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Strategies for Working with Online Freight Forwarders

sahil bajaj

Sahil Bajaj

Senior Specialist - Marketing @ Shiprocket

August 14, 2024

13 min read

Do you want to expand your business and its reach by transporting your goods to a different region within or outside the country? Whether you have started a new venture or are running a successful company, you can unlock your business’s growth potential by working with online freight forwarders and selling your products to consumers worldwide.   

However, before choosing a freight forwarder for your business, it is important to consider its set-up, such as licensing and insurance, to ensure the safe delivery of goods to the destination. A robust and efficient working relationship with a freight forwarding company can offer numerous benefits, from well-regulated logistics and lower freight costs to quicker transit times. So, collaborating with a logistics partner you can rely on is invaluable. It sets you and your team free from tracking packages or being concerned about your freight. This will help you focus on other core parts of your business.

Strategies for Working with Online Freight Forwarders

Working with Digital Freight Forwarding Services

In today’s digital era, freight forwarding involves more than just moving goods from one place to another. Digital freight forwarders use advanced technology to coordinate and control the transportation of goods. This includes activities such as carrier sourcing, vetting, tracking documentation, pricing, data analysis, and reporting. Owing to the freight forwarder’s technology-driven processes, they operate more efficiently than the traditional players in the market. 

Working with online freight forwarders is relatively easy. They handle bookings and shipments on digital platforms like an online marketplace, where you can easily connect with them and manage proposals, orders, and shipments. The best thing is that they have transparent functionality and send the latest ETAs or notify you if any delays occur. 

Furthermore, digital freight forwarding has replaced labour-intensive, paper-dependent methods with automated systems, enabling businesses to oversee their logistics operations seamlessly. Therefore, working with them increases efficiency, reduces cost, and allows real-time tracking and monitoring of shipments. This helps companies get complete visibility throughout the entire supply chain.

Comparing Freight Forwarding Services and Carriers

Here is a list of the top freight forwarding services to help you compare and find the best one for your business-

1. CargoX

CargoX is one of the best digital freight forwarders. It integrates numerous marketplaces, carriers, and carts into one international shipping platform. CargoX enables you to make cross-border B2B shipments with just a few clicks. 

It combines operational ease and expertise to move your bulk shipments swiftly. It provides prompt quotations and pickup within 24 hours. Moreover, CargoX’s digitised workflow ensures easy and paper-free documentation, complete shipment visibility, and crystal-clear invoicing.

2. LORDS Freight India Pvt Ltd

LORDS Freight India Pvt Ltd is Mahindra Logistics’ wholly-owned subsidiary, which specialises in freight forwarding services for air and ocean exports and imports. It collaborates with more than a hundred international network partners and operates in almost every city in India. This makes it easy and quick to send shipments anywhere in just a few clicks.

3. Om Freight Forwarders

Om Freight Forwarders has more than four decades of experience in the shipping industry and an extensive network in more than 700 unique national and international locations.

The platform provides its clients with logistical, legal, warehousing, and forwarding services. Moreover, its in-depth knowledge of global trade regulations and smooth, paper-free documentation processes further contribute to its impregnable reputation in the market.

4. Ocean Sky Logistics

Ocean Sky Logistics provides a wide array of logistics solutions to its customers, including sea and air customs clearance, LCL and FCl import/export customs clearance, and advanced air and sea freight forwarding services. 

Ocean Sky Logistics’ expertise in handling complex logistics challenges, meticulous planning, and stringent quality control measures make it a trusted partner for numerous businesses.

5. APT Logistics

APT Logistics is known for its range of services and global reach. It operates in more than 150 countries and provides end-to-end freight forwarding solutions as well as flexible services to its customers. The platform ensures swift and dependable delivery across the globe by getting brief insights into any business before taking over its delivery project.

What Sets Online Freight Forwarders Apart?

Online freight forwarders use digital platforms, innovative technologies, and process automation to optimise the freight forwarding process. Working with them is less time-consuming because they provide instant prices, carrier availability, automated documentation, real-time tracking, and more flexibility in terms of shipping options. 

Nowadays, people are fast-moving, well-informed, and impatient. Therefore, they want to get in touch with the company quickly without investing much time. Thus, online freight forwarders have included digital tools on their websites, such as chatbots and chat with a customer care executive, so that people can connect with them quickly and efficiently.

