Member Interview: Excellent Service Freighters, Kenya
WFN members are facing all sorts of challenges right now, having to adapt and diversify. We regularly invite our members to share their views on the industry - past, present, and future.
We recently interviewed Tushar Nairi, General Manager - East Africa at Excellent Service Freighters (part of 20Cube group) in Kenya:
How did you start out in Freight Forwarding?
"Our parent company 20Cube Logistics has a well established presence in 12 countries, providing end to end logistics solutions. As part of our corporate strategic objectives, we inculcated the same approach and penetrated the East Africa market and have since thrived in the region.
Well, our journey in East Africa started out in Uganda, after penetrating the market in 2011. Having done the market intelligence, we were certain of the viability and feasibility of the investment. We positioned ourselves strategically on a niche market with a bespoke business strategy, knowing well that the market was already competitive.
After a firm establishment in Uganda as our first EAF branch, we spread our wings to tap into the Kenya market, as the strongest economy in the East Africa region. There were immense opportunities to partake of, with the location of the port in Mombasa in a strong and vibrant economy. We set up our Kenya office in early 2015. The organisation has continuously observed incremental growth from our revenue turnovers to the increase in our human capital."
Your thoughts on the logistics industry today and how things have changed due to the Pandemic?
"Well, comparing the industry before and today, there are a lot of variations. While the demand for shipping has always been constant, the measure and service delivery has become dynamic and divergent.
For instance, a lot of e-commerce and digitalization have become a must to remain relevant in the industry. This is evidenced in the shipping documentation (e-documents), technology implemented at ports, and cargo tracking on both sea and land, which have become conduits for efficiency and effectiveness.
The Pandemic has impacted the industry in such a way that there has been huge supply chain disruptions. It has contributed to the delays at sea ports and airports, especially with cargo operations that require human skills, with shortages of manpower for both port operators and seafarers that are key drivers for logistics.
On the flip side, embracing of paperless trading and communication has improved service delivery and pushing for a 'go green' campaign."
What are the main challenges facing independent forwarders?
"The major challenges facing independent forwarders have been: working capital to expand their portfolio of investments; lack of accessibility to government bail-outs in situations of financial crunches; legal implications with damages for failure to deliver services to clients, and constant changes in country polices."
How relevant is networking in today’s forwarding industry?
"Networking is pivotal in today’s forwarding industry in that a company can’t best service its clients without the collaboration of reputable agents, found through reliable and trusted freight network bodies, who have a presence in the specific locations needed. In a network, clients can still be serviced, and credit terms can always be negotiated between agents in situations where a business’ liquidity is not strong enough to execute an operation."
How do you see the future for independent forwarders?
"The more collaboration amongst independent forwarders on grounds of transparency and accountability, the more they will thrive, even in situations of uncertainty. This can only become a reality on grounds of a good reputation, as a most valuable asset that should set precedence. As the saying goes, “A contract is only good as the integrity of the person behind it’."
www.20cube.com