Vice President at Global Value Network
International household goods moving has many of the same challenges any commercial cargo forwarder has nowadays. We're all trying to get a handle on where things are headed. One of the unique benefits of running two worldwide forwarder networks for almost twenty years is our access to a truly global perspective. With over 200 member companies in over 70 countries and the various communications tools our network offers, from mobile apps to bulletin boards and broadcast email systems, we get plenty of input on Global Transport trends. I'd like to summarize what we're seeing from our Globalink and Global Value Network members, at the moment for you.
As for current trends in Ocean Freight, expect the current conditions to continue to at least the end of June, if not the whole summer. Most lines out of China are already fully booked for June. Demand is very strong and capacity is tight in all origins with rates at peak-season highs. Overall demand from Asia to the U.S. is up 44% and from Asia to Europe up 24%. Capacity is stable but far short of what's needed.
Air Freight is just as tight. While a number of China Airlines crews have tested positive for COVID, there have been no freighter cancellations so far. Air Rates from the Far East have increased a further 15 to 35% due to severe capacity shortages. Demand out of Europe is growing especially to the Americas and Asia. Airlines will struggle to match capacity with highly uncertain passenger demand. Belly service is not yet at full capacity, especially out of the USA, making space tight and backlogged.
Much of this information comes from our member SUPPLY CHAIN SOLUTIONS and their subsidiary, OCEAN INSIGHTS.
What this means for all of us is that for the time being traditional pricing mechanisms such as quoting a rate and fixing a price are more or less obsolete at this current time. What we are seeing in Ocean Freight, is that the competition to simply book space on ships to get the cargo moved is so intense that it's absolutely a first-come, first-serve basis, especially out of China. Several of our Chinese Members have told us that if a carrier says they have space, they take it, and deal with the price later. If not, space is given to someone else. It is the lines that are gouging not the forwarders.
What this means is that it's crucial that you educate your clients as to what is going on at the moment and for the short-term future. The steamship lines are demanding premium rates, and there is no negotiation, even for very large shippers.
Being part of a forwarders network like ours has allowed members to benefit through collaboration, as members have shared the space reserved with one another should a shopper cancel a particular booking. And, having close personal relationships with your trading partners at a time like this is worth its weight in gold in terms of accessing different options.
It's going to continue to be a challenging and expensive summer for all of us, and good luck out there. While we have a number of our members in the household goods niche, our networks are primarily focused on forwarders moving commercial cargoes. If you're moving commercial cargoes, let us know if we can be of service.
One thing is certain: change is everywhere, and especially so in the Household Goods Industry. We have seen companies in this space diversify in many different directions over recent years, with traditional companies moving into all kinds of new niches, including relocation, logistics, and commercial cargo services. For those that are engaged in commercial cargo forwarding, and logistics we are sitting today with Will Siemens, of THE GLOBAL VALUE NETWORK.
We started out with some simple concepts. First, we based our entire approach on a concept upon which everyone agrees: Good relationships build good business. Everything we do is built to leverage this truth. We insist on quality and commitment and we have built a family of forwarding and logistics companies from all over the world, who look to work with one another, inside the network. We limit membership to two members for most countries, as what we know is that relationships build far deeper and better in a smaller group of high-quality providers. We also offer our Platinum Plus Financial Protection program which provides protection against financial loss, making our network a safer environment for developing new partnerships but also first-time shipments with network members. As a result, our members much prefer to work inside the group as opposed to unknown agents outside the group. This differentiates network members from competitors in their local market, creating business opportunities.
We also bring a wide range of tools and programs that enhance communication and business development. Basically, we bring proven tools to eager trading partners, while consistently grow the network with new members. We also provide training and offer ourselves as much support as you need.
This is the best part because you don’t need to be a big commercial cargo forwarder, or a big operator to succeed while using these tools, and this is what makes this is perfect for many household goods operators looking to diversify. All someone needs to do to make this work is what we all do in sales every day: we build relationships. We have all the tools to make this very easy, and it works especially well for those who are proactive, who reach out to other members and get to know them, and who follow up. Our network makes this easy. We even have CRM functionality built into our directory that reminds you to follow up with your partners and stay consistent in your sales efforts. As new members come on board, it’s as easy as reaching out and welcoming them and getting to know them.
Sure, I’d be happy to share some insights as to our tools. The first is the most important tool and that is the aspect of the network itself. When partners come together and forge relationships, it’s incredible what comes forth. Partners help partners in all kinds of ways. We believe deeply in the necessity to regularly communicate as the best way to build relationships, so we offer several custom-built communication tools. Members can market themselves to the whole group, or any subset of the group, through our Broadcast Email System. We offer a Bulletin Board for longer-term postings. Our What’s App groups are very active, and it’s amazing how much business gets traded there, daily. Of course, our Mobile App, also contains all these tools, at your fingertips. And to help members keep on track of the importance of consistently building relationships, we have a CRM program tied right into our Directory, making it easy to track past conversations and set reminders for follow-up. And, unique to us is our commitment to quality, which we track with our quality feedback tool also built into our Directory. Modeled on eBay, members easily give positive feedback or identify areas for improvement, which post right into each member’s profile for everyone to see. The quality scores are displayed in the Directory. We offer sales planning and coaching input, through an automated email approach. Our Platinum Plus Payment protection tool reduces the risk for our members by providing financial protection against bankruptcy, insolvency, or fraud. And one of our most effective tools is the meetings we organize for the membership. We have topic-specific meetings, like those we have held on Digital Forwarding, Flexport, and new Federal Maritime policies, for example. We hold virtual meetings, where members schedule and meet over Zoom, and it looks like this year we are going to get back to our face-to-face annual meetings
Here is the short answer. For over 18 years, we have proven to companies large and small that we can help significantly grow their commercial forwarding business with more efficiency, with far less risk, and far more results than they could achieve trying to build this type of business by themselves in house.
Business is generated in a variety of ways. We have a continually active Whatsapp group where rate requests and business opportunities are exchanged daily. We sponsor Virtual and in-person Annual Meetings events for all our members worldwide, where members meet one-on-one with each other, discussing business and opportunities. Our Mobile App makes all our resources and communication available at your fingertips. Most importantly, as you begin to connect with companies around the network, you not only develop business opportunities but also lifelong friendships because of the quality of the people in our group. We love the family feeling of our group, and our members do too.
Membership pricing varies depending on your company’s branches, so we’d prefer to connect to any interested companies directly. We always appreciate the opportunity to speak on the phone or virtually meet with anyone interested to discuss this further.
If this is of interest, the best way is to contact me, at email@example.com. and I’d be happy to set up a call to answer your questions. You can also check out our website at www.glvnet.com.
And, Raul and TriGlobal, thanks for the opportunity to share a few insights with you about the Global Value Network.
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