July 22, 2021

Tips on How to Start a Freight Forwarding Business

Miles Varghese
Miles Varghese
Helping independent freight forwarders/brokers better stay in-sync, collaborate, and improve operations with their shippers/clients. Co-founder & CEO @ Cargologik.com
start a freight forwarding business

The beginning stage to start a freight forwarding business is knowledge. Getting to know the role of digital freight forwarding and how to implement these strategies across all platforms in freight forwarding is paramount to the success of businesses in the supply chain. The idea behind hiring a freight forwarder is to streamline the processes within the supply chain and eliminate more time-consuming tasks, as described by Forbes. Identifying process agents, establishing a trust fund or funds to obtain a broker bond, and integrating record systems with global platforms allow those who aspire to be freight forwarders to become one. 

1. Know Who Your Process Agents Will Be for Each Stage of the Business

Knowing the process agents assigned to freight brokers is one of the very beginning stages of becoming a freight broker. The initial stages of how to start a freight forwarding business begin with applying and obtaining a USDOT number. A USDOT is required for anyone wanting to operate within the US. Upon obtaining this number, then one must apply for broker authority. These process agents assist freight brokers through this legal process at each stage. 

2. Establish the Trust Fund(s) Necessary to Get a Freight Broker Bond

In the US, to obtain a broker license and become an independent freight forwarder, one must meet the predetermined requirement fees. Establishing the trust fund(s) to get a freight broker bond to start a freight forwarding business is mandatory for initial costs. These funds protect carriers and shippers from issues that may arise during shipping. 

3. Double Down on Your Marketing Strategy

Another tip for those looking to start a freight forwarding business is to really fine-tune the desired marketing strategy. With e-commerce 3PL and other resources to monitor, finding the right plan for a new freight forwarding business can be easier. Locate shippers and carriers using existing databases to network while also providing modern and more technology-inclined processes like social media will make choosing your company a no-brainer. 

4. Integrate Your Systems of Record With Global Platforms

When working with digital freight and other freight means, integrating the current systems of record with global platforms will open a larger target area for those wanting to start a freight forwarding business. 

5. Take Advantage of Business Directories and Load Boards to Find More Networking Partners and Shipper-Customers

Additional methods of expanding your digital freight network are searching existing business directories. Another way of locating more network partners and customers is by monitoring load boards. By doing so, new freight professionals looking to start a freight forwarding business can generate new leads without the hassle or the cost. Finding free load boards can help with start-up expenses and keep long-term costs down. Do not forget the power of online lead generation as well, and the internet is a powerful tool. 

Be a Better Freight Broker WIth the Right Forwarding Platform in Use

The real key to start a freight forwarding business is as simple as one, two, three. The final step to becoming the freight forwarding expert all carriers and shippers want to work with means finding the right forwarding platform to use. Take advantage of those free resources, compare and contrast, but ultimately, consult experts and sign up for Cargologik today. 

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