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Freight Forwarding Business Plan

OCT.26, 2023

What is a Business Plan for Freight Forwarding?

Do you want to start your freight forwarding business but don’t know where to begin? A freight forwarding business plan can help you. A freight forwarding business plan outlines a company’s goals, strategies, and financial projections. You can refer to our logistics business plan to delve deeper into the specifics.

A freight forwarding business helps you move your goods from point A to point B, using different ways of transport like planes, ships, trains, or trucks. A freight forwarding business is like a travel agent for your goods. It takes care of everything from booking the transport, clearing the customs, preparing the documents, insuring the goods, storing them, and delivering them to the final destination.

A good freight forwarding agency business plan will include the following sections:

• Executive summary
• Company overview and leadership
• Industry analysis
• Customer analysis
• Competitive analysis
• Sales and marketing plan
• Operations plan
• Financial plan
• Growth plan

Why Do You Need a Business Plan Sample for a Freight Forwarding Company?

A business plan sample can help you write your business plan faster and easier. A business plan sample like our freight broker business plan can help you to:

• Learn from the best practices and avoid the common mistakes of other freight-forwarding businesses
• Find out who your customers are and what they want from your services
• Discover how you can stand out from the competition and offer something unique and valuable
• Set realistic and measurable goals for your business and track your progress
• Plan your marketing strategy and budget to attract and retain customers
• Estimate how much money you need to start and run your business and how much profit you can make
• Get funding from investors or lenders if you need it

To help you get started, we have prepared a sample freight forwarding business plan bundle for you.

Executive Summary

The recently launched freight forwarder Ship First Express was started up in 2023 by long-time industry expert Matthew Sullivan. With headquarters in the Big Apple and storage facilities in LA, they use a worldwide network to give SMBs affordable and easy international delivery of goods by plane, ship, truck, along with customs paperwork, storage, and insurance.

Catering to booming sectors like online retail, medical and edibles, Ship First Express point of difference is providing a bespoke, adaptable, upfront and traceable experience. Ship First Express projects 20% annual revenue growth, from M in 2023 to .5M in 2028, by acquiring new clients, expanding services, enhancing its online presence, and forging strategic alliances.

To fuel further expansion, Ship First Express is looking to secure 0,000 in debt financing via a 5-year loan at 10% interest, to be repaid through steady cash flow. Their financials and credit profile show they can meet repayment obligations. With a commitment to customer service and worldwide connections, Ship First Express is on track to join the top players in freight forwarding.

Company Overview

Company Profile

Ship First Express is an international freight forwarding company headquartered in New York City. It was founded in 2023 by Matthew Sullivan, with over 15 years of experience. Ship First Express operates as a C-corporation and provides transportation and logistics services globally to small and medium-sized businesses (SMBs).

Ship First Express is a full-service freight forwarder offering air freight, ocean freight, road freight, rail freight, customs brokerage, cargo insurance, warehousing, distribution, and supply chain management. Key services include:

• Air freight booking and consolidations
• Ocean freight FCL and LCL
• Road freight FTL and LTL
• Customs clearance and documentation
• Cargo business of pickup and delivery
• Warehousing and inventory management
• International distribution and fulfillment
• Supply chain optimization

The company’s headquarters and main office are located in New York City. Additional offices are in Los Angeles, London, Shanghai, and Sao Paulo. Warehouses are in New York, Los Angeles, London, and Shanghai.

To be the leading global provider of customized freight forwarding and value-added logistics solutions to SMBs.

• Generate $1.2 million revenue by 2024
• Acquire 50 new clients by 2024
• Add rail freight and multimodal services by 2024
• Launch new website and app by 2024
• Establish a partnership with a global courier by 2024

Industry Analysis

The freight forwarding industry is a segment of the transportation and logistics industry. According to a report published by Grand View Research , here are some interesting stats regarding international freight forwarding business growth:

• Market size value in 2023 – USD 208.37 billion
• Revenue forecast in 2030 – USD 285.60 billion
• Growth rate – CAGR of 4.6% from 2023 to 2030
• Freight Forwarding Brokerages & Agencies Businesses in the US in 2023 – 82,188 (Source – IBISWorld )

Image Source – Grand View Research

The growth of the freight forwarding industry is driven by several factors, such as:

• Expanding international trade and cross-border e-commerce
• Globalization
• Infrastructure development
• Sustainability practices

Some of the current and future trends in the freight forwarding industry are:

• Digitalization and automation
• Advanced analytics and technologies (Blockchain, Internet of Things (IoT), cloud computing, and data analytics)
• Service diversification
• Industry consolidation (Mergers and acquisitions among large global forwarders)
• Customized services

Some of the key challenges for the freight forwarding industry are:

• Trade volatility
• Pricing pressures
• Complex customer requirements
• Regulatory compliance
• Recruitment and retention

Some of the opportunities and threats for the freight forwarding industry are:

• Geographic expansion
• Technology innovation
• Value-added services like consultancy, cargo insurance, and SCM.
• Cybersecurity risks
• New entrants

Some of the common regulations and laws that affect the freight forwarding industry are:

• IATA guidelines for air freight forwarding and documentation
• IMO regulations for ocean freight shipments and hazardous materials
• WCO standards for customs clearance, security, valuations
• National/regional industry-specific laws related to transportation, labor, contracts, and more.
• FIATA, IRU, GS1, CSCMP, and others maintained industry standards.

