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   Vol. 19 No. 28
Monday April 6, 2020
In Virus Crisis Forwarders Get No Respect
Afa Gets No Respect
Brandon FriedIn the U.S. FlyingTypers learned that several small freight forwarding companies have gone out of business since the COVID-19 Pandemic has shut down the nation and many more are teetering on the edge of insolvency.
     “The coronavirus scourge has so far adversely impacted countless companies and millions of American workers,” declared Brandon Fried, President of the U.S. Washington-based Airforwarders Association.

Enough Pain All Around

     “Our nation's airlines are suffering from decreased passenger demand brought about by global travel bans and isolation orders, so they need as much support as possible to remain viable,” Mr Fried said.

Widespread Forwarder Layoffs

     Referring to the $25 billion U.S. Government bailout for major USA flag airlines, Mr. Fried said:
     “The U.S. Government financial aid program includes eligible support businesses such as maintenance and overhaul; and ticket agents will be sharing the money as well.
     “Cargo carriers will be receiving $4 billion.”

No Specific Provisions

     When asked, what about the hundreds of small-to-medium freight forwarder companies, the backbone of the air cargo industry, that get no government aid, Mr. Fried replied:
     “Aside from the broad-based Paycheck Protection Program and the Economic Injury Disaster Loan Program, there are no specific provisions in the financial relief package for the freight forwarding and affiliated express trucking community,” Mr. Fried said.

Pandemic Slashes Forwarder Revenue

     “The Airforwarders Association believes that while our airlines need support, so does the freight forwarding industry and its affiliates that depend on these carriers for their livelihoods as well.
     In a recent AfA member survey, 50% said that their revenues had dropped in excess of half and 65% said that employee layoffs were either imminent or underway.

Show Me The Money

     “Forwarders need the money,” Brandon declared, and we are going to help them obtain this crucial assistance.
     “Since the most recent small business relief package is only about $360 billion compared to the $14 trillion annual U.S. payroll, the allocated amount is likely to be consumed quickly.

Will Phase Five Deliver Relief?

     “We expect that Congress will hopefully pass a new phase five legislative initiative, so we are approaching Congressional representatives and Senate offices in expectation of this increased aid.
     Freight forwarders are an essential component of the supply chain, handling complex logistical challenges that assure the efficient and timely delivery of crucial medical supplies, pharmaceuticals, and perishable foods.”
     A top forwarder added, “but what also must be faced in this situation, is the reality that everyday people and government lawmakers, by and large, have little to no idea what a freight forwarder does.
     “It’s past time that the public be aware that without forwarders and brokers by the thousands all over the world who are mostly small-to-medium companies, the air cargo industry will grind to a halt.
     “Many of these companies are right on the edge without the deep pockets to sustain themselves during this total shut down.
     “Others are just gone and will never come back.”

Enough Pain All Around

     A realist, but still positive, Brandon Fried looks at the current landscape and notes:
     “Regrettably, those that focus on tradeshows, automotive, entertainment, and other industries shuttered by this unfortunate situation are suffering.
     “This situation is undoubtedly a challenging time, but there is a brighter future ahead,” Brandon concluded.

Forwarders Get No Respect

     The situation is no laughing matter, but when Brandon mentions “no specific help to freight forwarders,” but “a brighter future ahead,” a few minutes later, we think of Rodney Dangerfield and a speech we delivered in Dublin, Ireland in 2016 as Keynote at The FIATA World Congress.
     In 2020, it is way past time that our great freight forwarders get some respect.

Rodney Dangerfield
If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Access specific articles by clicking on article title
FT032420Vol. 19 No. 25
Sign Of The Times
Logistics Delivers Hope
Hell Or High Water Cargo Flies
Chuckles for Marc 24, 2020
EMO Trans Open For Business Worldwide

Vol. 19. No. 26
PayCargo Freedom In Pandemic
Past Pandemic Air Cargo Could Power The Economy
Air Cargo Delivers The World
Chuckles for March 27, 2020

Vol. 19 No. 27
China Back To Work . . . Sort Of
United Cargo A Dream Of Eagles
Cruise From Hell To Mercy Sailing
Chuckles for April 1, 2020

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