How can a young freight forwarding company build its credibility through networking?

We remember all too well how difficult it is to get started in the freight forwarding industry. However, it really is possible to make things easier for yourself. There are, for example, freight forwarding networks for small businesses, which will teach you how to build relationships within the industry and allow you to get started straight away. Today, we’ll show you how to build credibility for a new freight forwarding company through these networks.

What are the benefits of working with a freight forwarding network for a small business?

As a novice freight forwarder, you don’t have to learn from your own mistakes. By joining a trusted network, you gain increased trust in your company. But that’s not the end of the benefits. You also gain:

Payment protection and security – dedicated financial programmes within the network protect your money from dishonest contractors.
Access to exclusive tools – you gain access to freight calculation systems (e.g. FreightViewer).
A global partner database – you can be sure that goods on the other side of the world will be collected by a verified customs agency.

These aren’t just promises from advertising brochures. A study by Soohyo Kim and Choyeon Kim from Sogang University in Seoul, entitled “Enhancing Logistics Performance through Increased Trust and Collaboration in Supply Chain Risk Management”, leaves no room for doubt on this matter.

The researchers have proven that cognitive trust – based on proven competence – opens the door to new, beneficial collaborations. And it is far more important than emotional trust. After all, when sending a shipment across the ocean, a client will choose someone they truly trust. Thanks to the network’s accreditation, you don’t have to spend years building that trust.

Which freight forwarding network is best for a small business to start with?

Good freight forwarding networks for a small business include WCAworld or FIATA. And how do you build relationships in the logistics industry through networks, and why do we recommend this approach so highly? See the graphic below:

Take another look at the graphic. You are a young freight forwarding company, so you are just starting out. You want to reach the end points: airlines, overseas agents, trusted shipowners and direct B2B clients.

You could slowly build a relationship with each of them individually – which would cost you years of work, hundreds of meetings and tens of thousands of emails – but you can make contact with all of them more quickly through a network.

It is no coincidence that logistics networks are at the centre of the diagram. It is on these networks that you can meet airline representatives, foreign agents, trusted shipowners and direct B2B clients.

How to build a freight forwarding company’s credibility through networks? A step-by-step guide

Discover now the process we went through at ADECON years ago, thanks to which we grew from a family business into a trusted global freight forwarder, transporting and storing even hazardous goods. With these tips, you’ll build a brand that’s recognised across the industry.

1. Understand the mechanism of credibility transfer

Before you start sending applications to international networks, realise that this isn’t just about paying a fee and sticking a nice logo on your website.

Joining a logistics network gives you access to global partners. You go from being an isolated, small business to becoming a member of a trusted community. Manufacturers immediately know that you are part of a secure ecosystem.

2. Prepare your company for rigorous verification

Before you become a member of the network, you will face a certain test. Organisations do not accept companies at random, as they protect existing members from dishonest contractors. Examiners will scrutinise your financial stability, work culture and turnover to date to ensure you are capable of holding your own in the market.

This is highlighted by Ceren Altuntaş Vural in her analysis Forwarding Agent Selection Throughout Global Freight Forwarder Networks: A Fuzzy TOPSIS Analysis. The researcher demonstrated that for global agencies, the priorities are mutual trust, your responsiveness and knowledge of the local market. Therefore, before submitting your application:

gain at least 2 years of operational experience,
build a secure financial cushion – also collect written references from several international partners,
obtain industry certifications – a customs agent licence or a recommendation from a national association will greatly facilitate the acceptance process.

3. Choose the right network for your stage of development

Don’t rush straight into the largest associations if you’ve only been operating for a year. Know your limits. If you’re a start-up, aim for programmes dedicated to new companies, such as the aforementioned WCAworld initiative, which accepts businesses after just 8 months of operation.

4. Be active and make wise use of the network’s resources

Simply paying the membership fee won’t generate revenue for you. Take an active part in the community.

Years of experience at ADECON have shown us that the majority of transport contracts are secured during prestigious annual live conferences (e.g. the FIATA World Congress). Be there.

5. Showcase your membership to clients

Feel free to boast about your membership of the network on your website, in email headers and in commercial offers. By communicating your membership of a group that guarantees payment protection, you relieve the shipper of stress. The conversation flows smoothly from the question “can you handle this shipment?” to “when do we load the container?”.

Frequently Asked Questions (FAQ)

Where can I find a freight forwarding network for a small business?

The best place to start is the official websites of global organisations and industry logistics portals. Keep an eye on publications on sites such as The STAT Trade Times.

Annual freight forwarding conferences are also an excellent source of contacts and offers, where network organisers build relationships, recruit promising companies and hold initial discussions with candidates.

How do I choose the right freight forwarding network for my small business?

Match the organisation’s entry requirements to your company’s experience. If you’ve been in business for less than two years, look for associations created specifically for logistics start-ups.

Always check the amount of the financial protection fund offered, which will safeguard your international payments. Also ensure that the network has a rigorous verification process, as this is the only way to guarantee the absolute reliability of its members.

Which companies offer freight forwarding networks dedicated to small businesses?

There are several associations on the market that facilitate the growth of smaller freight forwarding companies. These include, amongst others:

GAA NEO (Global Affinity Alliance NEO) – a sub-structure of WCAworld, dedicated to promising companies with at least 8 months’ operational experience.
FNC Group – an excellent option for smaller teams, requiring 2 years of documented experience and offering a robust protection package.
The Cooperative Logistics Network – a network for selected freight forwarders, which provides them with innovative software and helps them compete with larger companies.

Apply what we’ve described here to your own business, and you’ll quickly build your company’s credibility, even if it’s still new to the market. Do you have any further questions about networking in logistics? We’d be happy to answer them.And if you’re looking for a trusted logistics partner who can also help you grow, get in touch with us!

Bibliography:

Kim, S., & Kim, C. (2024). Enhancing Logistics Performance through Increased Trust and Collaboration in Supply Chain Risk Management. Systems, 12(4), 141. https://doi.org/10.3390/systems12040141
Vural, C. A. (n.d.). Forwarding Agent Selection Throughout Global Freight Forwarder Networks: A Fuzzy TOPSIS Analysis. Academia.edu. Retrieved from: https://www.academia.edu/10450484/Forwarding_Agent_Selection_Throughout_Global_Freight_Forwarder_Networks_A_Fuzzy_TOPSIS_Analysis

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