BROKERS COMING TO TERMS WITH THE INTERNET IN THEIR BUSINESS

BROKERS COMING TO TERMS WITH THE INTERNET IN THEIR BUSINESS    At the Western Cargo Conference in Palm Springs, Calif. this past weekend, the question on most customs brokers’ minds was how they will fit into the rapidly emerging world of Internet-based trade services.
   “You have one-third that are on board, one-third who don’t know enough about it, and another third who are scared to death of it,” said Jerry Murphy, director of refrigerated cargo services of AEI/Danzas in Seattle.
   E-commerce executives at WESCCON told brokers that they still have a big role to play in Internet-driven trade. “Don’t take it as an intrusion (into broker business). Use it to get inside your customer’s business,” said Beth Peterson, vice president of product development for Capstan Systems.
   But they also fired a strong warning at those brokers that choose to ignore the growth of the Internet in business. “Five years from now it will be obvious that some will not be in business, especially the ones who don’t embrace technology,” said Rob Quartel, chief executive officer of FreightDesk.
   Many Internet firms have not always made the brokers believe that they will have a place in future Internet-based commerce. “Developers of Web technology looks at intermediaries as friction that doesn’t need to be there,” Quartel said. His company has developed operational Internet system that supports small freight forwarder and broker processes.
   “One of the biggest impediments is that it’s new technology,” Peterson said. “It takes some vision and willingness to trust the Web.”
   Most brokers know the Internet is a tool that will have to be integrated into their operations during the next year.
   “Those who feel it’s going to put them out of business should take another look at it,” Murphy said. “Technology will get you through.”