Getting instant quotes and transparent pricing makes it easier to compare rates and carriers and choose the one that best suits your business needs. 

Furthermore, online freight forwarders offer better visibility, so clients know firsthand where exactly their cargo is and when it will be delivered. They also provide the option to share the documents online through their website.  

Benefits of Partnering with an Online Freight Forwarder

Let’s take a look at some of the significant benefits of working with online freight forwarders-

  • Unlimited network

When you partner with an online freight forwarder, you can operate and sell your products worldwide. The best part is that you can reach more customers, increase brand awareness, and thus increase your sales and revenue.  

Digitalisation enables freight forwarders to provide services globally at the same speed as operating nationwide. In contrast, traditional freight forwarding companies can be limited in the solutions and routes they offer. 

You can book your shipments and contact the online freight agents even while being in entirely different time zones, as their online system works round the clock.

  • Transparency

Another significant benefit of opting for an online freight forwarder is real-time tracking and visibility of the shipment throughout the process. These timely insights allow you to plan more effectively and respond to developing situations accordingly. 

The payments and documentation processes are transparent, as they show all the paperwork required to complete your shipments plus the exact amount you need to pay from the point of collection to the point of delivery.

  • Decreased shipping costs

Partnering with online freight forwarders can also help lessen operational costs. You will be able to compare quotes from different companies quickly, so you can make the decision fast. Some companies also help you find the most cost-effective shipping solution based on your specific requirements. 

Another reason for the reasonable pricing is that freight forwarders use automated systems that can do data-heavy tasks far more efficiently than humans, resulting in lower overhead. 

  • Improved customer support

Online freight forwarders usually offer relatively more ways to provide customer support, from self-service resources embedded into a platform to real-time 24/7 chat and messaging. They understand the need for personal engagement to ensure excellent customer service. Also, with modernisation, they are giving access to updated services and processes to create an entirely new experience for their customers. 

  • Scalability

Working with online freight forwarders makes it easy for businesses to adapt to changes. They can easily add new carriers and features to their online platforms, paving the way for rapid expansion.

Since they rely on digital technologies and processes, these forwarders can scale up more readily. This operational capacity can modify your carrier relations as your supply chain grows or shrinks.

How to Find Online Freight Forwarders?

You can find the best freight forwarding company easily sitting at home as they are available online. You just need to type the best online freight forwarders on Google, and it will show you the top service providers. Once you see the list, open their website, and possibly you will find a chat option or contact details.

Many online freight forwarders have instant quote engines that allow you to get a cost estimate for your shipment. All you need to do is fill in the required information, such as the type of goods to be shipped, quantity, destination, etc. After reviewing all the details, the freight forwarder will provide you with an instant price quote. 

By searching online, you can evaluate them, read their reviews, and choose the best freight forwarder as per your budget and requirements.

Types of Online Freight Platforms

It is also essential for you to know the different types of freight forwarding platforms so it becomes easy for you to understand and analyse which one is more suitable as per your business size, customers’ preferences, and needs.

  • Traditional freight forwarders- They have adopted the new technology to digitise but still do most of their tasks manually or in the old ways.
  • Digital freight markets- They majorly connect importers and exporters with custom brokers, carriers, and forwarding agents.
  • Freight forwarding platforms- They are the leading platforms, owned by multinational logistics service providers. These platforms have an online front end, which is connected to proprietary technology and is supported by a global network of resources and assets
  • Independent online platforms- They are usually run by tech companies along with traditional freight forwarders.

An Overview of Online Freight Forwarding Operations

Let us understand in detail the basic online freight forwarding operations.

  • You visit the freight forwarder’s platform and fill in your requirements, and they will respond to you with an instant quote.
  • In case they do not send an instant quote, they might connect you with a human agent, who will provide you a customised quote as per your needs. 
  • If you are happy with the quote, you can continue further by following their online procedure to create the booking.
  • During the booking process, you will need to provide the relevant documents required as per the state or country you are sending the goods.
  • After providing all the details, you will have to make an online payment through the transaction methods available. 
  • Now, as soon as the payment is made, the shipping process begins.
  • You will get all the details about your booking, shipment date, and consignment number.
  • Using the consignment number, you can track the shipment starting from the origin to the final destination. They also send real-time alerts at defined stages and in case of any delays.
  • If you have any questions during the entire shipment process, you can contact them directly. Most online freight forwarders are available 24/7.