Customer Analysis

Ship First Express targets small and medium-sized businesses (SMBs) engaged in international trade that require freight forwarding services. It segments customers into four groups:

A. E-Commerce

• Online retailers and sellers who want fast, reliable, cost-effective shipping
• Prefer online booking, tracking, payment
• Price-sensitive, want discounts and promotions
• Pain points: customs, delays, damaged goods
• Designers, manufacturers, wholesalers, retailers of fashion products
• Need flexible, customized, high-quality shipping
• Prefer personal service, tailored solutions, transparent pricing
• Quality-conscious, want reputation and trust
• Pain points: inventory, seasonal fluctuations, fashion trends

C. Electronics

• Producers, suppliers, and retailers of electronic products
• Need secure, efficient, innovative shipping
• Prefer digital service, smart solutions, competitive pricing
• Technology-driven, requiring innovation and efficiency
• Pain points: security risks, regulations, obsolescence

D. Healthcare

• Manufacturers, distributors, providers of healthcare products/services
• Need safe, compliant, professional shipping
• Prefer dedicated service, specialized solutions, premium pricing
• Regulation-bound, requiring compliance and safety
• Pain points: quality control, temperature, ethical issues

Ship First Express estimates each segment’s size and potential based on various criteria, as highlighted in our drop shipping business plan . Some of them include:

• Number of SMBs
• Average annual revenue
• Percentage exporting/importing
• Average spending on freight forwarding

Based on these criteria, Ship First Express calculates the size and potential of each customer segment as follows:

Competitive Analysis

Ship First Express operates in the freight forwarding industry. It faces competition from large multinationals like DHL, UPS, and FedEx to local firms like ABC Logistics.

Key Competitors

• DHL – Global leader in logistics offering express delivery, freight forwarding, warehousing, supply chain management, and e-commerce solutions. Although it has a strong brand and a large global network, its high costs and complex structure are its main drawbacks.
• FedEx – Global transportation and logistics services provider, including delivery, freight, customs brokerage, and trade consulting. Known for reliability, speed, customer service, large fleet, and quality but heavily dependent on the US and vulnerable to fuel costs.
• UPS – Global parcel delivery and logistics provider with services like freight forwarding, contract logistics, and distribution. Although it has a strong market position, large scale, broad portfolio, and high customer satisfaction, the company experiences low margins and high capital expenditures.
• ABC Logistics – Local US freight forwarding logistics company focused on SMB customers across sectors. Air/ocean/road freight, customs clearance, warehousing, and insurance are offered. ABC has the advantage of being cost-effective and adaptable, but its reach is limited, and it lacks brand awareness.

Competitive Strategy

To differentiate itself, Ship First Express:

• Leverages agent network for seamless global service
• Focuses on niche segments with high demand
• Provides personalized solutions and transparent pricing
• Enhances online presence and forms strategic alliances

Competitive Advantage

Ship First Express specializes in fast, reliable, cost-effective solutions for SMBs in international trade. Its tailored approach, flexibility, transparency, and global agent network set it apart.

Freight Forwarding Marketing Plan

Key Marketing Goals:

• Increase brand awareness and recognition
• Acquire new customers and retain existing ones
• Increase market share and revenue
• Enhance customer satisfaction and loyalty

Marketing Mix:

Ship First Express’s marketing mix elements are:

• Product – Wide range of freight services plus value-adds like packaging and inventory management. Tailored solutions to meet customer needs.
• Price – Competitive rates negotiated with carriers/partners. Transparent pricing. Discounts and promotions.
• Place – Headquarters and warehouse in NY, branch office, and warehouse in LA. A global network of agent partners.
• Promotion – Online – website, social, email, ads. Offline – sales calls, events, print, radio, TV.

Key Marketing Tactics:

Ship First Express’s marketing tactics and activities for each marketing mix element are:

• Conduct market research, monitor trends, and create value-added services.
• Analyze costs, benchmark pricing, and adjust based on market dynamics.
• Evaluate agents, maintain coordination, and expand network reach.
• Business development plan for a freight forward across channels based on objectives and metrics.

Performance Evaluation:

Ship First Express measures and evaluates its marketing performance by using various tools and methods:

• Website analytics using Google Analytics
• Social media analytics using Facebook Insights and Twitter Analytics
• Email marketing analytics using Mailchimp
• Online advertising analytics using Google Ads
• Online directory analytics using Yelp
• Online reviews analytics using Trustpilot
• Online platforms analytics using Amazon Analytics
• Sales analytics using Salesforce
• Referrals analytics using ReferralCandy
• Events analytics using Eventbrite
• Print media analytics using flyers with QR codes

Operations Plan

Key Business Activities and Processes

Ship First Express has the following key business activities and processes:

• Sales – The sales team generates leads, contacts prospects, presents proposals, closes deals, and signs contracts to acquire new customers and retain existing ones. Sales are made through cold calls, referrals, events, and online platforms.
• Service – The operations team coordinates and manages the transportation and logistics of customer shipments via air, ocean, road freight, etc.
• Support – The customer service team answers queries, resolves issues, and handles customer complaints through phone, email, chat, etc.

Resources, Equipment, and Tools

• Human Resources – 10 employees, including sales, service, operations, and accounting staff.
• Physical Resources – Two office and warehouse facilities in New York and Los Angeles.
• Financial Resources – $500,000 in capital to fund operations.
• Technology Resources – Software systems for sales, service, support, accounting, and collaboration.

Organization and Management

• Matthew Sullivan, Founder and CEO – Sets vision and oversees operations with 15 years of industry experience. Holds a degree in international business.
• Susan Anderson, Sales Manager – Leads the sales team, acquires new customers, and retains existing ones. Has 10 years of sales and marketing experience with a business administration degree.
• David Lee, Service Manager – Manages transportation and logistics. Has 8 years of operations and logistics experience with a supply chain management degree.
• Lisa Chen, Support Manager – Provides customer service and technical support. Has 6 years of experience in these areas and an IT degree.
• Charles Davis, Accounting Manager – Oversees finances, including cash flow, budgets, and audits. Has 5 years of accounting experience with an accounting degree.

