SUSTAINABLE DEVELOPMENT OF THE FORWARDER AS THE MAIN CHALLENGE IN THE WORLD ECONOMY Ljupco Sotiroski1, Borka Tushevska2 1) 2) University

Goce Delchev Stip, Republic of Macedonia E-mail: ljupco.sotiroski@ugd.edu.mk//00 389 70363006 E-mail: borka.tusevska@ugd.edu.mk/ 00 389 77 910 487

Abstract This subject refers to the latest developments in the organizational changes and sustainability of companies in the field of shipping, transport, and logistics in the Republic of Macedonia and the region. By analysis and elaboration of these issues, it is emphasize the importance of this sector for the overall domestic, regional and international trade, simultaneously to point out the necessity of its imminent transformation that is basic step for achieving sustainable development of the freight forwarders. The complexity of planning the forwarder's activities in organising of the logistics chain indicates the need for appropriate methodology in order to simplify the procedure of planning. The phenomenon globalizationand diversification of trade activities put the freight forwarders and transporters before a big challenge. At the same time this challenge was a test of their survival. The Companies from this area had to decide whether to invest in their transformation in logistic operator (3PL and 4PL services providers), to allow a friendly takeover by higher shipping (freight forwarders) companies, or finally to get lost in the ferocious competition, and gradually disappear from the shipping market. Research conducted on these issues adduce us to a several key points that it seems functional for creating and implementing successful business politics, in domestic and regional logistics sector. Namely, by using a few basic methods of research, interview, questionnaire, and comparative methods it is concluded that the concentration of capital in the hands of a few global logistics giants will throw out market freight forwarders who operate as small and medium enterprises. Theory pointed and practice confirms the fact that the small and medium sized forwarders that will not be able to transform into logistics providers, will disappear from the market. The research done in this field point out that in terms of world crisis and strong competition posed by countries in Southeast Asia, the only relevant way to ensure sustainable development of this sector refers to transformation, organizational changes and acting in the position of logistic operator. Keywords Sustainable development, organizational change, logistic operator, freight forwarder, 3PL, 4PL, service provider

Introduction In terms of modern trade, traditional freight forwarders are increasingly losing their meaning. The process of globalization, diversification of trade activities and concentration of capital, contribute to moving the boundaries of freight forwarders, and their transformation into a logistic operators (Kumar, 1999, p. 4). Influenced by global trends mentioned above, freight forwarders became a companies for logistic in transport and productions. Gradually, logistics in transport and production have become essential components with severe impact on the implementation of trade deals on leading trade companies. Classical freight forwarders moved their limits of action, transforming itself into a fuller logistic management providers with broad logistics capabilities. In the transport process and logistics, forwarders developed into a centers which ensure an effective supply chain, with the potential to increase income, to expand production, and minimize costs by creating a rational distribution system. All of this, contributed to the need of further research in the field of shipping and transport, emphasis the process of transformation as a condition sine qua non for survival and competition in the global market. Namely, as any service sector and forwarders approach to meet the megalomaniacal export-import needs. Alone here, global needs imposed the creation of global services, which in ultima linea means global services companies. From the conceptual view, the Logistics forwarder, as organizer and planner of coordination and integration of all the transport and logistics chains elements, uses adequate ways and methods in the process of planning and decision-making. The wave of transformation that swept the industry is reflected in forwarding business. Hence, the numerous statutory changes that have affected shipping companies. Increased global trade makes changes on the structure and nature of the service sector. Most companies, have been transformed into international and global trade companies. The complexity of the business environment contributed to the signing of cooperation agreements between the suppliers, customers, competitors, etc. Based on these cooperation agreements, a network of complex business relationships was build up. Number of status changes (mergers, acquisition, joint venture) marked modern trade world. . Trade liberalization and globalization contribute to the removal of trade barriers and strengthening of international (global) competition. Parallel with this, the process of transformation of the industrial network into a digital economics was in expansion. Advances in information technology and further expansion of internationalization and globalization, contribute to growth of world economy and the changing business environment. To ensure its existence and position in ferocious competition, freight forwarders necessarily transform themselves into logistics providers 3PL and 4PL service providers. 1. Development and promotion of logistic forwarders The changes that affected industrial production largely reflected to the expansion of logistic services worldwide. Manufacturing and service sectors have become global centers for providing products and services. Under these operating conditions, companies have begun to delegate part (in segment and in whole) of its commitments towards third parties (outsourcing).

