The twists and turns in the Trump administration’s trade policy and the saga of tariffs on and tariffs off, has created a climate of uncertainty in the global economy throughout 2025, exacerbating what was already a period of low growth, and in some cases, one of stagnation.
For freight forwarders this has translated into weakening demand for ocean and air freight and a decline in rates, putting significant pressures on margins.
Dan March is CEO of WCAworld, the world’s largest and growing network of independent freight forwarders with almost 13,000 member offices in close to 200 countries.
He joined WCAworld in 2010 and became CEO in 2015. London-based, he spends more than half the year travelling the globe visiting members.
In a Q&A with AJOT, March explained the workings of WCAworld and how its SME operators are more than holding their own when it comes to competition with their multi-national rivals.
AJOT: So, firstly, in a nutshell, how does WCAworld function and help its members?
MARCH: The key plank in WCAworld’s growth and success has been our auditing process and the financial protection it offers members. We undertake a very thorough audit of each applicant company to check their financial health, their history, their service levels.
Once they’re accepted into the group, they can work with any other member on a profit share basis. For example, one forwarder may be an export agent who needs an import agent in the country where the shipment is headed and someone to do the customer’s clearance and last-mile delivery to the customer. Revenue is shared according to whatever that they’ve agreed.
So, you can work with any member without worrying about their creditworthiness. This takes the sting out of such questions as: ‘Are they going to pay?’ and ‘Are they going to pay on time?
You can select a fellow member in Africa, in Algeria, or Nigeria. or in Belize, indeed anywhere in the world. And although you don’t know them, you have the guarantee that they have been audited by WCAworld. Also, if the situation arises that a member does not get paid on a shipment, there is provision for WCAworld to pay.
AJOT: That a number of major forwarders are currently in cost-cutting and restructuring mode has led to assumptions that the economic downturn must being felt more keenly by SME players. How do you respond to such reasoning?
MARCH: I certainly do not agree that SMEs are in a worse position than their bigger competitors. Like in COVID times and this year with the tariff chaos, our members have demonstrated that they are highly-adaptable to whatever situation comes along be it in terms of pivoting towards new market opportunities or changes in the nature of the business such as digitalization.
On the horizon is further, major upheaval in IT with the adoption of AI technologies. But again, SMEs’ nimbleness and ability to spot trends and readily adopt beneficial solutions means this challenge can be met. I would argue that ‘disruption’ of this kind is more of an issue for the multinational players whose sheer size often makes quick decision-making and the adoption of something new very difficult.
AJOT: In the European road haulage sector, there are reports of a wave of bankruptcies, especially among independent, small-scale operators. Can parallels be drawn with SME forwarders?
MARCH: No. Road haulage is struggling in other parts of the world too, including the US. The sector has been beset with difficulties for some time now, and it is not getting any better. However, SME forwarders do not share the same business models as trucking companies and the market dynamics are different. They have far greater scope to re-focus and in many cases to thrive.
The number of bankruptcies among WCAworld’s members remains very low thanks to the financial protection we offer, and the extra revenue created by being part of a network.
This year has been particularly challenging but the extent of the impact of Trump’s tariffs and the slowdowns in global trade has been determined, to a degree, by factors such as customer concentration, type of products and country focus. Not all products and countries are affected in the same way. Of course, it would be better for all if the uncertainty we’ve had to cope with this was resolved.
AJOT: For some time now, various sources have predicted a wave of M&A in the highly-fragmented forwarding sector, with the bigger players eating up the smaller ones or the latter simply going out of business. Is this how consolidation is playing out?
MARCH: Not at all. Over the past 20 years, we have defied predictions of the demise of small forwarders, predictions which completely ignore the added value offering they bring to the market.
For example, WCAworld members have built up strong local teams and are true experts in their location with long-standing and mutually-beneficial relationships with their customers and partners. They can quickly switch partner agents they work with if the service level or pricing are not attractive. Compare this with multimodal forwarders who struggle to provide personalized solutions and services to shippers.
AJOT: If you look back on your tenure at the helm of WCAworld over the past decade what highlights stand out?
MARCH: I think we’ve refined a network that allows SME forwarders to compete with their multi-national counterparts who generate much bigger volumes of freight and have considerable influence with carriers. We’ve proved the doubters wrong and shown it is possible for small forwarders to not only survive in the global economy but flourish. I’ve always been one for the underdog and being able to provide some assistance to SMEs to fight the big guys is something that I love.
I would also highlight the financial protection offered by the payment platform we’ve developed which allows members to make payments to each other and save thousands and thousands of dollars in transactional fees to banks.
Developing specialty networks within WCAworld – eight in total – including pharmaceuticals, perishables, time-critical and most recently, live events, has also been a big area of growth for us.
Finally, I take a lot of satisfaction in WCAworld staging conferences around the world, such as in Dubai, where we assembled almost 5,000 forwarders under one roof to conduct business together.
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