Being an SME forwarder in today’s air cargo market is not for the faint of heart. You’re often up against global giants with deep pockets, airlines playing hard to get with capacity, and a digital revolution that’s flipping traditional logistics on its head.
At OpenNAP’s “Navigating Market Challenges for SME Forwarders & Consolidators” panel, I had the chance to break it all down – what’s happening in the market, where SME forwarders are feeling the squeeze, and, more importantly, how they can adapt and find new opportunities to stay ahead.
Let’s talk strategy.
Market Volatility is Here to Stay. The Best Forwarders Are Already Adjusting.
Rates are swinging. Capacity is tight. Airlines are being selective. This isn’t a passing phase – it’s the new normal. And if SME forwarders don’t have a game plan, they’re going to be stuck fighting over scraps.
What the smartest SMEs are doing right now:
- Partnering with master co-loaders and neutral consolidators to get bulk rates and guaranteed space instead of scrambling last-minute.
- Diversifying their airline relationships so they’re not stuck in a bind when one carrier decides to pull the plug on allocations.
- Booking digitally whenever possible because manual spot quotes take 91 hours on average, while eBookings happen in minutes.
SME forwarders don’t have the luxury of waiting. The ones that are getting ahead are the ones who are treating capacity like a strategic asset, not an afterthought.
Tech Isn’t Just for the Big Players – It’s the Great Equalizer
Let’s talk digitalization in logistics. If you think tech is just a fancy tool for global forwarders with massive IT budgets, think again. It’s leveling the playing field – but only for those who actually use it.
Here’s where forwarders are winning with tech:
- One API > 50 integrations. Custom airline integrations can cost upwards of €243,000 per airline, plus another €450,000 a year just to keep them running. Forwarders using a single plug-and-play API get access to 70+ airlines instantly – with zero maintenance nightmares.
- Automation = more revenue. Why waste time manually chasing rates when systems can do it in real time? The fastest forwarders aren’t the ones clicking around the most; they’re the ones who’ve set up workflows that do the heavy lifting.
- Data-driven pricing is the new standard. If you’re still relying on outdated rate sheets while competitors are using real-time market trends, you’re already behind.
Forwarders using platform integrations book 20x faster and free up an extra hour per team member per day. That’s time better spent winning clients instead of playing email tag with carriers, thanks to some stragetic digitalization in logistics.
See the strategies top SME forwarders are using to navigate today’s volatile market in the Hybrid Rate Reality report
Regulations: You Can’t Ignore Them, So Get Ahead of Them
Here’s a harsh truth: regulations aren’t slowing down anytime soon. Whether it’s ICS2 in the EU, IATA’s financial guarantee requirements, or tightening sustainability mandates, forwarders who wait until the last minute to adapt are going to pay for it – literally.
What top forwarders are doing to stay compliant (without the headache):
- Joining industry networks like NAP to get compliance updates before they become problems.
- Automating customs and security compliance instead of manually verifying every shipment.
- Investing in sustainability tracking because shippers are already prioritizing green-certified partners.
Regulatory fines are bleeding millions from unprepared forwarders every year. The ones treating compliance as an afterthought are handing money straight to the regulators.
Compete or Collaborate? The Best Forwarders Do Both.
SME forwarders are often on the back foot, when going head-to-head with multinational logistics giants based on size alone. But they can outmaneuver them by being faster, smarter, and – crucially – more collaborative.
How SME forwarders are using partnerships to win:
- Consolidators = built-in bargaining power. SME forwarders teaming up with consolidators aren’t just surviving – they’re getting better rates than some multinationals.
- Aligning with airlines’ strategies instead of fighting for leftover space. Airlines want more diversity in their forwarder base post-mergers, and SMEs who play this right can lock in long-term relationships.
- Leveraging data to offer smarter solutions. The forwarders who can show real-time rate insights, rate volatility, and CO2 tracking aren’t just getting noticed – they’re winning the high-value contracts.
The B2C e-commerce boom is rewriting the air cargo rulebook. The SME forwarders who embrace instant quoting, automated tracking, and digital-first operations are the ones poised to lead.
Final Takeaway: The Forwarders Who Move First Will Win.
This industry is changing fast. SME forwarders who embrace digital tools, automate aggressively, and leverage partnerships will thrive. Those who cling to outdated workflows will fall behind.
Here’s what every SME forwarder should be doing right now:
- Ditch manual processes and let automation handle the time-wasters.
- Integrate smarter, not harder – use a single platform API instead of building 50 separate integrations.
- Leverage market intelligence to outmaneuver the competition.
- Treat compliance like a competitive advantage instead of a last-minute headache.
The biggest shift in freight forwarding isn’t coming – it’s already here. The only question left is: are you ready to keep up?
