The recent collapse of Lion Global Forwarding has made headlines, largely due to the chaos surrounding their containers stuck at the wharf. This disruption is expected to significantly impact their revenue projections, and the ripple effects are still being felt across the industry. As I read through the unfolding events, I couldn’t help but reflect on what it truly means to be a freight forwarder—not just in Australia, but globally. For years, I’ve been saying the same thing: our industry needs to wise up, train up, recruit up, tech up, and generally skill up. The recent collapse of such a major player in the logistics sector brings this urgent call to action into sharper focus.
The freight forwarding industry has become increasingly driven by rate-based competition, with companies often caught in a race to the bottom. It’s a cycle that’s unsustainable, and the Lion Global Forwarding situation serves as a stark reminder of that reality.
The Real Role of Freight Forwarders: More Than Just Rate Providers
Let me be clear, especially to customers: we are a service industry, not a rate factory. Freight forwarders are not here to simply provide the cheapest rates or act as a bank to extend your credit. We operate on slim margins, and far too often, businesses are lured into taking on freight forwarding contracts without considering the long-term strategic implications. When a forwarder chases after that $200 price advantage and offers 90 days of credit, they’re playing with fire. That model might work in the short term, but sooner or later, the risks catch up. The gravy train was always going to come to an end.
As customers, you must do your due diligence and take a longer view of your supply chain strategy. Focus on building mutually respectful, long-term relationships with your forwarders. You’ll save more by investing in forward planning and supply chain efficiencies than by chasing short-term, cutthroat price cuts.
Don’t overlook the value that technology-enabled automation can bring. Tech solutions can save time and reduce headcount, which translates to operational efficiency. If you think about it, would you respect something that costs you nothing and comes to you easily? No, you wouldn’t—so why risk your business by relying on a system that operates on such unsustainable foundations?
Short-term thinking creates more work and exposes your business to unnecessary risks. It’s time to shift focus from immediate, transactional gains to long-term, strategic success.
A Message to Fellow Forwarders: Stop Selling Your Soul
To my fellow freight forwarders, let me give it to you straight: stop being used and stop being a commodity. If you are winning business solely based on pricing, with nothing else to offer, you are not going to last long. Price-driven relationships are transactional and fleeting. If your business model starts with price, it will always end with price.
Instead, ask yourself: What is your value proposition? How are you differentiating yourself from the competition? How are you helping your customers perform better in the marketplace? If your only offering is rates, trust me, someone else will always be able to do it cheaper—and if no one can beat your price, you’ll go under because no one can survive on price alone.
In Australia, where labour costs are high and skilled talent is scarce, you can’t afford to survive by simply “dropping your pants” on rates. The competitive pressure is already immense. If you want to thrive in this industry, you need to rethink your service offering and your value proposition.
Don’t just copy the big players. If your business looks, acts, and sounds exactly like the larger multinational forwarders, you’ll always come second. Why would anyone choose you over the big players? You’re simply smaller, less secure, and less well-resourced. Instead of copying, focus on your “Points of Difference”—what makes your business stand out in terms of culture, service, and values.
Focus on why you do what you do, and the how will follow. By being better in every way—through superior service, stronger relationships, and unique value propositions—you can carve out your niche and build a sustainable, profitable business.
Moving Forward: Shaping the Future of Freight Forwarding
The Lion Global Forwarding collapse highlights the risks of relying too heavily on price-based competition and short-term thinking. It’s a wake-up call for the entire freight forwarding industry to rethink how we do business. For both customers and forwarders, the time has come to move away from a transactional, price-driven mindset and toward a more strategic, relationship-based approach.
For forwarders, this means investing in technology, training, and staffing—all the things that will help you stand out in a crowded market. We need to be more than just rate providers; we need to become trusted partners who bring value through efficiency, expertise, and customer-centric service. Only by evolving and adapting to these new demands will we survive—and thrive—in the future.
The future of freight forwarding is in the hands of those who are willing to invest in the long-term health of their businesses and the broader supply chain. If you’re ready to embrace this mindset, you just might find that the industry has a much brighter future ahead. Shape up, or risk being left behind.
— La Chang