These new modes of production and distribution switch on transport facilities offering its customers integrated, fast and reliable deliveries. Along with these changes, the need for global logistic services dramatically increased These services could only be offered by multimodal transport operators: 3PL and 4PL providers. The affirmation of logistic forwarders, naturally arise from the attractiveness of the logistics services, offered by freight forwarders to their customers. Modern shipping companies, have taken into own hands the entire transportation process and logistics. Freight forwarders acted on the disposition of its clients, whose sole duty was to indicate the order and the place of delivery. Forwarding agent has a full control over every stage of the transport route. He usually appears as sender and recipient of the goods. At the port reception, forwarder agent is taking the goods, organizing its unloading, storing the truck for distribution to the final destination. With their own or leased vehicles, freight forwarder imported the goods and takes all necessary measures for clearance of goods. All this indicates that the scale and scope of operation of freight forwarders is growing. Exporters-importers companies are increasingly oriented towards manufacturing and marketing, letting the transfer and distribution to freight forwarders. The surveys conducted in this area show that the attractiveness of the logistics forwarder growing in the direction of expansion of bundled services that are offered (Wong C.Y., Karia N., 2009, p. 1-17). Through the implementation of EDI system, training their own personnel and invest in other heterogeneous sectors, import-export companies transferring their goods around the world through electronic input of their code, and indicating the point of loading and unloading. 2. Factors that imply growth in the value of logistics services In recent decades the value of logistics (service) sector has seen continued growth and development. This affirmation of logistics services is determined by more or less important factors that directly affect the logistical capabilities of the operators. The underlying global factors that promote logistics providers is technical and technological progress, the development of information and communication technology, outsourcing services and concentration of capital in several global entities. The process of globalization, the removal of trade barriers, strengthening the international competition and the spread of individual markets beyond national boundaries, imply a direct increase in the value of the logistics sector. Namely, by linking numerous heterogeneous entities in supply chain, inevitably imposes the need of logistical support services. Globalization has contributed to the creation of centers for providing logistics services. Under the influence of this phenomenon, most freight forwarders have expanded their business, merged to major shipping companies, finally they were taken friendly (friendly takeover) by larger forwarding companies who promptly invested into segments that came from the scope of work of the classical firm. All this contributed to the creation of global logistics centers (mobile operators) who took the bulk of the market. To meet the needs of this broad category of subjects, freight forwarders must implement EDI system. It seems that the use of IT services is a condition sine qua non for development of logistics operators. The emergence of electronic disposal, electronic banking, electronic signature and electronic supply, electronic bill of lading and loading practically made possible the communication between multiple related entities that operate under the umbrella of one company (Kolakovi, 2005, p. 207).