Financial Plan

The following chart shows Ship First Express’s financial projections for the next five years:

The assumptions behind Ship First Express’s financial projections are:

• 20% annual revenue growth projected over 5 years based on market potential
• $50,000 average revenue per customer assumed
• 50% cost of goods sold as a percentage of revenue
• 50% gross margin target
• $400,000 operating expenses in year 1, 10% annual increase
• Operating margins targeted to increase from 16.7% to 26.4% over 5 years
• $50,000 interest expense in year 1 based on $500,000 loan at 10% over 60 months
• 25% tax rate assumed
• Net margins targeted to increase from 9.4% to 18.9% over 5 years
• $500,000 debt financing obtained for working capital, marketing, equipment, warehouse, recruitment
• 5 year loan at 10% interest, $10,616 monthly installments
• Assets pledged as collateral

Get Expert Assistance for Your Freight Forwarding Business Plan

With over 15 years under our belt, the team at OGSCapital has honed the ability to develop focused business plans that enable companies to effectively communicate their one-of-a-kind value to prospective investors and partners. One of our specialties is conveying the competitive advantages of freight forwarders while mapping out their operations in an easy to understand way. The business plans we create help entrepreneurs secure financing and chart an actionable course for growth.

If you’d like to talk about how OGSCapital’s consultants can develop a business plan for a freight forwarding company, customized to your needs and goals, please reach out. We also invite you to view a sample of our work with a drop shipping business plan available on our website.

Frequently Asked Questions

Is freight forwarding a profitable business.

Yes, freight forwarding is profitable if you have the right skills, network, and market knowledge. Freight forwarders can earn commissions from arranging freight transport for their clients and providing other value-added services such as customs clearance, insurance, and warehousing.

How to start a freight forwarding business?

To start a freight forwarder business, you need to understand the logistics industry, the regulations of different countries, and your customers’ needs. You also need a network of logistics partners, a business plan, and a self-storage feasibility study . You can find some tips on creating a business plan for a freight forwarding company by referring to our freight forwarding business plan template shared above.

Is freight forwarding a good career?

Freight forwarding is a good career for those who enjoy working in a dynamic environment, dealing with different cultures, and solving problems. Freight forwarders can learn about international trade, logistics, and supply chain management and advance their career in the freight forwarding business.

How can I start a freight forwarding business in the USA?

To start a freight forwarding business in the USA, you need to get a license from the Federal Maritime Commission (FMC), a bond or insurance, and comply with the laws and regulations of the US agencies. You can find more information about how to set up a freight forwarding company in the USA by consulting an expert.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Business plans are similar to roadmaps: while it is possible to travel without one, you are more likely to become lost while establishing your freight forwarding company. Business plans enable you to plan ahead of time and ensure that you are heading in the right direction.

Market analysis, competitor analysis, marketing plan, operation plan, cash flow projections, and other details are common in business plans.

Even though creating a comprehensive business plan may appear time-consuming and exhausting, it is critical for the growth and success of your company.

Developing a business plan for your freight forwarding firm:

Market Research 

One of the first steps in developing a freight forwarding business plan is usually market research. Whether you are new to the logistics industry or an experienced freight forwarder, it is critical to devote adequate time to conducting an industry overview and assessing all of the challenges you will face.

Before you start your freight forwarding business, you must decide which niche market (or simply sector) you will focus on (air, sea, rail, road, customs brokerage, warehouse, etc.). Examine the competition in your area to see if there are any services that are currently lacking. Of course, you must ensure that there is sufficient demand for the services you choose to offer.

Furthermore, during this stage, or the competitor analysis stage, you should consider the differentiating factors that will set you apart from your competitors. The ultimate goal is usually to increase customer satisfaction because the majority of your profits come from repeat customers.

There are still many opportunities in the freight forwarding industry because many companies have not implemented advanced technologies such as real-time tracking in their daily operations.

Financial Analysis 

One of the most important phases is developing a financial plan to determine whether starting a freight forwarding company is profitable and economically feasible for you. A financial plan includes an estimate of the startup costs for a freight forwarder, such as office space rent, license fees, training costs, and employee salaries.

Finally, you will be able to determine whether there is sufficient incentive for you to start a freight forwarding company. The money you invest and the returns you will receive should be in a healthy balance.

Registration, License, and Insurance 

Before you begin your freight forwarding business, you must prepare several documents. The documents required to start your business may differ depending on the country; thus, you must conduct research or consult with a logistics expert to determine which documents you require.

Examples of the documents you may consider: 

• Certification of Corporation 
• Business License & Certification 
• Insurance Policy 
• Online Terms of Use 
• NVOCC Registration   
• Carrier Tariff Registration 
• Ocean Transportation Intermediary Bond 

Infrastructure & Staff Selection 

Infrastructure and personnel are the foundations of your freight forwarding business in logistics. Plan ahead of time to see if you can locate your office in a strategic location, and determine whether you need to outsource certain aspects of the freight forwarding process, such as warehouse and truck delivery.

Furthermore, hire employees who are eager to learn about and implement freight forwarding technology. The freight forwarding industry is undergoing digital transformation, and those who refuse to use freight forwarding technology, such as freight forwarding software, will be eliminated from competition.

Investing in the right facilities and professionals from the start will make a significant difference in the growth of your freight forwarding company.

Marketing Plan 

When you are just starting out in freight forwarding, marketing can be extremely beneficial in obtaining your first few customers. You don’t have to spend a lot of money to have a good time. If you don’t have a lot of money to start, you can always join shippers’ Facebook groups and post your offerings for free.

On the other hand, you can enlist the help of a marketing firm that specializes in logistics or freight forwarding. The specialists will advise you on what you need to do to increase business visibility and highlight your industry differentiators.

Software Solutions 

Before you begin operating your freight forwarding business, you may want to conduct some research on the most recent freight forwarding software solution on the market. Despite being a little later than the other industries, the freight forwarding industry is also undergoing digitalization.

Papers and Excel spreadsheets have traditionally been used in the freight forwarding process. However, with the development of all-in-one freight forwarding software, many of the previously manual tasks have been eliminated, resulting in significantly fewer inefficient operations.

