All small freight forwarders understand how difficult it can be to maintain your business profitable in these times. With commerce being higher than ever, you always need to do your best to obtain new contracts, but the resources of an individual are always limited. This industry is largely dominated by 10 multinationals and anyone looking to obtain a decent profit should consider joining one of the cargo alliances that are currently available on the market and here is why:
In this industry, speed is everything and freight forwarders always need to help each other in order to deliver their products as fast as possible. If you are an independent forwarder, you have probably encountered problems in completing a delivery successfully more than once, especially in busy ports such as Tokyo or London, where everyone seems to be only concerned with their own problems. However, by joining an alliance you will be able to cooperate with other members and support each other. This means that every time a member needs to pass something through your port, you will be the one who will assist him with the delivery. In addition, by making new contacts you will be able to gain new orders because you will be part of a larger network.
The reason why many independent freight forwarders have a hard time obtaining contracts is because they do not have enough credibility on their own. This could all change if you would be part of a larger alliance, since you would display its logo on your freight and thus gain more credibility in the eyes of potential collaborators. It is one thing to deal with someone you do not know and quite another to have the certainty that that company has been vouched for by a large alliance that holds high standards of quality.
All major cargo alliances offer payment protection to their members, meaning that if an invoice is not paid in time, the alliance will release funds to compensate your loss. This is something essential, because small freight forwarders cannot afford to suffer too many losses, especially when they are at the beginning of the road.
The main advantage about being in an alliance is that you can collaborate with other members and thus open new roads for you. To this extent, all members have access to information about each other, so if you need someone in a particular area or line of work, you will always have access to the network’s database and others will have access to your information as well.
To conclude, if you are still not part of any alliance, you should seriously consider joining one because you will only have to gain. Even though there is a membership fee, you usually recover your money after a few months, once you start doing more business and gaining more contracts. You can always count on an alliance to have your back and offer you some much-needed support.