Digitisation does not mean a race to the bottom, says analyst
DIGITISATION will not result in a race to the bottom on pricing for forwarders, according to SeaIntelligence Consulting founder Lars Jensen, reports London's Air Cargo News
DIGITISATION will not result in a race to the bottom on pricing for forwarders, according to SeaIntelligence Consulting founder Lars Jensen, reports London's Air Cargo News.
Speaking at the annual general meeting (AGM) of the forwarder association WACO System, Jensen warned that forwarders need to embrace digitisation or get left behind.
'Digitisation 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 said.
'From my experience in the industry, digitisation is not what determines profitability, it is the people that do that.'
'There is a general feeling in the freight forwarding market that the transparency that digitisation brings will lead to a race to the bottom as companies compete to lower prices,' Mr Jensen said.
'But research by Sea Intelligence Consulting in 2018 found that 49 per cent 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.'