Implementing freight forwarding software, such as GoFreight , from the start will maximize your efficiency, reduce costs, increase customer satisfaction, and gain a competitive edge. Feel free to schedule a free meeting with GoFreight experts to learn more about how GoFreight can help you achieve KPI targets and accelerate your business growth. 

Here is a free sample business plan for a freight forwarding company that you can look at.

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Freight Forwarding Business

Back to All Business Ideas

How to Start a Freight Forwarding Business

Written by: Natalie Fell

Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 14, 2022 Updated on March 13, 2024

Investment range

$32,100-$76,100

Revenue potential

$200,000-$400,000 p.a.

Time to build

Profit potential

$80,000-$120,000 p.a.

Industry trend

Ever wonder what goes into getting products from factory to customer? There are a ton of moving parts and freight forwarders play a key role, which is why the global freight forwarding industry expects steady growth for at least the next five years. 

Acting as intermediaries on behalf of the shipping company to provide storage, coordinate logistics, and negotiate contracts, US freight forwarding companies do nearly $160 billion in annual business. With your own freight forwarding business you could grab a share of that vast, growing market and make a great living. 

But before you rent out a warehouse, you’ll need to learn what it takes to successfully launch a business. Fortunately, this step-by-step guide contains the entrepreneurial tools and resources you need to get started in freight forwarding. 

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Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Before starting a freight forwarding business, it’s important to weigh the pros and cons. 

• Provide Value – Simplify logistics for customers
• Good Money – Charge premium rates for services
• Essential Service – Manage the supply chain for top companies
• Strict Regulations – Licenses and insurance are required
• Liability – Maintain responsibility for storing valuable shipments

Freight forwarding industry trends

Industry size and growth.

• Industry size and past growth – In 2022, The US freight forwarding brokerages and agencies market is worth $157 billion after growing at an annual rate of 3.7% since 2017.(( https://www.ibisworld.com/industry-statistics/market-size/freight-forwarding-brokerages-agencies-united-states/ ))
• Growth forecast – The global freight forwarding industry is expected to expand at an annual rate of more than 4% through 2027.(( https://www.mordorintelligence.com/industry-reports/freight-forwarding-market ))
• Number of businesses – In 2022, 106,871 freight forwarding brokerages and agencies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/freight-forwarding-brokerages-agencies-united-states/ ))
• Number of people employed – In 2022, US freight forwarding brokerages and agencies employ 422,220 people.(( https://www.ibisworld.com/industry-statistics/employment/freight-forwarding-brokerages-agencies-united-states/ ))

Trends and challenges

Trends within the freight forwarding industry include:

• The rise of artificial intelligence is simplifying freight forwarding. AI has been streamlining everything from tracking shipments to warehouse operations.
• Some freight forwarding companies are using blockchain technology to create contracts with carriers and secure payments.

Challenges within the freight forwarding industry include:

• Becoming a successful freight forwarder is all about having a robust network of carriers and service providers. Prepare to spend a lot of time finding the right people to connect with and nurturing relationships. 
• Trade regulations are constantly changing, making it challenging for freight forwarders to keep up with the latest rules. 

What kind of people work in freight forwarding?

• Gender – 45% of freight forwarders in the US are female, while 55% are male.(( https://www.zippia.com/freight-forwarder-jobs/demographics/ ))
• Average level of education – The average freight forwarder has obtained a bachelor’s degree.
• Average age – The average freight forwarder in the US is 44 years old.

How much does it cost to start a freight forwarding business?

Startup costs for a freight forwarding company range from $32,100 to $76,100. Your main costs will be leasing a warehouse and the purchase of quipment like forklifts. Costs will depend largely on the type of freight you specialize in.

Depending on the type of freight you work with, you’ll be required to obtain specific licenses and insurance, including what is known as a surety bond that serves as a financial guarantee to carriers and shippers. If you’re interested in taking a course on freight forwarding, Udemy offers some for under $100 that can be completed in a few hours.

You’ll need a handful of items to successfully launch your freight forwarding business, including:

• Freight forwarder’s license
• Surety Bond
• Office Equipment

How much can you earn from a freight forwarding business?

Pricing for freight forwarding services depends on a number of different factors and largely depends on the types of companies you serve. A company might charge the equivalent of a portion of cargo value, for example $20 for every $500 handled. Aim for a profit margin of around 40%. 

In your first year or two, you could forward $5 million worth of freight at $20 per every $500 worth of cargo, bringing in $200,000 in annual revenue. This would mean $80,000 in profit, assuming that 40% profit margin. As your company grows, you could handle $10 million worth of freight per year. At this stage, you’d hire additional staff, reducing your profit margin to around 30%. With annual revenue of $400,000, you’d make a tidy profit of $120,000.

What barriers to entry are there?

There are a few barriers to entry when it comes to starting a freight forwarding business. Your biggest challenges will be:

• Obtaining required permits, licenses, and insurance
• Building up a solid network of carriers and service providers

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Step 2: hone your idea.

Now that you know what’s involved in starting a freight forwarding business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research freight forwarders in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a freight forwarding company that includes packaging or assembly services.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as air freight or ocean freight.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

As a freight forwarder, you’ll be responsible for arranging shipments and storing goods for your customers. As a supply chain expert, you may also play a part in packaging, distribution, maintaining appropriate documentation, and consulting on logistics strategies.

How much should you charge for freight forwarding services?

Pricing your freight forwarding services is an extremely detailed process. Freight forwarding companies take several things into consideration when quoting, including the type of goods, shipping containers, weight, and volume of shipments. They also consider the work it takes to negotiate rates with carriers, completion of any compliance paperwork, and warehouse labor costs. Your pricing will greatly depend on the niche you serve. After factoring in operating costs, your profit margin should be around 40%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be manufacturers looking for supply chain experts to help move their goods at the lowest rates. You’ll want to find relevant businesses and managers on professional social media platforms like LinkedIn to generate leads. Attending trade shows within your niche is also a great way to find potential customers. 

