Freight News, IT Suppliers, Logistics, Forwarding

Go digital or go under, says freight expert

[ April 10, 2019   //   ]

Freight forwarders need to stop focussing on pricing and embrace digitalisation – or get left behind – said SeaIntelligence Consulting founder Lars Jensen told the WACO System’s recent Annual General Meeting (AGM) in Limassol, Cyprus.

In his keynote speech, Jensen told WACO members that “Digitalisation is something that should be embraced and that you cannot ignore, if you don’t jump on the train, you’ll end up under it.”

He added that while the expense and technical issues surrounding digitalisation are often highlighted as obstacles by freight forwarders, smaller businesses are more likely to benefit because digitalisation boosts efficiency in targeted, niche areas that freight forwarders normally specialise in.

He added: “There is a general feeling in the freight forwarding market that the transparency that digitalisation brings will lead to a race to the bottom as companies compete to lower their prices. But research by Sea Intelligence Consulting in 2018 found that 49% of cargo owners did not go for the cheapest offer at the time of booking, meaning there is plenty of space to develop brand and service strength instead of focussing on pricing.”