Cargo owners and shippers who are squeezing transporters and forwarding companies to provide warehousing as a free or low-cost additional service may be losing more than they are saving.
A number of transporters and forwarders FTW has spoken to in the region have said that they have had to offer subsidised warehousing for transit cargo simply to retain market share at times when there is a surplus of available vehicles.
Because the warehouses do not generate revenue there is little incentive for the companies to invest in the systems and equipment that would help cargo owners to manage their inventory better, and to diversify into new markets.
