The Libyan logistics bubble and client captivity
It’s a cliché by now, but I’ll say it anyway: Libya is a rich country. With all it has to offer, particularly in terms of oil and gas, it is no surprise that companies in this sector will always find it attractive.
However, it’s not easy doing business in Libya; ask anyone who has ever worked there for any length of time. It can be challenging on many levels; companies have to endure what is sometimes a very frustrating and almost crippling financial environment. I marvel at the patience of companies in dealing with some public sector bodies, with payments delayed for months or even years, and I can only conclude that there is either something very addictive about doing business in Libya, or that the payoff is well worth the wait, or maybe both.
With so much going on, one would expect that service providers such as logistics companies would pay more attention to this not-so-hidden north African gem, but sadly this isn’t the case.
With the risk of sounding as if I’m bashing the competition, I have to say that most large forwarders and logistics service providers tend to be quite detached from the political and security situation in Libya. Even now, with a war raging, you see projects underway, but with the same old carriers still plying their trade – and they don’t care what happens afterwards so long as they’ve been paid!
Anyone recognize this scenario?
Cargo intended for Benghazi is instead sent with a shrug to Tripoli.
“Close enough”, I can imagine the person booking the shipment saying. Never mind the 1000+ kilometers separating the two cities, or that it has been sent to what is practically another country.
I have faced this sort of frustrating situation while providing local services for an important client in very challenging times, and it took some creative thinking – with a lot of stress – to overcome and make sure that the cargo was dispatched to its correct destination.
With a bit more communication it could all have been so much easier in the first place, if someone had only flagged up the problems and asked for help.
But the company that booked that particular shipment – a real giant in the industry – was quite dismissive and had a ‘take it or leave it’ attitude towards the whole thing.
I think that such errors can partly be explained by Libya’s isolation. Very few companies take the trouble to even try to understand what’s going on, and with the shadow of war and all sorts of restrictions from banks and insurance companies that randomly pop up as soon as Libya is mentioned, you can almost understand the instinct to just send the cargo anywhere and be rid of it. Almost, but it happens at the client’s expense.
Unfortunately, clients are held captive by their global service providers. It is a sad reality that high quality service and professionalism are hard to come by, and so when entering a market like Libya, most companies tend to stick with the devils they know. They already have enough on their plates and don’t want to have to worry about logistics as well, so they just continue with their existing providers, regardless of the quality of their Libyan service.
But we invite companies having problems with logistics to and within Libya to leave their comfort zones and consider new provider for their projects in this troublesome part of the world. We guarantee it will be worth your while.
We in Samawat understand how critical and time-sensitive shipments to Libya can be, and we work with our clients to provide the best possible solutions for their needs. Each shipment is a privilege to handle, and unlike others, we don’t take our clients for granted. If there’s something you want to go to Benghazi, we’ll make sure it gets there.
So, I invite our potential clients to drop us a line – we’re sure to be able to help.
Tamim Fannoush