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Shippers Shift Contracts to Forwarders Proving Resilience in Crisis

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The signal

Major international shippers are fundamentally reshaping forwarder procurement decisions based on crisis performance rather than rate alone. Executives from Veralto, Lockheed Martin, and GE Vernova revealed that providers demonstrating creative problem-solving during disruptions: like maintaining contracted rates during capacity crunches in China: earn significantly larger volume allocations in subsequent contract negotiations.

This represents a structural shift in how shippers evaluate logistics partners, with loyalty and relationship quality now influencing awards beyond traditional competitive tender processes. However, forwarders are simultaneously failing to deliver on customer-facing technology and operational visibility, creating a critical gap between executive promises and ground-level performance that shippers find increasingly frustrating.

Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion
strategic

What if your current forwarders lose contract renewals due to poor crisis performance?

Simulate the impact of losing 30-50% of volume allocated to primary forwarders based on their operational response during disruptions. Model the cascading effects on primary forwarder utilization, alternative carrier selection, rate negotiations, and service level recovery timelines as secondary forwarders absorb displaced volume.

Run this scenario
Simulation Suggestion
this month

What if you shift 40% of air cargo to ocean freight for predictability?

Simulate converting 40% of current airfreight volumes to ocean freight based on Veralto's strategy of trading speed for consistency. Model impacts on total landed cost, inventory carrying costs, working capital requirements, demand planning buffers, and ability to serve time-sensitive customers across different product categories and service levels.

Run this scenario
Simulation Suggestion
strategic

What if your forwarders lack capability to handle increased regulated defense cargo volume?

Simulate the constraint of having insufficient forwarders with defense cargo regulatory expertise as production ramps up. Model the bottleneck effect on your ability to increase defense shipment volumes, the cost premium required to access qualified providers, the lead time extension for complex shipments, and the risk of supply chain disruption if primary defense-capable forwarders become capacity-constrained.

Run this scenario

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