I hope you will excuse a short journey into distant history, to when our ancestors laid the significant foundations for the transport and shipping of goods within the territory that is now the Czech Republic. It‘s true that our country‘s in the middle of Europe deprives us of the joys of access to the sea, but at the same time the position is highly strategic and rightfully called the Heart of Europe.
Let us leave aside military or political considerations and focus on the economic significance of the location, particularly in terms of transport, also inextricably linked to established market relations and the existence of intersecting international trade routes. At first, connection to the Mediterranean region was of primary importance, though this was later replaced by routes connecting to the Atlantic shores, following the discovery of America, along with the advent of the first forwarding firms. Subsequent technical advancements, and in particular the invention of the steam engine, which predisposed the rapid development of rail travel, followed by the first freight vehicles on roads, were at the root of revolutionary developments in the shipping of goods as well as the marked acceleration of the entire trade chain. The task of the forwarder has gradually developed into planning, organisation and execution of goods flows according to the end customer’s demands. The forwarder’s objective is to meet all the market demands at minimum cost.
The forwarding of goods has been operated here since time immemorial, but following the creation of an independent Czechoslovakia the enterprise acquired a national dimension. Both Czech and Slovak businesses were founded, establishing an association called Čechoslavia in 1918, followed a year later by the Union of Czechoslovak Forwarders (Svaz československých zasilatelů). After World War II, Čechoslavia a.s. had offices in 32 cities across Czechoslovakia and offices abroad in Antwerp, Rotterdam, Hamburg, London and New York. After 1948, however, international trade in goods was organised under a state monopoly, with all its implications for the various aspects of business, including transportation and forwarding. A Czechoslovak joint stock company for international forwarding, Metrans, was established, replaced subsequently by a joint stock company for marine shipping called Čechofracht, which was established by a directive of the Foreign Trade Minister dated 12 March 1952. Initially Čechofracht operated a seagoing fleet of five ships, transferred in 1959 to a newly established joint stock company Československá námořní plavba (Czechoslovak Sea Shipping).
Progressive concentration of forwarding activities under the umbrella of Čechofracht, coupled with its professional management, resulted in positive developments that were appreciated by international partners and suppliers. In addition to large volumes of shipping – the result of the Čechofracht monopoly – the high quality of the firm’s employees was a significant contributing factor. In its early years, the company relied on experts drawn from its predecessor, but it was also quick to educate its own experts, recognised not only within the isolated sphere of the Council for Mutual Economic Assistance of the Eastern Bloc (RVHP), but also to the west of the country’s borders. A pinnacle was reached in 1963 with the acceptance of Čechofracht as a regular member of FIATA (International Federation of Freight Forwarders Associations). This removed any artificial isolation and Čechofracht became a globally recognised forwarder.
The year 1989 provided an opportunity for Čechofracht to prove itself in a free market environment and to demonstrate its capacity to respond flexibly to market demands. The company manifested its strengths in competition with international forwarders offering their customers global networks of offices, more or less indispensable to running an international forwarding chain. It is also worth mentioning that the majority of international competitors which opened branches in the country built them up around people who began their careers at Čechofracht. Unlike other communist-era foreign trade enterprises, Čechofracht still ranks at the top of Czech forwarders. Its acquisition by AWT, a powerful international group, has provided the opportunity to beome even more international.
I hope and trust that we will succeed in increasing the Czech market share of AWT Čechofracht, and also in continuing to train experts who are rightfy called the architects of transportation. What else can one wish to a sexagenarian? Of course, the best of health and happiness! And one more thing to conclude: Today, being 60 is no reason to retire!
JUDr. Martin Cetl
former Chairman of the Board of AWT Čechofracht a.s.
