The freight forwarding formula has not changed much over several decades - until September 11, 2001. This single event changed how the industry does almost everything, especially in the area of transportation. This year we are really feeling the effects of these new "formulas".

2008 has been unpredictable and almost impossible to gauge with regard to regular shipping patterns. The ups and downs of the economy is having a significant impact on this. There has been a severe decline in manufacturing which has an effect on the domestic shipping patterns as well.

The combination of these two things has caused a ripple effect within the freight forwarding community. A drastic example of this is DHL. Their decision to stop serving the U.S. markets caused UPS to raise rates to compensate for additional volumes as well as take advantage of the shift in the competitive field. There have been other freight forwarders that have not been able to weather the storm - and the potential for things getting worse before they gets better looms on the horizon.

So, what can we do? Shipping product around the world is still a very real demand and, although challenging at times, will not cease. Thinking outside the box is a good beginning. Changing traditional shipping methods can be a real benefit to a company. Depending on your shipping requirements, a less expensive way of getting product from here to there is through consolidating smaller shipments going to one geographic region. Granted, it may not always be feasible, but when this is possible it saves money and still gets your freight to its destination on time and damage free. Your shipments are not handled as much and are more secure because they are in containers or palletized in the midst of other shipments. By working together, either within your industry or with other like-minded shippers that have similar package configurations or shipment destinations or with forwarders or 3PL's to consolidate with other freight to command more consistent movement and better pricing makes for a viable solution in these unstable economic times.

Another "out of the box" approach is to become active, support and network with associations that are debating the cargo security issue in Washington DC every day. Some example of these associations are Airforwarders Association (AfA), International Air Transport Association (IATA), Parcel Shippers Association and Express Carriers. We should also support our local air cargo and trucking association's chapters.

We will get thru these uncertain times by working together, being creative in our approach to shipping and refining our strategies. It is time to embrace the changes taking place around us and find new growth strategies to be more successful even in these challenging days.