International freight forwarders are now trying to diversify business such as establishing a strategic alliance with shipping company, out sourcing and expansion into new business area in order them to adapt quickly to sudden changes in the logistic environment.
And foreign international freight forwarders which have a form of multi-national corporation, is becoming more internationalize and expanding over national border. But in case of domestic international freight forwarder, size of company is very small and their business area is focusing to create profit with mainly exporting containers.
Therefore we here conducted introduction of project cargo market, some real example of transportation in order to show them the way to survive as developing different markets.
According to the study of project cargo transportation, stable income is protected because long period transportation is most likely to occur during project than any other transportation. We cannot find exact ratio of business profits however Dockwise which is world leading heavy project forwarder and domestic company are making a big profit in the level of 10 ~ 20% from selling and it is far higher than average rate 5.9% in present market.
Every fright forwarder is requested a preliminary quotation from client prior to begin a project and they can expect how many equipments will be mobilized for conducting a project thus there is few or no variable.
As entering into project cargo market, we analized that there is an urgent need for an institutional framework and continuous investment of operation, crew manning, foundation network and engineering ability. And also it will be needed precheck and information of relevant laws over the world, business practices and local logistic situation. Basically in project cargo market, require a large initial investment since complete preparation must be made from the beginning stage so small company cannot play a role easily.
Thus the biggest problem is lack of specialized knowledge so that international project forwarders can enter into project cargo market, they have to consider to establish a strategic alliance with specialized company or M&A if can figure out in the long term perspective.
This can solve the problem of lacking the capability for installation and transportation cargo and insufficiency of network over the world. In order to strengthen strategy of business, we can approach to client as business mind if we can analize the various heavy cargo in advance