Member Interview: Chad International, Oman
WFN members are well-connected and highly experienced in the industry. We regularly talk to our members to gain insight into the industry today. We recently heard from Ashwin Chad, Executive Manager at Chad International in Oman:
How did you start out in Freight Forwarding?
"I arrived in Muscat, Oman from Mumbai, India in 1976 to join a GCC based business group to start a Freight Forwarding Business Division in Oman, and worked for 30+ years. I then started CHAD INTL LLC in Oman in 2013. I joined the WFN group in 2017 to grow contacts with freight forwarding companies around the world and increase mutual business development opportunities."
Your thoughts on the logistics industry today and how things have changed due to Pandemic?
"I believe the logistics industry is highly developing and an essential industry for the growth of all industries, and the economy of countries. Due to the Pandemic and lockdown on all activities, there is a total slow down on economic activity, resulting in inflation and an increase in the prices of major essential commodities. Now, due to the slow lifting of lockdown, we can see growth in business activities. Air Freight growth is not in place as airports are yet to start commercial operations, and normal flights operations will be taking more time to start. It is felt that there will be negative growth for the year 2020. Things like annual meetings in person are not cost effective or possible right now. Working from home and virtual meetings are the new normal, which must be pursued aggressively by networks like WFN. It would be premature to ascertain the fallout of the Pandemic at this point as the situation remains fluid. We will address the uncertainties arising out of the changed operating environment."
What are the main challenges facing independent forwarders?
"It is from big players like DHL GF, DB Schenkers, K&N, DSV/Panalpina etc. who are giving competition in price and provide higher credit facilities to customers, taking away most business. What is left for independent forwarders is small percentage of total business, which is won only because of their personal contact, winning the confidence of customers who are not ready to go with big names. Joining worldwide networking groups like WFN has to be looked at in terms of the risks and rewards of joining/registering for the group."
How relevant is networking in today’s forwarding industry?
"Networking is a must these days in today’s forwarding industry, as demand from customers comes for the 'total package' in forwarding from Door to Door, rather than to appoint various vendors to move freight. Only those forwarders who are able to supply competitive pricing and a complete service will survive in the industry, and it is not possible without efficient networking. The primary reason for the existence of groups like WFN is to develop a network for newer companies around the world, where contacts are not established beforehand. Overall business profitability by joining new networks is what counts."
How do you see the future for independent forwarders?
"Independent forwarders' business growth is possible only with efficient networking. When more forwarders join hands and increase purchase power like freight rates or other related services, then it will help to compete with market rates and win business. Small/independent forwarders should be supported by their networks to make sure they benefit mutually by joining new groups, or it defeats the purpose of joining. As it is, freight forwarding business is presently very competitive and the Pandemic has only added to the problems of companies, but still networks have to provide a minimum threshold of new business to newer members joining, to remain competitive in the market."
Visit www.chadintl.com to learn more.
If interested in joining WFN, please complete the Application Form.