Parallel with the development of IT technology stand outsourcing services which also had implications on the logistics sector. Namely, by indulging in things that are beyond the basic scope of operations of companies, logistics operators such as specialists are increasingly coming to the fore and promote the field of transportation and manufacturing. Gradually the development of transport logistics are developed in the production and logistics. In this sense, the freight forwarders in the role of 3PL providers frequently takes actions that increase the value of goods: packaging, labeling, marketing of goods declarations accompanying acts as the basic responsibility for organizing and implementing the transfer of goods. Finally, series of factors affect the growth of the value of logistics services: containerization, just in time delivery, door to door delivery etc (Matopoulos, 2009, p. 301). All the above factors imply growth in the value of the logistics sector. Specifically, each of these factors makes a kind of influence on appearance and development of logistics operators as specialists in transport and shipping. The lack of logistics providers in large measure would impede the transfer of goods and would definitely reduce the volume of goods that can be transferred in a certain time interval, due to logistics arising from their actions. 3. 3PL and 4PL services provider Expansion of logistics as a process of planning, implementation and monitoring of cost-effective flow, storage of raw materials, semifinished products, finished products and transfer of information, marked the modern industrial production and global trade (Zelenika, Pupavac, 2008, p.16). Logistics providers are companies which often act as an intermediary who undertake execution of logistics activities. In business practice logistics providers often act in the form of carriers, forwarders, NVOCC (non-vessel operating common carrier) and finally as a 3PL and 4PL service providers. 3PL represent companies that provide logistics services for multiple needs of its customers (import-export sector). Contrary to conventional forwarders and carriers, 3PL offer a wider range of services participating in all phases of the transfer of goods. The expansion of these entities result from their participation in the transaction and the process of concentration of capital in one entity . This also result from the ability to realize all the necessary activities. As entities focused on organizing the transportation, storage, packaging, transportation, loading and unloading of goods, 3PL contribute to the reduction of distribution costs, greater security in the cattle operation, and finally, speed of transaction execution. In business practice, the most important LPs are 3PL providers. In contrast, such providers exist in the advanced stage of 4PLs providers whose engagement means flexibility, efficiency and cost reduction in the supply chain of the maximum level. Despite 3PL that actually relate to storage and transportation of goods, 4PLs are usually part of complete outsourcing companies. The role of 4PL is to implement a production value of companies. In essence, the creation of added value service, is reflected in the overall operations (Mason G., 2005, London, p. 1-143). The engagement of 4PL providers as an agent of integrating traditional 3PL providers is growing. Namely, in practice, more and more companies pretend to operate as a 4PL services providers. Specifically, there are companies that pretend to "full packet service", providing a reduction in cost and maximum efficiency in the operations of companies. These global trends are typical for Macedonia. 4. Research methods

Empirical research is the main concept which has been used during this research. As a confirmation of our theoretical views, we use comparative methods, questionnaire and face to face interview for analysis and elaboration of these issues. The main research refers to the companies with domestic capital vis a vis companies with foreign capital. Comparing these two categories of subjects, we conclude that freight forwarders in Republic of Macedonia more or less are part of world shipping business. Bearing in mind the results from the questioner, we emphasize that almost every freight forwarder in Republic of Macedonia build a strategy for stability, sustainability and prosperity. In order to follow the world shipping trends, freight forwarders made organizational change, and transform themselves in 3PL and 4PL. Of course there are great differences between small and ground freight forwarders. Namely, the great forwarding companies continuously invest in extending their range of activities. Simultaneously, small freight forwarders invest in a small scope and learn how continuous with their work. The results from the interviews made with management show that almost every freight forwarder in Macedonia made organization change, or made attempt to do it. Proper results about this research also came from the questioner. Namely, according the questionnaire, 100 % of the freight forwarders present a concept for their transformation in 3PL. In the same time, practical aspects trace that every freight forwarder is working on extending his business. Finally, these methods of research help us to come to certain conclusions and suggestion for the freight forwarders. 5. The position of Macedonian freight forwarders in global supply chain In the field of domestic logistic, freight forwarders seriously joined the global trend of 3PL and 4PL. Regardless of the source of capital (domestic or foreign), freight forwarders in the Republic of Macedonia joined the world trend of transformation and diversification of trade activities. According to our research, there isnt a freight forwarder in the Republic of Macedonia, which doesnt pretend to act or act as a 3PL or 4PL services provider. This situation contributed to the increasing need of research in this field. In this article, we focus on the analysis and elaboration of differences between the innovation of domestic and foreign companies in the Republic of Macedonia. Actually, we explore the new organizational change in the field of freight forwarders, and their impact on stability and sustainability of the Macedonian freight forwarder companies. Much attention is paid to the analysis of methods for building long-term development strategy, and the role of the management in that process. The situation is different in foreign and domestic companies. To be clearer, the small domestic companies operate with low capacity. This is because they invest less in innovations, new technology, skilled labor and management. They dont have a strategy for development. Generally they focus on retaining existing customers. In contrast, foreign companies are oriented to the development of retaining existing ones, and conquest new markets However, they have the opportunity to learn how to increase their profit. In any case, this is a great advantage for small freight forwarders. Thats how they build their capabilities to respond on global need of export-import sector. In this direction are the results of the survey. Under the influence of globalization, diversification and global downturn, freight forwarders worldwide inevitably had to accede to organization, personnel, marketing and other changes. This was also the case in the Republic of Macedonia. Indisputable fact

