we may not have the biggest contracts, we often solve the most complex problems, and do it fast.”  

He noted that where larger players might only have access to space with carriers they sign large contracts with, SMEs “often work with multiple agents at origin” to secure space.  

And, as well as the flexibility advantage, Mr De Filippis said SMEs had the upper hand when it comes to customer relations and accessibility.  

“I think many BCOs still remember what happened during the pandemic, and are looking to keep a diverse portfolio of NVOs and logistics partners. Shippers are becoming more aware of the trade-offs.  

“While large forwarders may offer scale, we hear time and again that what customers really want is reliability, transparency, and responsiveness — especially when disruptions happen,” he explained. “That’s where SME forwarders like us thrive… Simply put, we care more.” 

Mr De Filippis told The Loadstar CargoTrans had been approached many times by larger players “about potential M&A”.  

“Our industry is ripe for consolidation. It is highly fragmented, and I anticipate much more consolidation in the years to come, especially as baby boomer founders exit their business,” he said.  

However, he added, as industry fragmentation “is quite deep”, to create an organisation that represents a large chunk of the market would be a lengthy process .  

And so, rather than getting bigger, Mr De Filippis explained the focus was on “getting better, more efficient, and forming true partnerships with SME BCOs and become an extension of their team”.   

“The market’s changing, but there’s a strong future for forwarders that bring value beyond just price and capacity,” he concluded.