“If things go wrong, don’t go with them.”
— Roger Babson
For more than 25 years, I have worked alongside freight forwarders implementing operational and financial systems. This position offers a privileged view into how logistics leaders react when the market becomes uncertain.
When volumes are strong, almost every company looks well managed.
When margins compress, the differences become visible.
Some organizations demonstrate clarity, discipline and adaptability.
Most continue operating correctly but struggle to evolve.
A minority discover that past success was largely supported by favorable market conditions.
Economic slowdowns — combined with geopolitical instability, tariffs, rate volatility and rising technology costs — act as a natural selection mechanism.
In logistics, survival favors the agile, the disciplined and the technology-enabled.
To navigate these conditions, freight forwarders must act with intelligence, boldness and operational rigor.
TPR — Think. Plan. Realign.
“Know the enemy and know yourself; in a hundred battles you will never perish.”
— Sun Tzu
Do not panic.
Do not react blindly.
Forwarders must first regain visibility.
You need accurate numbers:
- Profitability per file
- Customer margin evolution
- Carrier cost trends
- Cash position and DSO
- Exposure to specific trade lanes
- Dependence on a small number of clients
Many companies still lack this visibility at the shipment level. In volatile markets, this becomes dangerous.
Step back from daily firefighting.
Engage your operations, finance and sales teams.
Understand causes, not symptoms.
Only then can you build a plan.
And the plan must start now.
It Is Not Business as Usual
“In spite of your fear, do what you have to do.”
— Chin-Ning Chu
Client behavior changes in downturns:
- More price pressure
- More comparison
- Lower loyalty
- Shorter decision cycles
- Demand for visibility and speed
At the same time, carriers adjust capacity, rates fluctuate faster, and regulations evolve.
Doing more of the same rarely works.
Forwarders must rethink:
- Service packaging
- Pricing models
- Customer communication
- Technology usage
- Internal workflows
Look outside logistics. Many innovations now shaping forwarding come from other industries: automation, AI assistance, self-service portals, usage-based pricing.
Leaders adopt early. Others follow later.
Sharpen Your Pencil (Margin Discipline)
“We never know the worth of water until the well is dry.”
— Thomas Fuller
Even healthy companies must act before pressure becomes visible.
Key focus areas for forwarders:
Credit risk
- Monitor aging closely
- Watch large accounts carefully
- Detect early signals of distress
- Increase client communication
Cost structure
- Question every recurring expense
- Renego vendor contracts
- Avoid unnecessary fixed costs
- Protect cash
Profitability visibility
Many forwarders still discover margin issues months later.
In today’s market, you need near-real-time margin insight.
Operational Excellence Is No Longer Optional
“When we are no longer able to change a situation, we are challenged to change ourselves.”
— Viktor Frankl
There is no better moment to revisit processes.
Not incremental improvements — fundamental review.
Ask:
- Why does this step exist?
- Can it be automated?
- Can data be captured once instead of multiple times?
- Can clients self-serve?
- Can AI assist documentation, rating, invoicing?
Technology is now a survival tool, not an IT project.
Most forwarders use only a fraction of their software capabilities.
Others rely on manual work that no longer scales.
Do not reinvent everything.
Adopt proven platforms.
Speed matters more than perfection.
Focus on Strengths
Reevaluate positioning:
- Which trade lanes are profitable?
- Which customer segments are resilient?
- Where do you create real value?
- Where are you commoditized?
Double down on strengths.
Reduce exposure to low-margin complexity.
Your clients often know your strengths better than you do. Ask them.
Outsource non-core activities where possible.
Concentrate internal energy on differentiation.
Explore New Opportunities
Slowdowns reshape markets.
New opportunities appear:
- Niche verticals
- Specialized cargo
- Regional distribution
- Value-added services
- Digital integrations
- Partnerships with tech-enabled forwarders
Alliances reduce risk and accelerate entry.
The fastest growth often comes from selling new services to existing clients.
Sell — Systematically
In downturns, client churn increases.
Sales cannot remain informal.
Forwarders need:
- Structured outreach
- Measurable pipeline
- Clear positioning
- Consistent messaging
- Digital presence that builds trust
Sales must become a process, not an individual effort.
Technology helps:
- CRM discipline
- Content marketing
- SEO visibility
- Targeted outreach
- Automation
And still, fundamentals matter:
Conversations. Relationships. Presence.
Technology Is a Strategic Lever
A new factor defines today’s slowdown: software economics.
Rising transaction-based pricing, fragmented tools and lack of integration are creating cost pressure.
Forwarders must rethink their technology strategy:
- Visibility before complexity
- Integration before tool multiplication
- Predictable cost structures
- Platforms that scale with growth
Technology decisions now directly affect profitability.
In the End
“We survive on adversity and perish in ease and comfort.”
— Titus Livius
Slowdowns force clarity.
They reveal weak assumptions, inefficient processes and fragile positioning.
But they also create transformation.
The forwarders who use this period to:
- Gain visibility
- Strengthen margins
- Modernize operations
- Clarify positioning
- Invest intelligently in technology
will emerge stronger, leaner and more valuable.
The market will rebound.
The question is simple:
Will you return to it unchanged —
or ahead?