is that there are differences between companies, but the fact is that small companies have made move, which was inevitable for their existence on the market.

5.1.

Freight forwarders with domestic capital in the Republic of Macedonia

In Republic of Macedonia act numerous and heterogeneous types of freight forwarders. Generally, in the global market, the biggest part of the freight forwarders of services is conducted by large (foreign) freight forwarders, known as forwarders providers of services that offer full package services. The research done in this filed point out that the biggest part of shipping market is conquering by freight forwarders with foreign capital. Figure 1. The Origin of the capital

The freight forwarders established exclusively by domestic capital, almost did not take action other than what is called classical transport. In this sense, the freight forwarders in the Republic of Macedonia act as a customs agents. Most of them until recently were not known categories to the local customs, authorized economic operator, added value services etc. This situation will inevitably contribute to the disappearance of small freight forwarders from the market or their takeover by larger freight (logistics) providers. The process of survival of freight forwarders with domestic capital is directly conditioned by their transformation. Hence, as the practice itself, the Macedonian freight forwarders build strategy to expand its business and providing long-term selling of their services. 5.2. Freight forwarders with foreign capital in the Republic of Macedonia

In Macedonia operate multinational companies for transport consolidation (Logwin AG - International & Transport Air Freight, Deny Cargo, DB Schenker, etc.). These companies offer full logistics of moving goods in the international market. More specifically

under the legal framework of these companies exist several business ventures that contribute to increasing their attractiveness to the market. In terms of this, the offer of full package services, inevitably leads to market success. This factual situation in the field of freight forwarders resulting from the global trend of offering systematized and centralized packet of services and information for implementation of trade deals. The opinion of discarding small freight forwards from the trade market is excitedly based on a different concentration of commercial activities into one entity. The Macedonian factual situation is facing with such situation. This is about the freight forwarders established by foreign investment. Namely, there are numerous statutory changes which these companies have done in the last decade. As a part of the overall development strategy is the establishment of services providers in the Republic of Macedonia. In this context, the German company LOGWIN which offers wide range of services in the market as well as transport, insurance, packing, inspection, labeling. Especially, characteristic in this segment is the temporary trend of import which for the Republic of Macedonia doesnt represent anything else taking advantage of using cheaper labor. The same factual situation can be found in the case of operating of German company Schenker. The package of services offered by this company to the market consists of all those specified and managed under the umbrella of value added services, which give practical added value of transferred products. The same line is following the world famous company DHL, whose base of the service sector is door to door transport, just in time delivery, etc. All of these companies, through the process of expansion of its business into new business ventures, investments in information technology, are successfully surviving and ruling on the market. In this context, the main idea was to focus on some real practical research, which confirmed the above mentioned constructed theoretical views. This research is aimed to serve as a guide to Macedonian freight forwarders towards what to direct their activities. The main goal is focusing to maintain its business, which simply leads to the enhancing of Macedonian economy at all. 5.3. Practical aspects of Macedonian freight forwarders

In order to come to a proper and useful research for the economy, we made an exploration connected with several questions which gave us answer for some practical aspects of freight forwarders in the Republic of Macedonia. Basically, we focused on the organizational change of the companies, and their strategy for growth and development. In this contest, we can emphasize the fact that almost every freight forwarder in the Republic of Macedonia has extended his scope of activities. Figure 2. Extending the market of activities

In correlation with this issue, stands the question about the reduction of some of forwarding agent activities. According to the research, there is not a freight forwarder which stopped to do some activities. Figure 3. Stopping certain activities or services

