Formag Agencies about the delivery and forwarding of the used cars from the USA

How did you start an import of used cars?

Formag Agencies is an agent of Turkon shipping line and the USA is one of the key directions for the company. We were motivated to increase the volume by searching for new importers from this area to Ukraine. One of the imported cargo types were cars.

How did you manage to reorganize the work from sea transportation to the complex services for car delivery and clearance?

Company management is passionate about cars, so we have been interested in the process from the start. First cars were shipped for ourselves by the service providers, which helped us to understand the process.

Did you have to transform the structure of the company in order to combine sea transportation and the new service?

After providing some complex services of the import of the used cars, we had understood that this kind of business required special structure and experiences employees with special knowledge in the sphere. Formag Agencies is the liner company first of all. That is why we decided to remain in our core activities. 

In this case, who are your customers?

Our core clients and partners are large importers for which we provide service of containers unstuffing, car forwarding and brokerage at the port. For individual clients, we sometimes take part in the auctions for definite cars, which were chosen by them. Then we provide the customer with the cleared car.

How many cars does the company handle annually and what are the general trends and market prospects?

Three years ago we started with 10-15 cars/monthly. In a year the amount raised to 200+ cars/monthly. January to August 2020 we handled 4857 cars and have taken place in Top 3 of car forwarder in the port of Odesa. June was a record month — 1080 cars. Despite the fact that COVID-19 is making its own adjustments, in general, the market for imported damaged cars is in a stable state, and its prospects directly depend on the customs legislation of Ukraine.

What is the key factor in company success?

People! They are the most precious resource. Both operational and office employees, both of who were with us from the start and who has joined us later —all of them make a valuable contribution to the success of Formag Agencies.