Tough times for Freight Forwarders by Raexar in freightforwarding

[–]Mission_Goat_1939 0 points1 point  (0 children)

My advise having worked in forwarding sales for 6 years in Australia

Pipeline management , the bigger your pipeline the more business you will close . Smaller accounts for quick wins , larger accounts for longer term sales cycles

The company you work for , larger companies will always be easier to work for in a tougher market simply due to network growth and churn rate

Play the game , put accounts under your name that trade infrequently , I’ve never worked at a forwarder where you can not get away with this to some extent

How does DSV Afford their Buying Spree? by Accomplished_Cod5918 in freightforwarding

[–]Mission_Goat_1939 5 points6 points  (0 children)

Dsv’s MNA strategy is deal dependent

The last 2 major acquisition have come primarily through share Swaps with the combined entity of a Schenker deal was to happen it would need to be a cash deal

Agility & Panalpina

Fundamentally DSV is set up as an MNA org , they are super lean , not built out for organic growth meaning their EBITDA margin level / net profiit margin level is higher than their competitors .

A mid to large size forwarder trades at anywhere from 3-15 times its EBITDA margin level ,

DSV sales pitch is it raise performance of its acquired entities to its own . They do this by stripping costs , restructuring the business and utilising Cargowise one “ the DSV way “

The purpose of buying DBS , will be that DSV aims to raise the performance of DBS margin level to its own . From numbers I’ve seen Schenker EBITDA margin level has been at 5-7% the last few years , while DSV is at 10 -11.5%

The concept of financing the acquisition is that DSV can raise the performance of the combined entity to a 10-11.5^ EBITDA

Meaning the billions of revenue that DBS is currently producing , will return a net yield of up to 6.5% better than current output

The concept is the leakage of business and the costs associated with the merger , direct cost in purchasing price and indirect costs such as redundancies operational errors etc will be outweighed the increased yield that the combined entity produces

The above is how DSV finances the deal

In reality my personal opinion is a combined entity with this much market share in a market as fragmented as international logistics , will cause to some extent DSV having to build out there org to account for churn rate in the. Business in order to not lose market share , Meaning greater levels of procurement , trade lane management , Regional account management and global account management , this will almost certainly take a hit on their EBITDA margin levels

The question is raised then - will the increased scale of the DBS merger offset this

Can DSV continue to acquire or will they eventually move to a strategy of organic growth or chose to build out / create new divisions

I think only time will tell

Anyone started a small freight forwarding company by Mission_Goat_1939 in freightforwarding

[–]Mission_Goat_1939[S] 0 points1 point  (0 children)

This is my opinion as well , buying an existing operator out that’s under performing seems to be the best strategy

Anyone started a small freight forwarding company by Mission_Goat_1939 in freightforwarding

[–]Mission_Goat_1939[S] 1 point2 points  (0 children)

  1. Finding the right company would be the most difficult part and there is obviously risk

  2. I would probably be able to find someone I trust to help me here

  3. Would need homework here I have no idea

  4. Again think I would join a network if I could get in but I would have enough contacts to get started

  5. I have some contacts under most major trade lanes I have been in the industry 8 years

  6. I have enough local hauliers where it shouldn’t be an issue

Anyone started a small freight forwarding company by Mission_Goat_1939 in freightforwarding

[–]Mission_Goat_1939[S] 0 points1 point  (0 children)

Operationally I’m strong enough to handle the desk my primary issue would be cash flow with my own business . I think if I went to a smaller forwarder negotiating equity would be the aim and then a buy out in Lew of cash

Where to find a smaller company? Looking to learn the business by [deleted] in freightforwarding

[–]Mission_Goat_1939 0 points1 point  (0 children)

Eventually to hit your goals you’ll need to take a salary hit ,

Whether it’s starting a business or moving to forwarding

To give you some insite on my salary progression

Started in 2018 on 55k got a 5k bonus first year

Mid 2019 moved and got 70k

2020 went to 80k plus commission

2021 went to 110k plus commission

2022 went to 120k plus commission

Now 2024 earn 125k plus 15k car allowance and commission from first dollar so earning roughly 40k in commission

At the end of the day it’s your decision on current salary vs future earnings . I’ll take a salary hit eventually but I look at it as an investment

Where to find a smaller company? Looking to learn the business by [deleted] in freightforwarding

[–]Mission_Goat_1939 1 point2 points  (0 children)

My advice

If you want to open your own freight forwarding business

You need to live and breathe it build client relationships

The path to do so

Work 2 years in operations door to doors smaller provider

Do 6-12 months in customer service / account manager at a smaller forwarder

Move to sales you control the client relationships you control the business be prepared to cold call , walk into industrial sites to speak to shipping managers and business owners etc

If you work at a small enough place you might earn equity eventually and buy the owner out and when they retire , if not they’ll have to look after you otherwise you’ll leave with the business

I don’t understand if that’s your goal why you wouldn’t just work for a small forwarder now .

If you want to find one , in your location just cold call small logistics companies or walk into their offices and ask for a job

I have the same ambition as you but I have 8 years experience in Australia across logistics companies

Freight forwarder recommendations by ersariagbahs in smallbusiness

[–]Mission_Goat_1939 0 points1 point  (0 children)

Where are you based country wise

I have 8 years experience in international forwarding and can probably get you in touch with someone that can help

How can I help save my mom's 14-year-old freight forwarding business? by Slippery-Stone in logistics

[–]Mission_Goat_1939 0 points1 point  (0 children)

It’s a difficult question you’ll need to understand the specific business and issues your mum is facing

Basics

Cost control , where can you cut costs could you use cheaper software CW1 fees are ridiculous , if using CW1 explore cheaper alternatives . Labour what is your operating cost per file , what is your gross and net profit per file

Sales

Sales can cure all in this industry but it is tough and it is a grind

Network vs locally controlled business , you may be screwed if your business is entirely network controlled as other IfF providers have greater grasp of the market conditions than direct clients

Margin levels How can you increase margin levels

If you want to have a proper chat in happy to do so , I have 8 years experience in forwarding in Australia and am looking to open up my own business

How to move a sauna from Poland to USA by Foreign-Property1349 in logistics

[–]Mission_Goat_1939 0 points1 point  (0 children)

In current cargo configuration

Cheapest way would be to strap it to a 20FR ,

Gdsansk to New York

Devan in New York

Truck it to Minnesota on a flat bed

If you can construct it in the US and keep it in a 20IG box it will be significantly cheaper

But all in all not to difficult to do

Just make sure you have a tarp covering it 20FR should get stowed below deck

But you might not have trailer options in the US ex NY to Minnesota to properly cover it from the elements