The ongoing debate about the necessity of forwarders for airlines resurfaced at CNS in Dallas this week. A senior airline executive, speaking off-the-record, expressed frustration with asset-owners not maximizing profits while forwarders continued to benefit, suggesting that airlines could do without them. In response, a senior forwarding executive argued that airlines lack the customer interaction and adaptability that forwarders provide, highlighting the value in offering various services tailored to individual customer needs.
As airlines increasingly engage directly with shippers in the e-commerce sector, their confidence in managing end customers may be growing. This sentiment was evident at CNS, where discussions between airlines and forwarders took place to finalize agreements for the upcoming year. Brandon Fried, executive director of the Airforwarders Association, criticized the notion that airlines could operate without forwarders, emphasizing the complexity of logistical challenges that often require a multi-modal approach and specialized expertise beyond air cargo.
While some airline executives acknowledged the importance of forwarders, concerns were raised about forwarders promising low rates to customers and negotiating rates below cost with airlines. The senior forwarding executive countered that responsible forwarders assess market costs and prioritize long-term profitability for both parties, ensuring that carriers can sustain the business in the long run.
The contentious relationship between airlines and forwarders underscores the evolving dynamics of the air cargo industry, where collaboration and understanding of each other’s roles are essential for mutual success. The debate continues as both parties navigate the ever-changing landscape of global trade and logistics.