Tips for a Better Relationship with Freight Forwarding Partners

Whether you are starting with a new freighter or happy with your existing one, it is essential to maintain a good relationship with them to reap maximum benefits. Here are some of the tips you need to follow for smoother shipping and gaining results-

  • Find the best freight forwarder

The foremost thing is to choose the right company according to your requirements. If you need to send goods in bulk or shipments that require special approvals, ensure that the service provider you choose has in-depth knowledge of sending them. 

Whatever your requirements, make sure to choose a freight forwarder that can handle the goods. It is also important to evaluate whether this continues to be the case when working with the same freight forwarding company over the long term.

  • Set the right expectations with your freight forwarder

When you start working with a freight forwarder, take time to understand your requirements for shipment. This way, you will be able to do a better job setting the right expectations with them.

Also, inform the freight forwarder about how many shipments you need to send in a month, and ask for the documents required as per your products and the country/state. By bringing up your requirements early, you have the best chance of your shipment going smoothly.  

Outlining expectations, establishing the right responsibilities, and providing details about past, current, and future projects for both parties are vital to creating and sustaining a healthy working relationship.

  • Define your drivers

Every freight company has different drivers for different shipments. It is essential to tell your priorities so that they can assign the right one accordingly and create the best freight forwarding strategy as per your needs. 

  • Negotiate before-hand

Do not push or discuss pricing after finalising the deal; instead, discuss all the charges in advance, as discussing it later might ruin the relationship. Therefore, ask them clearly about potential extra fees such as taxes, customs charges, etc. Knowing all this information can help you make more informed decisions. 

  • Keep them informed

It is important to keep your freight provider informed about any changes in the shipment so they can plan accordingly. For example, if you send 10 parcels for shipment in a week but 12 might be sent in the upcoming week, inform them so they can plan and provide you with the services as per your requirements in a timely and cost-effective manner.

If both sides show transparency, set the right expectations, and troubleshoot together, you’ll have a much better experience. 

Weighing the Benefits and Drawbacks of Freight Forwarding Services

A lot of businesses wonder whether it is beneficial to work with a freight forwarding company. They are mostly hired by enterprises when they are growing at a rate that makes it challenging to manage the number of shipments or do not have the time or resources to develop their shipping system. 

Working with online freight forwarders provides many benefits, but along with that come a few disadvantages as well. So, let’s weigh the benefits and drawbacks of partnering with them. 

Advantages

  • Cost-effective
  • Timely delivery 
  • Deal with all the documentation required
  • Offer the convenience of one point of contact
  • They are usually international transport experts
  • Compliance with national and international rules

Disadvantages-

  • Entrustment issues
  • Data deficiency issues
  • Unfair pricing
  • Possible product loss

Overall, hiring an online freight forwarder can be beneficial for your business. You should choose a reputable platform like CargoX that assures you of the right pricing and guaranteed timely delivery.

Finding Competitive Shipping Rates

Here are the points you need to keep in mind if you want to get the best pricing for your shipments-

Use flat-rate shipping (if possible)

  • Calculate the right shipping fee by extracting the cost of material required to pack your items; labour, courier cost for collection and delivery, and import & export fee for international shipping
  • Choose the right-sized packaging
  • Use lightweight packaging material wherever possible.
  • Choose the appropriate mode of transportation
  • Consider the delivery speed and additional services
  • Stay updated on any changes in the shipping rates
  • Search for the most reputed and reasonable supplier
  • Always opt for third-party insurance.

Conclusion

Are you also looking to partner with the best online freight forwarders? If yes, then opt for the most reliable one, as shipping is the backbone of almost every business, specifically eCommerce. CargoX is an excellent platform that connects shippers and carriers by rendering an efficient and convenient digital solution for logistics purposes. 

This freight forwarder offers an array of land, air, and ocean freight solutions, including supply chain optimisation, logistics design, contract logistics, distribution, and road transport. So, if you already ship internationally or are thinking about entering international markets, then consider CargoX.

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