Transuniverse Forwarding profiles itself as a unique groupage specialist. In December’s Flowsmagazine, an account of that family business, which has caught the eye in recent years with a series of acquisitions. And even more companies look back on the past year in that Flowsmagazine.
The company history of Transuniverse Forwarding, started in 1983 and based in Wondelgem near Ghent, has an atypical character. While many companies start around the church tower, the Adins family’s company began with connections to Iraq and Iran. “Later, we also started offering markets like Greece, Turkey and Italy,” says founder Frank Adins.
Remote destinations
Whereas in the past Transuniverse Forwarding operated exclusively as a niche player in groupage, today it can come out as an all-rounder, but far-away destinations remain part of the company’s DNA. In 2006, second-generation Olivia Adins also appeared on the scene. She started at the bottom of the corporate ladder, but has since been part of the seven-member executive committee for some time. “We deliberately don’t have a CEO, because we take decisions together in our executive committee. Different areas of expertise are represented in the executive committee: from IT and sales to legal affairs. Today, you can’t do it any other way either in a complex world,” says Olivia, who herself specialises in customs clearance.
Takeovers
Transuniverse Forwarding has grown steadily over the past forty years and in recent years put a strong focus on a ‘buy & build’ strategy with a series of thoughtful acquisitions. “Scale is decisive in our sector,” Frank explains. “For instance, our market leadership for groupage on Turkey, Greece and Portugal allows us to refine our services from – so to speak – an envelope to larger partial shipments. In other destinations, such as Ireland, we did not have those volumes. By acquiring Irish specialist GC Trans (in 2018, ed.), we now have that scale. So you create more clout and a pull effect for potential customers.”
Multimodality
Three years ago, Transuniverse Forwarding unfolded concrete plans to develop a 40-hectare multimodal site at the Kluizendok in the port of Ghent together with its Turkish partner Ekol Logistics. The corona crisis decided otherwise. “We did not want to and could not pull such a project alone, so we took a different course by making strategic acquisitions,” Frank explains. “When we acquire a company, it has to fit our niche and expertise. That way, you bring in additional know-how and a piece of a market segment, which is ultimately our preference over investing in large-scale real estate projects. By nature, we are also not an asset-based company.”
That is by no means to say that Transuniverse Forwarding is not committed to a multimodal strategy. “It is and remains a hot topic today. Moreover, we already work multimodally today. We have our own containers and shipments to Turkey, for example, which are picked up by truck, taken to the port by train and then shipped there. We keep our eyes open to develop opportunities. The DNA of a Ghent freight forwarder is different from that of its Antwerp counterpart anyway,” says Olivia.
Antwerp
“If you really want to be a maritime player, you have to operate in Antwerp. We did take that step once in the past, but due to circumstances we stopped doing so. If we want to grow in maritime again, it will have to be done through an acquisition in Antwerp to bring in the necessary expertise. We are not ruling out that step,” adds Frank.
We will also continue to look for opportunities in the coming years
Due to the sputtering global economy, they are cautious about the future at Transuniverse Forwarding. “We come from an era when, in our sector, you were lucky if you could negotiate a percentage mark-up from your customers. Today, we have no choice but to adjust our prices to reflect both transport-related and non-activity-related rising costs. These include a 10-12% wage indexation ahead. Added to that is an estimated increase of 200,000 to 300,000 euros in our heating costs. That’s a serious chunk of our budget,” Frank explains.
20% less
To deal with possible shocks, Transuniverse Forwarding is not replacing certain staff members, who are retiring, for example. “Since October, we feel that certain things are starting to sputter. From some locations, for imports, we are already seeing a 20% drop in shipments. Certain customers have temporarily shut down production due to skyrocketing energy bills. This is also revenue that we will not see soon.”
Policy drops stitches
Policymakers are dropping stitches, Frank believes: “In Belgium, automatic wage indexation is used, but surrounding countries do not. This will undoubtedly lead to certain business leaving our country soon.” Despite the gloomy outlook for the economy, there also remains room for optimism. “The corona crisis has shown that our sector plays a crucial role in the economic fabric in one form or another. We will continue to look for opportunities in the coming years as well. Moreover, we believe in our own ability,” Frank concludes.
Yannick De Spiegeleir