Where? Choose your business premises

To run your freight forwarding business effectively, you’ll need to hire workers for various roles and rent out a warehouse. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “logistics” or “freight forwarding”, boosts SEO
• Name should allow for expansion, for ex: “Global Connect Logistics” over “Air Freight Express”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A concise summary outlining the core elements of the freight forwarding business plan, including its mission, goals, and key strategies.
• Business Overview: An overview of the freight forwarding business, highlighting its purpose, structure, and the specific needs it aims to address in the logistics industry.
• Product and Services: Clear description of the freight forwarding services offered, such as international shipping, customs clearance, and supply chain management.
• Market Analysis: An examination of the target market for the freight forwarding business, identifying key trends, customer needs, and potential growth opportunities in the logistics sector.
• Competitive Analysis: Evaluation of competitors in the freight forwarding industry, highlighting strengths, weaknesses, and strategies to differentiate the business in a competitive market.
• Sales and Marketing: Strategies for promoting and selling freight forwarding services, encompassing customer acquisition, advertising, and building strong industry relationships.
• Management Team: Introduction to the key individuals responsible for leading and managing the freight forwarding business, emphasizing their expertise and roles in ensuring success.
• Operations Plan: Detailed plans for the day-to-day operations of the freight forwarding business, covering logistics, technology, and processes to ensure efficient service delivery.
• Financial Plan: A comprehensive financial overview, including projections, budgets, and key financial indicators, to demonstrate the viability and sustainability of the freight forwarding business.
• Appendix: Supplementary materials, such as supporting documents, charts, and additional information that adds depth and credibility to the freight forwarding business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to freight forwarding businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your freight forwarding business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a freight forwarding business. 

Step 8: Apply for Licenses/Permits

Starting a freight forwarding business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your freight forwarding business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Linbis , Magaya , or Logitude to quote shipments, automate customs compliance workflows, and store documents.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your freight forwarding business, the marketing strategy should focus on highlighting your expertise in logistics, the reliability and efficiency of your services, and your ability to handle complex shipping needs. Emphasize your global network, your knowledge of customs and regulations, and the tailored solutions you provide to ensure smooth and timely deliveries. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey efficiency, global reach, and expertise in logistics. This includes your logo, website design, and marketing materials.
• Direct Outreach : Network with potential clients, such as manufacturers, exporters, and importers, to introduce your services. Attending industry events, trade shows, and business expos can be highly effective for building contacts.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a comprehensive website that details your services, the industries you serve, and case studies showcasing your capabilities. Optimize your site for search engines using keywords related to freight forwarding, logistics services, and international shipping.
• Social Media Engagement : Utilize platforms like LinkedIn for B2B networking and Facebook to share industry news, company updates, and insights into global logistics trends.

Content Marketing and Engagement

• Logistics Blog : Share informative content about industry trends, supply chain management, and best practices in freight forwarding. This positions your company as a knowledgeable leader in the field.
• Email Newsletters : Keep your clients and prospects informed about changes in shipping regulations, new services, and company news.
• Webinars and Online Workshops : Host educational webinars on topics like customs compliance, international trade, and logistics planning.

Experiential and In-Person Engagements

• Industry Conferences and Events : Participate in relevant conferences and trade shows to network with potential clients and stay updated on industry developments.
• Client Workshops : Offer workshops or training sessions for clients on topics like optimizing their supply chain or understanding international shipping processes.

Collaborations and Community

• Partnerships with Complementary Businesses : Collaborate with businesses in related sectors, such as customs brokers or insurance providers, to offer comprehensive solutions to clients.
• Community Involvement : Engage in community projects or sponsor local events to build brand awareness and goodwill.

Customer Relationship and Loyalty Programs

• Customized Service Packages : Develop tailored service packages for regular clients, enhancing customer satisfaction and retention.
• Client Feedback Initiatives : Regularly solicit and act on client feedback to improve your services and demonstrate commitment to customer satisfaction.

Promotions and Advertising

• Targeted B2B Advertising : Use digital advertising on platforms frequented by your target clientele, such as industry-specific online magazines and forums.
• Trade Publications and PR : Contribute articles to trade publications and engage in public relations activities to build your brand’s reputation in the industry.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your freight forwarding business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your freight forwarding business could be: 

• We make international logistics easy and effortless
• Reliable cargo solutions at competitive rates
• Premier freight forwarding for the nation’s top importers

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a freight forwarding business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in logistics for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in freight forwarding. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a freight forwarding business include:

• Freight Forwarding Agent – Receive shipments at the warehouse, prepares compliance documents
• Office Manager – Send quotes to customers, manage shipment schedules
• Marketing Lead – Run ad campaigns, generate leads

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

Owning your own freight forwarding company takes a lot of hard work and dedication, but it’s also crucial to economic growth. You could become a dedicated, reliable partner to your customers and make great money along the way. 

Now that you’re familiar with what it takes to launch a business, it’s time to get out there and make some logistical magic!

• Freight Forwarding Business FAQs

Freight forwarders can get clients through various ways, such as:

• Networking : Attending industry events, conferences, and exhibitions can help to connect with potential clients and build relationships.
• Referrals : Satisfied clients can recommend your services to others, leading to more business.
• Digital marketing : Utilizing social media, search engine optimization and email marketing can help to raise awareness of your services and attract potential clients.
• Partnering with other businesses : Collaborating with other logistics and transportation companies can lead to cross-selling opportunities and new clients.

Freight forwarding is an extremely profitable business venture. The key to success lies in strategic pricing, working within a lucrative niche, and having a robust network of carriers and supply chain experts.

Some ways to differentiate your freight forwarding business from competitors are offering specialized services, providing exceptional customer service, and utilizing technology. 

The risks associated with being a freight forwarder include liability for cargo damage or loss during transportation, legal and regulatory compliance issues, and fluctuating fuel prices and currency exchange rates.