Finally, the issues that has a direct connection with stability, sustainability and prosperity of the freight forwarder: organizational changes and necessity of building a proper local, national and global development strategy. This question is in direct connection with the success of global economy. Namely, the growth and development of the economy is conditional from the successful work of freight forwarders. The reason for this is the fact that shipping, transport and logistics are basic components of world trade which in ultima linea take the biggest part from the world economy. Figure 4. World trend transformation to a 3PL and 4PL services providers

6. Business policy as a factor for the successful operation of freight logistics provider Business policy is an essential element for growth and development of each company. In essence, business strategy is a policy of the company that includes a set of activities undertaken for successful operation on the market. In the area of transport and shipping, building the right strategy is a fundamental prerequisite for successful action in ferocious (global) competition. Creating a successful business policy is correlated with the question how can a freight forwarder successfully and rationally achieve the set logistic goals? The latter is correlated with the intellectual capacities (human resources) and investments made by the freight forwarders. Within the shipping companies operate more heterogeneous departments responsible for different segments of shipping operations. Hence, essential for the operation of shipping is creating incremental business sub policy in each shipping service - commercial, tariff, customs, acquisition service etc. The success of forwarding agents work is conventional from a proper strategy for development. Influenced by contemporary economic trends and the changes in industrial production, the process of globalization and development of IT technology, finally the impact of the global economic crisis, freight forwarders were in a position to create more sub policies combining with staff available to, marketing, finance, production etc.. Finally, in the last decade, influenced by the global crisis, freight forwarders were forced to create and implement strategies to maintain their business. Influenced by the global economic crisis, work on shippers, transporters, logistics operators fell by 30 percent. This imposes the need for determination of new objectives to be achieved in a predetermined time interval through the use of new instruments, stocks and other assets that ensure growth and development. 6.1. Freight forwarders personnel policy

Creating and implementing successful personnel policy is essential for the survival and development of freight forwarding companies. This is quite logical considering the impact of human capacity on the ability of the forwarder to realize the disposition of his principal under specified conditions. Personnel policy is one of the basic sub policies of forwarder agent. Considering the organizational structure of the shipping companies and their

role in the implementation of orders, it is clear that the importance of creating and implementing the correct strategy is overriding for the success of the companies. In this sense, knowledge, experience, skill, motivation and lucidity of services in shipping, no efficiency and effectiveness, growth and development will ultimately not successful logistics firm (Holly, Pavlic, 2004, p. 116.). The successful personnel policy is closely related to the education, training, acquiring new knowledge and experience in the field of organization and realization of goods: transfer, storage, insurance, packing, control of goods, external trade etc. The process of training involves training services at all levels of management. In this sense, effectiveness and efficiency in the operation of forwarder comes to the fore at full capacity if all levels of management effectuate proper business policy. Therefore, improvement of high, middle and low management leadership is necessary for concentration of forwarding agent to the needs of modern economic operations. Investment in freight forwarding services represents one segment of the activities undertaken by top management in order to maintain and increase the growth and development of the forwarder. Occurrence of electronic banking, electronic offer and signature, electronic bill of lading, imposed as necessary electronic training at all levels of management. Today's shipping companies are geared towards full implementation of electronic communication starting from the date of the order from the customer, paying the price for taking notice of the goods and so on. Finally, placing in this segment of freight forwarder operations, mean realization of an essential part of business policy of the forwarder.

6.2.

