Customer focus beats carriers

Despite the cargo air carriers attempts to foster direct shipper relationships, most recently with their digital platforms, freight forwarders still control the vast majority of air freight and last month NVO’s like Noatum Logistics handled over half of US full container loads from Asia, suggesting that importers are prioritising service over assets.

The COVID-19 pandemic and the disruption it generated throughout sea freight supply chains bought into focus the issues that really matter to shippers, because price is irrelevant if there is no reliability or consistency of service.

Using a shipping line and even the largest carrier, that control ships, trucks, warehouses and other assets was no guarantee that cargo would be lifted, or shipped, for even the biggest volume shippers.

Given the critical importance of their supply chains, shippers are typically adept at selecting the right solutions for their needs, when they focus on solutions and service capability above assets that don’t directly add value.

Noatum Logistics’ NVO’s sole focus is providing consistently high-quality solutions with our proprietary technology and service culture, and by leveraging the relationships we have with all the leading air and sea carriers.

Shippers’ appreciation of the value that NVO’s can bring is growing, with the percentage of Asia import trade handled by NVOs versus direct shipper-carrier contracts increasing to 54%, an uptick of 8% in two years.

Cash-rich after the pandemic’s sky-high freight rates, carriers are attempting to differentiate themselves, by extending capabilities from a core asset-based position, but freight industry history is replete with attempts by shipping lines to extend operations up-stream and down-stream, usually with little or no success.

However, there are examples of success, most notably the rise of integrated carriers like UPS, FedEx and DHL that maintain end-to-end control over shipments via a network of planes, trucks and warehouses.

Having a history of working together on joint-ventures, the acquisition of Noatum Logistics’ by AD Ports, is a more natural extension and positions us among the leading logistics and freight forwarding companies in the world, which massively enhances the reach, scale and capability we can bring to bear for our customers – with that same consistency of service.

We negotiate long-term and FAK contracts with shipping lines across all three alliances to secure space and rates, for the widest selection of NVO services.

EMAIL Matt Fullard to learn about our NVO solutions, customer commitment and our asset based investments in warehousing and technology that lowers rates and labour costs.

Noatum Logistics is currently implementing a £multi-million investment and intensive fit out programme to create our latest state of the art eCommerce fulfilment centre in Bedford, with 530,000 sq. ft of optimised space, with the latest handling automation and robotic technology.