To become a successful freight forwarder, some key steps to consider are:

• Gain relevant education and experience in logistics, transportation, and international trade.
• Establish strong relationships with carriers, customs brokers, and other logistics providers.
• Focus on providing exceptional customer service and timely communication.
• Invest in technology and automation to improve efficiency and provide better visibility into shipments.
• Stay up-to-date with industry trends and regulatory changes to maintain compliance and stay competitive.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Start Making Money!

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Business Plan Template for Freight Forwarders

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Looking to take your freight forwarding business to new heights? Look no further than ClickUp's Business Plan Template for Freight Forwarders! This industry-specific template is tailor-made to help you outline your strategic goals, financial projections, and operational plans with ease.

With ClickUp's Business Plan Template for Freight Forwarders, you can:

• Secure funding and attract potential clients with a comprehensive and professional business plan
• Effectively manage your operations in the competitive logistics and transportation industry
• Stay on track and achieve your business objectives with clear goals and actionable plans

Take your freight forwarding business to the next level and set yourself up for success with ClickUp's Business Plan Template for Freight Forwarders today!

Business Plan Template for Freight Forwarders Benefits

A business plan template for freight forwarders offers several benefits to help companies succeed in the logistics and transportation industry:

• Provides a comprehensive framework to outline strategic goals, operational plans, and financial projections
• Helps secure funding by demonstrating a clear vision, market analysis, and growth potential
• Attracts potential clients by showcasing industry expertise, services offered, and competitive advantages
• Guides effective management of operations, including logistics, supply chain, and customer service
• Enables regular review and adaptation of business strategies to stay competitive in a dynamic industry

Main Elements of Freight Forwarders Business Plan Template

When it comes to creating a comprehensive business plan for freight forwarders, ClickUp has got you covered with our Business Plan Template. Here are the main elements you'll find in this template:

• Custom Statuses: Keep track of the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Add specific details to your plan using custom fields such as Reference, Approved, and Section to provide clear documentation and organization.
• Custom Views: Utilize different views like Topics, Status, Timeline, Business Plan, and the Getting Started Guide to easily navigate and manage your plan in a way that suits your needs.
• Collaboration: Collaborate seamlessly with your team by assigning tasks, leaving comments, and attaching files to ensure everyone is aligned and working towards the same goals.
• Integration: Integrate with other tools like spreadsheets or project management software to import or export data and streamline your workflow.

How To Use Business Plan Template for Freight Forwarders

If you're a freight forwarder looking to create a comprehensive business plan, you can use the Business Plan Template in ClickUp to guide you through the process. Here are five steps to help you get started:

1. Define your mission and vision

Begin by clearly defining your mission and vision for your freight forwarding business. What are your core values? What sets you apart from your competitors? This will help you establish a strong foundation for your business plan.

Use the Docs feature in ClickUp to write out your mission and vision statement.

2. Analyze the market and competition

Conduct a thorough analysis of the freight forwarding market and identify your key competitors. Understand the market trends, customer preferences, and potential growth opportunities. This will help you position your business effectively and develop strategies to stand out from the competition.

Create tasks in ClickUp to research and gather information about the market and competitors.

3. Define your target market and services

Identify your target market - the specific industries or customers you want to serve. Determine the services you will offer, such as air freight, ocean freight, customs clearance, warehousing, or logistics management. Clearly define your unique selling proposition (USP) and how you will meet your customers' needs.

Use the custom fields feature in ClickUp to outline your target market segments and services.

4. Develop your marketing and sales strategy

Create a detailed marketing and sales strategy to attract and retain customers. Determine how you will promote your services, build brand awareness, and generate leads. Outline your pricing structure, sales channels, and customer acquisition tactics. This will help you create a roadmap for success in the competitive freight forwarding industry.

Utilize the Goals feature in ClickUp to set specific marketing and sales goals and track your progress.

5. Financial planning and projections

Develop a comprehensive financial plan for your freight forwarding business. Estimate your startup costs, operational expenses, and revenue projections. Consider factors such as staffing, equipment, insurance, and technology investments. Create a budget and cash flow forecast to ensure the financial sustainability of your business.

Use the Gantt chart feature in ClickUp to create a timeline for your financial planning and track key milestones.

By following these five steps and utilizing the Business Plan Template in ClickUp, you'll be well on your way to creating a solid business plan for your freight forwarding company.

Get Started with ClickUp’s Business Plan Template for Freight Forwarders

Freight forwarding companies can use the Business Plan Template for Freight Forwarders in ClickUp to streamline their planning process and ensure all key aspects of their business are covered.

Here's how to make the most of this template:

Start by clicking "Add Template" to sign up for ClickUp and add the template to your Workspace. Choose the appropriate Space or location where you want to apply this template.

Invite relevant team members or stakeholders to your Workspace to collaborate on the business plan.

Take advantage of the template's features to create a comprehensive business plan:

• Use the Topics View to organize and outline the different sections of your business plan, such as executive summary, market analysis, financial projections, and operational strategies.
• Assign tasks to team members and set statuses to track progress. Use the statuses: Complete, In Progress, Needs Revision, and To Do to indicate the status of each task.
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional context and track important information.
• Utilize the Status View to get an overview of the progress of each task and ensure everything is on track.
• The Timeline View will help you visualize the timeline of your business plan and set realistic deadlines.
• Use the Business Plan View to have a consolidated view of your entire plan, making it easy to review and make updates.
• The Getting Started Guide View will provide step-by-step instructions and guidance on how to effectively use the template.

By following these steps, freight forwarding companies can create a comprehensive and well-structured business plan that will help them secure funding, attract clients, and effectively manage their operations in the competitive logistics and transportation industry.

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News, tips and useful content for freight forwarders

Jan 23, 2019

Creating a business plan for freight forwarder

Opening a freight forwarding company is a bureaucratic process and involves following several steps. This is why, anyone who wishes to invest in this area, should think about creating a business plan and making sure all its bases have been covered beforehand. Only by doing so, it is possible to ensure the business won’t face any difficulties due to lack of planning.

