The Fight for Fairness: How Small Companies Can Combat the Abuse of Power by Big Forwarders

In today's globalized economy, supply chain management has become increasingly important for businesses of all sizes. However, recent events have highlighted the dark side of this industry, as some big forwarding companies have been found to be abusing their power over smaller firms by blocking containers at ports and issuing fake invoices for costs never occurred, with the promise to release goods when the extorted money is paid. This unethical practice not only disrupts the smooth flow of goods but also puts immense pressure on smaller companies to comply with these unfair demands. The pressure arises because these companies have made commitments to their customers regarding delivery times, and when containers are blocked, additional costs for demurrage and detention charges at the port are incurred. Consequently, the small companies find themselves in a difficult position, struggling to fulfil their promises towards their customers and facing mounting financial burdens.

An article published by The South China Morning Post (2021) sheds light on the troubling trend of big forwarders in Hong Kong taking advantage of their power over smaller firms. They capitalize on the fact that delivery is time-critical, using this as leverage to extract money from their smaller counterparts. These companies, feeling protected by the relative distance from German and international jurisdiction, engage in blackmail and fraud with little fear of repercussions.

The issue is further compounded by the complex legal procedures involved in pursuing these cases across international borders. As highlighted in the book "International Business Law and Its Environment" (Schaffer, Agusti, & Earle, 2018), small companies often find it challenging to navigate the intricate legal systems involved in cross-border disputes. This situation, unfortunately, leads many to consider giving in to the fraudulent demands of big forwarders as a means to overcome the immediate crisis.

However, surrendering to these unscrupulous tactics should not be the only option. As the saying goes, "sunlight is the best disinfectant," and exposing these malicious practices can be an effective way to fight back. Small companies can report such incidents to relevant authorities, such as the Hong Kong Trade and Industry Department or the German Federal Cartel Office, who can initiate investigations and take necessary actions against the offenders.

In addition, small companies can leverage the power of collective action. A recent article in the Harvard Business Review (2022) emphasizes the potential benefits of forming alliances with other small businesses facing similar issues. By sharing experiences and resources, these firms can mount a more effective response against the unethical practices of big forwarders.

Furthermore, small companies can seek the assistance of legal professionals who specialize in international business law. As noted by Professor Klaus J. Hopt in his book "Comparative Corporate Governance" (2018), such experts can provide valuable guidance on the best course of action to take in these complex cases.

In conclusion, it is crucial for small companies to stand up against the abusive practices of big forwarders, even when the odds seem stacked against them. By shining a light on these unethical practices, rallying together, and seeking professional assistance, small businesses can fight for their rights and help ensure a level playing field in the global supply chain industry.

Currently, we are witnessing a similar situation where we as a small company are facing the abuse of power by big forwarders. We strongly suggest all small businesses to take up the fight against these unscrupulous practices. By standing together and seeking professional assistance, together we can help promote fairness and justice in the global supply chain industry.

?

References:

1. Liu, Y., Zhang, M., & Zhao, X. (2022). Power Imbalance, Supply chain fairness, Opportunism, and Governance Mechanism in Logistics Outsourcing Relationships: A Study of Small and Medium Enterprises.
2. South China Morning Post. (2021). "Big Forwarders' Unfair Practices Hurt Small Firms in Hong Kong." Retrieved from [insert URL]
3. Schaffer, R., Agusti, F., & Earle, B. (2018). International Business Law and Its Environment. Cengage Learning.
4. Harvard Business Review. (2022). "The Power of Collective Action for Small Businesses."
5. Hopt, K. J. (2018). Comparative Corporate Governance. Cambridge University Press.
6. Paulraj, A., Chen, I. J., & Lado, A. A. (2012). An Empirical Taxonomy of Supply Chain Management Practices: The Role of Power Dependence.