Beating the recession

How a UK freight forwarder is reaping the rewards from the global recession.

After a recent discussion with Mark Reid, a director of Cargo Overseas Limited it was interesting to hear his thoughts and views on the freight industry and how they handled the global recession.

The latest figures were released in the aircargo news in August and again showed a mix bag for freight forwarders throughout 2009 with the freight spend of a large number of forwarders in decline. Not so one plucky freight company who has continued to defy the industry norms and has shown growth year on year since 2001. Cargo Overseas Limited, head-quartered in Manchester moved 36 places up the UK top 200 IATA forwarders with an increase in spend in 2009 over their already mpressive 2008 figures by over £20,000.

They put this down to their resillient business model which allowed them, in the height of the recession in 2009, to open their first overseas office. Cargo Overseas Lanka (PVT) Ltd has gone on to become a major player in the Sri Lankan export market with special emphasis on the Sri-Lanka to UK LCL Groupage trade. Their spend didn't stop there, whilst UK forwarders were laying off staff Caro Overseas were amassing the cream of those being let go, from sales people to specialist operations staff Cargo Overseas continued to increase their workforce, which brought in new business and allowed them to ride the recession like the crest of a wave.

They freely admit they experienced some problems, companies went into administration owing them money, but the business model they operate under meant that no one customer could cause them to go under. Prudent cash flow analysis and credit control systems allowed them to make the most of their profits and invest in businesses.

In 2010 Cargo Overseas continued this investment, taking on more staff, purchasing from administration a specialist groupage and project forwarder to increase there mediteranean presence and investing heavily in a new US business. These latest developments have seen their business continue to diversify into new markets whilst retaining their core airfreight consolidation and FCL business. Cargo Overseas claim to continue to operate prudently and believe their books show the success with which they approached a global recession which hit the global forwarding business hard. This third quarter of 2010 has seen them carry more airfreight than any other quarter in three years and their LCL groupage business has seen phenomenal growth.

Recession's are a difficult time for all, you have to make the most of any market, however challenging it may become and for this plucky forwarder, it appears they rode through the recession with prudent ease.