Why so many companies join a freight network

Freight forwarders find difficult to achieve success in such a competitive domain, and they are always looking for a way of growing up. The best way to find new partners and progress in this domain is to join a freight network, which is usually a powerful alliance of companies from multiple locations. These organizations bring together only experienced and trustful forwarders, because this is the only way that assures them success. The main principle of freight networks is reciprocal cooperation. This is a sure way of expanding businesses, because it reduces risks and costs, and gives them the opportunity to compete against large companies. These alliances work as mega forwarders, which receive a huge amount of shipments, and because little companies are placed under a well-known name, they can receive even big contracts. This gives them the opportunity to get great rates in their domain. If they would not be associated with brand names, they would not have the possibility to get big contracts because they were considered unreliable.

The biggest step in this process is to be accepted by such an organization as its member, because after this, the little company will benefit from multiple advantages. More and more forwarders are looking to become a member, because they will have access to an exclusive territory, and these alliances have a company representative in every one of the world’s biggest airports and ports. When joining such a cargo network every member know its territory, and this helps them avoid conflicts and overlapping. The persons that want to hire a forwarder only have to go on the website of the network and search one by the name of the city, where the shipment has to be picked up or delivered.

When a forwarder becomes a member of a cargo network he will receive help from all the other members, and this includes free hands, routed cargo and sales leads. They will still have the possibility to work with their old partners, so this gives them the free of choice. Every new member is carefully selected, and this assures the old ones that they will continue to benefit from safety and security. When a new forwarder is evaluated, are taken into consideration its creditworthiness, competitiveness, financial strength, business volume, and reputation. After being accepted, it is bound by some strict rules. To answer in a short glance at the question “Why so many companies want to be part from such an alliance?” well, because they will instantly benefit from improved sales. Because they will have to deal with other member forwarders, they will work in a secure environment, which also brings them payment protection. They will benefit from a special coverage in case of non-payment or closure. The company is listed in the forwarders network list and new clients will contract it. Forwarders will also receive daily administrative support, and they will receive updates and useful information. An extra advantage is that they will have a discounted rate on their cargo insurance, which will help them save more money.

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