This post intends to help entrepreneurs who are planning to open a freight forwarding company. After all, although this field might seem congested, there is always space for new businesses with an innovative mindset and willingness to stand out from the crowd.

Check out some practical steps to follow when creating a business plan for a freight forwarding business!

Creating a business plan for your freight forwarding business

Market research.

The first step to creating a business plan is to conduct some thorough market research. Whether you are completely new to the logistics area or have some background experience working in this segment, it is important to take some time to do an industry overview and analyze all the challenges you’ll need to overcome as a freight forwarder.

The freight forwarding industry offers several possibilities for entrepreneurs, so the first thing you should decide is what niche you’ll be investing in (air, sea, road, customs brokerage, integrated logistics, perishables, project cargo, etc). To do so, study the competition near you and try to specialize in something you realize like it’s lacking in your area at the moment – but don’t forget to make sure there are enough demands for this in the region you’ll be operating. Additionally, at this stage, you could also think about differentials that would set you apart from every other forwarder there.

Economic analysis

The second phase is when you will find out if opening a freight forwarding business is economically feasible for you. This step involves building a financial plan, which should include an estimate of the initial expenses to start operating as a freight forwarder, such as rent, the remodeling of the space and registration fees.

Besides, you should also consider your permanent expenses, like the salaries of your employees and monthly bills. To finish, think about the revenue you are likely to have in the first year operating. Then, you will be able to see if there is a healthy balance between what you can invest and what you’ll be getting in return.

Obtain proper registration, licensing and insurance

When it comes to freight forwarding, there is a number of documents you need to prepare before opening your business. Each country requires specific registration and licenses for entrepreneurs aiming to operate as a freight forwarder, therefore, it is important to consult with a logistics expert in your area to know exactly what documents you need and how to obtain each one.

Some examples of documents you should consider are:

• Certificate of Incorporation;
• Business License and Certification;
• Business Plan;
• Operating Agreement for LLCs;
• Insurance Policy;
• Consulting contract documents;
• Online Terms of Use;
• Online Privacy Policy Document;
• VAT registration;
• Federal tax identification number.

Choose a suitable infrastructure and hire the appropriate staff

In logistics, infrastructure and staff are two of the most valued things that customers consider when choosing a freight forwarder to take care of their demand. Therefore, if you wish to make an impact from the start, invest in the quality of your facilities and the expertise of your professionals.

Choose to have your office in a strategic location and, if it’s not viable to have your own warehouses/fleet of trucks, outsource this service to provide your customers with a complete range of logistics possibilities. On top of that, hire staff with strong know-how in the services you choose to specialize.

Invest in marketing to get your name out there

Marketing is always important, but when you are starting a business, you shouldn’t think twice about making this investment. Count on the assistance of an agency with specialized knowledge in logistics, such as LoGo – Logistics Marketing!  Their specialists will tell you exactly what to do in order to highlight your differentials in the market and make sure your business gets all the visibility it needs to start on the right foot!

Join a logistics network

Besides having the right infrastructure and professionals, another thing that customers really value is whether or not your company has reliable connections worldwide. After all, freight forwarding businesses are mostly b2b and you will need partners to represent your customer’s demands overseas.

For this reason, an important part of creating a business plan is to analyze the options of logistics networks available in the market, along with their membership fees and the advantages each one can provide to your business. Then, choose the most suitable one and start networking with the right people as soon as you open your business. You will see how this is an indirect marketing strategy since it can bring you many business opportunities.

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A Sample Freight Forwarding Business Plan Template

A freight forwarding company is a company that functions as an agent or intermediary between the company that makes the shipment and the final destination of the goods. The primary duty of freight forwarding companies is to plan and move the items to the destinations provided by the client company.

Please note that freight forwarding is a widespread method of international transportation leveraged for both corporate and personal purposes. Connecting with shipping companies, and understanding documentation and custom laws of various countries remain the primary duties of freight forwarders.

Available report shows that in 2023, the total market size of the freight forwarding market in the United States reached over 145 billion U.S. dollars. Until 2020, this market experienced a downward trend that was worsened by the coronavirus pandemic. The global Freight forwarding market size is projected to reach USD 207 Billion by 2026, from USD 170 Billion in 2019, at a CAGR of 2.8%.

Steps on How to Write a Freight Forwarding Business Plan

Executive summary.

Curling Beckley© Freight Forwarding Company, Inc. is an American-based and licensed freight forwarding company. Our head office will be located in the heart of Philadelphia, Pennsylvania. We will leverage established relationships with carriers, from air freighters and trucking companies to rail freighters and ocean liners, to effectively transport shippers’ goods.

We would analyze various bids and choose the one that best balances speed, cost, and reliability. Curling Beckley is the founder and CEO of Curling Beckley© Freight Forwarding Company, Inc.

Company Profile

A. our products and services.

Curling Beckley© Freight Forwarding Company, Inc. will be involved in;

• Offering expertise and advice to the shipper
• Booking freight space on the modes of transportation
• Packaging, warehousing, and distribution
• Offering insurance services
• Perform documentation and custom clearance
• Consolidation and deconsolidation
• Cargo insurance and customs compliance
• Inland transportation from source and/or to destination
• Ocean or air freight transportation.