Freight forwarders market policy

Forwarding market (marketing) policy plays a crucial role in establishing a forwarder services market. Through good marketing strategy, freight forwarder ensures market for his basic and special services. Guided by its logistics facilities forwarder creates and implements marketing policy according to the needs of the import-export sector. As a process Marketing gives opportunity for creation and implementation of ideas, promotion and distribution. Although general, this definition is a full application in the field of freight forwarder marketing. As a concept, marketing present a business orientation of freight forwarder, focused on import-export sector. Forwarder builds strategy to perform the tasks before they begin to be realized. Strategy is a tactic that the forwarder applies in the implementation of business policy development. Unlike the strategy that serves as a forwarder roadmap for achieving the goals, tactics refers to the specific methods that will be used in achieving the set goals. In this sense, the strategy determines the direction of the market action. In contrast, market strategy (marketing strategy) specification covers the roads and ways that enable the realization of goals. The creation and implementation of appropriate strategy (marketing) is conditioned by prior application of analysis of possible alternative routes to achieving the goal. At the same time, the composing of an adequate strategy forwarder must be a rational choice meaning of what strategy the most efficient and most economical way to keep the whole exercise. Forwarder collects information and data from his offices, conducts analysis on the tariff system and tariff policy, market conditions and the level of economic growth and real development in order to position the market and to create a strategy that will positively affect its profitability.

In modern conditions of trade, build a proper marketing strategy is necessary for survival and development of freight forwarding companies. Namely, in the last few decades taking into account all the turmoil in the business environment, freight forwarders had to decide whether to expand its business, whether to incorporate, merge or be taken from other shipping, trucking company or logistics provider. Forwarders had to move away from their facilities and opt for what strategy or combination of strategies that best suit the needs and interests of their principal and interests of entities whose activities they coordinate. Only shippers had already set a good marketing strategy persisted market conditions when each industry was hit by the global economic crisis. 6.3. Freight forwarders financial policy

Financial policy is one segment of business shipping policy. The financial policy is essentially a monetary expression of forwarder business policy. The main objective of the financial policy is to ensure maximum financial results of his operations ( Nikolovski, 2002, p. 96). The financial policy of the forwarder is aimed to providing a stable financial situation as a forwarder would be able to carry out orders from his customers. Like any other subject (participant) in trade, forwarder initially focuses on avoiding financial problems. Regarding the finances of the forwarder, the role of tariff policy is a key for proper convey of the client disposition. Namely, in the absence of sufficient funds, forwarder is unable to continue its operations or to cover material expenses incurred. From these and numerous other reasons, the creation and implementation of appropriate financial strategy is crucial for the survival, growth and development of the forwarders. Forwarder agent establishes and implements policy through its current financial, medium and long term plans and programs. These plans and programs provide intentional (planned) directing of the activities of management for selection of optimal solutions in operation. Proper financial framework, provide growth and development of the forwarder. This financial stability is influenced by several factors expressed in several sub policy: policy of obtaining financing, policy financial relationships with suppliers, the policy of obtaining funds from the purchase policy of obtaining foreign currency assets, depreciation policy, financial policy setting and allocation of total income and expenditure. In essence, the successful creation and implementation of each of these sub policies reflects the general financial policy implemented by forwarder. Namely, in obtaining the funds, forwarder must go from the principles of cost effectiveness. In case he lends his client, it is necessary to take into account the finance that pays and to compare the performance gains from the disposition. Rational forwarding agent approach is necessary and in the implementation of the policy of financial relations with suppliers. The Freight forwarder enters in numerous legal and economic relations with heterogeneous entities from which it derives the obligation for payment of debts arising in respect of completed tasks. In politics with financial relationship, the key issue for freight forwarder is: which service, how and when to pay. Proper ranking of suppliers for payment is in close relation with the growth and development of the forwarder. The proper design and implementation of this policy depends on the success of other sub policy. More precisely, this sub policy must be in correlation with the rest. In close connection with obtaining the funds from the buyer stands policy of selling financial assets. Forwarder in a position to place part of their faineance only if he succeeded to obtain part of the funds owed. However, practice shows that freight forwarders take a big risk just to meet the need of his clients.

