Dec 8, 2016

Posted by in Business tips

Secure ways of doing business for cargo forwarding companies

Small companies in the cargo forwarding field have a slight disadvantage on the market. Being controlled by ten big enterprises, business opportunities are particularly hard to find. To this, unreliable agents and subcontractors often have a great negative impact on them. Delayed deliveries and damaged loads are one of the numerous reasons such companies are losing clients on the daily basis. However, many have found that joining a global logistics network empowered them to gain a considerable market share, find reliable agents and many other benefits. If you run a business of this kind and you are interested in more details about such networks, below are some you might find useful.

Exclusivity in key locations for freight forwarders

Typically, networks of this kind allocate each port or seaport they have in their network to a single freight forwarding company. This makes it a lot easier and secure for them to operate and grow on the local markets, gain a considerable market share and become more profitable as a business. Moreover, the possibility of finding larger contracts enables business owners to reach a higher potential as a company and develop from a small to a medium enterprise.

Reliable partners and better rates from insurers and carriers

Small companies suffer a lot from not finding a partner they can trust. However, forwarding networks only accept as members enterprises with a stable financial status, good reputation on the local markets, and solid knowledge about it. Being a part of a network of this kind will make it possible for you to easily bond durable business relationships with other members. Moreover, because of the fact such networks have enough influence in the field, they will negotiate for their members profitable rates with shipping lines like airports and seaports, as well as a variety of insurers.

Intelligent tools for a more profitable business

Having the necessary means to properly operate on the market is an aspect that differentiates profitable companies from others. When enrolling in a logistics network, you also have access to all their software and tools. With it, you can easily find trustworthy agents, track your shipping and loads, load calculators as well as tools for schedule optimization. This will all enable you to work intelligent, become more productive and always remain secure.

Strict protocols and rules

Although a membership in a freight alliance comes with many benefits, members must also comply with a strict set of rules established at a large scale. In order to make sure no other member will have to suffer, you must prove you are a solvent, reliable company, and you meet all the network’s requirements. The set of rules must always be strictly followed by all members.

As you can see, although a membership in a freight alliance comes with a number of responsibilities, the members have also many benefits from it. Carefully research your alternatives before enrolling in one and see what the best option is.