Wake Up Freight Forwarders — Your Blockbuster Moment Has Arrived.
Back in 2007, when An Inconvenient Truth was winning Oscars, Viacom and it’s chain of Blockbuster stores were valued at $67 billion. At the same time an emerging, digitally focused company called Netflix had just been valued at $255 million.
Fast forward 10 years to 2018 and Netflix is now valued at $108 billion while Blockbuster has gone extinct and Viacom is now valued $14 billion.
In the 10 short years of the digital window of opportunity, a customer focused company with a strong digital strategy has increased in value by over 2,500%.
Many freight forwarders we speak to are now driven by pure fear of the new digital players who can offer cutting-edge digital solutions, are free of the burden of legacy systems and who have a growing amount of clients, each paying different rates.
The ‘Blockbusters Moment’ has truly arrived for Freight Forwarders.
If Verizon could send a message back in time to the board they would probably scream “we had the advantage, the brand, the clients, the content.. All we had to do was deliver to them digitally”.
And now freight forwarders have the choice — ‘Adapt or Die’
In March 2017, the CEO of Flexport quoted Goldman Sachs: “If Flexport grows at just 1/10th of its 2016 growth rate for 5 more years it will be the largest forwarder in the world”.
The world’s largest ocean freight forwarder, Kuehne+Nagel, move around 11,000 teu per day, while Flexport move around 200 teu per day.
That’s 55 times more volume than Flexport.
To add to that, Flexport’s volume is mainly on one trade lane — The TransPac.
Kuehne+Nagel has operations spread over the 50 main trade lanes in the world. It has invested in the support and operations infrastructure to support these 50 routes, including high margin routes like, for example, Africa to Middle East or South America to Australia.
The power remains firmly in the hands of the established players who have the hard work done. The shipping volume, the global footprint and — most importantly — the clients.
Simply put, embrace digital or face extinction.
Kontainers is a customisable, client-facing, execution platform for Freight Forwarders, deployed in an unbeatable timeframe, and with a proven track record of multiple on-time deliveries for top20 Global Groups
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