All listed sub policies essentially are summarize under the policy of setting and allocation of revenues and expenditures that are made. Even a freight forwarder start with his own interest during the creation of financial framework, he also takes care for his clients, convincing that his commitment is necessary for successful completion of the transaction. 6.4. Freight forwarders development policy

The successful development sub policy is directly conditioned by adequate sub policies (strategies) that forwarder creates and implements during shipping operation. Through development policy, forwarder determines the basic mission of growth and development that strives to forwarder. Creating robust short, medium and long-term program for growth and development is characteristic of major shipping companies (logistics operators). In the field of small freight forwarders, the development program has no meaning. This is because its not able to see the significance of this component, nor realized the program for growth and development. More specifically, in modern conditions of trade, creating a program for growth and development is characteristic of global logistics operators within are sups maze as numerous offices and subsidiaries worldwide. The work of each of these units depends on the position of the forwarder (operator) in the business world. In practice, global logistics operators open and closes business units are taking the plan and program for growth and development. Everything in the long term management would appear to be cost effective and cost generally becomes part of program development. In this sense, logistic operators opened offices at ports and airports, expanding its activities including being package of goods, control over it, opening warehouses, removal licenses for local customs clearance etc. The Development policy is in direct correlation with the inflow of funds, investing in the personnel office, and marketing. All together towards creating adequate policy development is going to be a function of permanently ensuring maximum financial results that would provide primary liquidity forwarder, his growth and development. Conclusions By definition, The Classic forwarding is becoming a thing of the past. New forwarding agents have expanded the forwarding services definition with coordination, organisation and execution of all the activities within forwarding system. Concerning the development of forwarders' activities in supply and distribution, companies' networking technological development, information technologies revolution, which all together represent the uprising of the networked community, new solutions and technologies as well as modern approach toward forwarding are necessary to create forwarding for the new millennium. Modern forwarding activities have enabled the growth process, economic development as well as selection of forwarders for the new millennium as a coordinator, integrator and supervisor of efficient logistics activities manager as well as respectable dominant architect oflogistics system processes at domestic and international marketplaces of logistics services. According to the above stated, it is evident that it is necessary to change the current practise of offering parts of services from numerous participants that has resulted in uncoordinated and "broken" logistics services such as transport, packing, warehousing which have then resulted in delays and breaking time limits of deliveries as well as increasing stock quantities within the logistics system.

Therefore, classic forwarders have to consider that the only way to stay and survive on the logistics and traffic marketplace is to grow, develop and profile into logistics forwarding operator which should be in the function of optimal connecting potential resources with suppliers and production centres with consumers. Using appropriate methods of research, the results are related to the certain empirical results that confirmed our theoretical views. Taking into account the global situation in the business community, focusing on the logistics sector, the following is concluded: specialization of freight forwarding services is long past stage after which follows the process of integration of freight forwarding logistic to transport services, and finally (latest world trends in this field), centralization of these services in a logistics operator. All this contributed to the creation of multinational companies in the market of logistics services (logistics sector). Empirical research does point to the conclusion that small and medium-sized forwarding companies in the Republic of Macedonia and elsewhere in the region will not be able with its capacity to satisfy the needs of regional and global markets. Extensive importexport worldwide, dictated by the world's great economic powers, contributes to a numerous mergers, takeover, fusion of the companies. This global trend made a strong impact on freight forwarder environment in the Republic of Macedonia. The great shipping companies with foreign companies already established in the Republic of Macedonia, accept this world trend in full capacity. This new concept of transformation strongly influenced on the creation of a new strategy for market access and for all participants in the business community. Research has shown that small and medium sized forwarders attempt to adapt to the new world trend. Theory pointed and practice confirms the fact that the small and medium sized forwarders that will not be able to transform into logistics providers, will disappear from the market. Actually, in the terms of world crises, the biggest success of this sector is to secure balance in development, sustainability in the ferocious competition and saving qualified workforce. By reducing costs, investing in sectors that are profitable, freight forwarders must created a strategy aimed to secure the sustainability of their business. These were the main segments on which the freight forwarders were aimed under the concept of sustainable development in the world economy. The research point out the sustainability is the highest result that can be achieve in this conditions. In to achieve this, the organizational change in this sector is necessary. Any other behavior will bring them in unenviable position consequently they will disappear from the market. Finally, the choose remains to the freight forwarders.

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