This fireside chat recap is from Day 6 of FreightWaves’ Global Supply Chain Week. Day 6 focused on global maritime logistics.
FIRESIDE CHAT TOPIC: Transactions between players in the freight brokerage industry
DETAILS: Working capital can be a challenge for freight forwarders. Amna Shah uses her expertise in freight financing and financial analytics to break down the ways to properly manage cash flow.
SPEAKER: Shah is the senior consultant at AHS Consulting.
BIO: Shah founded AHS Consulting in Chattanooga, Tennessee, eight years ago to be a bridge between freight forwarders and international clients.
KEY QUOTES FROM SHAH:
“Whenever we need to release freight, we have to provide a copy of a check. … That’s one of the things that has always really bothered me and that’s one of the things we’re trying to change about this industry. Now since COVID it has moved forward and gotten out of this archaic state.”
“You cannot recognize revenue until you have delivered the service. Now what happens in freight forwarding is you are being the ultimate bank for your customer because you have outlaid so much freight for them and what comes in at that time is the matching principal for your revenue.”
“I’ve hooked up with a few banks that actually understand forwarding companies and are willing to help these companies to get a better cash flow deal, either by factoring or just giving them a decent credit because they understand this industry and how it works.”
“Your asset in a freight forwarding company is your accounts receivable. So as long as you have a timely invoice of your customers, and that is where the challenging part comes in, you can’t really raise an invoice with an audit.”
NOVEMBER 7-9, 2023 • CHATTANOOGA, TN • IN-PERSON EVENT
The second annual F3: Future of Freight Festival will be held in Chattanooga, “The Scenic City,” this November. F3 combines innovation and entertainment — featuring live demos, industry experts discussing freight market trends for 2024, afternoon networking events, and Grammy Award-winning musicians performing in the evenings amidst the cool Appalachian fall weather.