Our services are designed to help people and businesses safely and professionally move their goods or properties. We will work as agents between the shipper and different modes of transport like air, ocean, rail, and land.

b. Nature of the Business

Our freight forwarding company will operate the business-to-consumer and business-to-business model.

c. The Industry

Curling Beckley© Freight Forwarding Company, Inc. will operate in the freight forwarding services industry.

d. Mission Statement

Our mission is to be at the forefront of our industry and to make sure we build a successful freight forwarding company that will operate in the United States of America and Canada; a company that will have some of the best freight forwarders and key professionals in the United States of America.

e. Vision Statement

Our vision of to be listed among the top ten freight forwarding companies in the whole of North America.

f. Our Tagline (Slogan)

Curling Beckley© Freight Forwarding Company, Inc. – Your Trusted Freight Forwarders!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Curling Beckley© Freight Forwarding Company, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our assets by limiting the liability to the resources of the business itself. The LLC will protect our CEOs’ assets from claims against the business, including lawsuits.

h. Our Organizational Structure

• Chief Operating Officer (Owner)
• Admin and HR Manager
• Operations and Logistics Manager
• Marketing and Sales Executive (Business Developer)
• Freight Forwarders
• Truck and Van Drivers
• Material Handlers/Yard Spotters/Forklifts Operators
• Customer Services Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

• Curling Beckley (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Denzel California (Board Member) 18 Percent Shares
• Kris Greene (Board Member) 10 Percent Shares
• Andy Zeus (Board Member) 10 Percent Shares
• Rosa Park (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for a freight forwarding company (thriving shipping sector)
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Extensive knowledge of documentation requirements, regulations, transportation costs, and banking practices.
• Large warehouse and storage facility
• Excellent customer testimonials.
• Partner with numerous logistics companies both nationally and internationally
• Access to reliable transport and logistics software.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established freight forwarding companies and also transport and logistics companies
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• A rise in shipping activities from within and outside the country will increase the demand for freight forwarding services
• Online market, new services, new technology, and of course the opening of new markets
• Increase in the movement of goods from one location to another with urban centers
• Increase in production activities and warehousing.

i. How Big is the Industry?

The freight forwarding industry is indeed a big industry and this can be supported by the fact that in 2023, the total market size of the freight forwarding market in the United States reached over 145 billion U.S. dollars.

ii. Is the Industry Growing or Declining?

The freight forwarding industry is growing. According to reports, the freight forwarding market is expected to grow at a CAGR of more than 4% within 2020-2025. Have it in mind that the increase in international trade volumes is a primary driver for the freight forwarding market.

iii. What are the Future Trends in the Industry?

The freight forwarding industry is changing, and players in the industry are improvising. No doubt, technology and climate change (people moving either from cooler to hotter regions or hotter to moderate regions) will change the landscape of the freight forwarding industry going forward.

iv. Are There Existing Niches in the Industry?

No, there is no existing niche idea when it comes to the freight forwarding business.

v. Can You Sell a Franchise of your Business in the Future?

Curling Beckley© Freight Forwarding Company, Inc. has plans to sell its franchise in the nearest future and we will target major cities with thriving freight forwarding markets in the United States of America.

• The arrival of new freight forwarding companies within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses and increasing prices of fuel amid low demand
• Economic uncertainty
• Liability problems
• The shipping industry could change their regulatory status and decide to enforce strict regulations that can strangulate new businesses.

i. Who are the Major Competitors?

• International Equipment Relocations
• Supply Chain Warehouses
• River Plate, Inc.
• UPS Supply Chain Solutions
• Shoreline Express Inc.
• DHL Supply Chain and Global Freight Forwarders
• Crown International Forwarder
• Kuehne + Nagel International AG
• Cargo International Logistics Inc
• Expeditors International
• BGI Worldwide Logistics
• Berkley Cargo Services
• American Export Lines
• B. Hunt Transport Services
• 4 Seas International Shipping, Inc.
• Old Dominion Freight Line
• National Freight Logistics
• Entourage Freight Solutions
• Express International Freight
• PHX Transportation Freight Corporation
• Approved Freight Forwarders.

ii. Is There a Franchise for Freight Forwarding Business?

Yes, there are franchise opportunities for freight forwarding business, they include;

• Pak Mail Centers of America, Inc. (Initial Investment – $152,000 – $180,000)
• Packaging Store (Total Initial Investment: $164,000 – $244,000)
• PACK & SEND (Initial Investment – $210,000)
• Navis Pack and Ship Centers (Total Cash Requirement: $100,000)
• Zippy Shell Freight forwarding (Initial Investment – $657,450 – $1,219,830)
• AIT Freight Systems (Initial Investment – $46,000)
• Craters & Freighters (Initial Investment: $88,600 – $140,000)
• Unishippers Global Logistics (Total Initial Investment: $50,00 – $75,000)
• 1-800-Packouts (Initial Investment – $69,450 – $234,000)
• Our Town America (Total Cash Investment: $50,000)

iii. Are There Policies, Regulations, or Zoning Laws Affecting the Freight Forwarding Business?

No, there are no county or state regulations or zoning laws affecting freight forwarding business, but players in this industry are expected to work with the existing regulations governing similar businesses in the county where their business is domiciled.

Please note that trucks and vans used for moving services are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so. So also, in the United States, a moving van or truck can be rented by someone without a commercial driver’s license (CDL) license if it has a gross vehicle weight rating (GVWR) of 26,000 pounds or less. Any truck or van with a rating of 26,001 pounds or more requires at least a Class B CDL.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years who have the finance to do business with us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those who we are ready to do business with.

iii. Income Level

There is no cap on the income level of those we will help facilitate the shipping of their goods or properties.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will help to help facilitate the shipping of their goods or properties.

v. Language

There is no restriction when it comes to the language spoken by the people we will help to facilitate the shipping of their goods or properties.

vi. Geographical Location

Anybody from any geographical location will be welcome to do business with our company.

vii. Lifestyle

Curling Beckley© Freight Forwarding Company, Inc. will not restrict any client from doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Deliberately Brand All Our Vans and Trucks.
• Tap Into Text Marketing.
• Make Use of Bill Boards.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with players in the manufacturing and import and export industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), and referral (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market and potential target market.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Curling Beckley© Freight Forwarding Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the production sector and the import and export industry, and freelancers to help refer clients to us.

Curling Beckley© Freight Forwarding Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need loading crates, lubricants (brake fluids, engine oil, and transmission oils et al), and spare parts means that Curling Beckley© Freight Forwarding Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining and processing items in our warehouse.

We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Curling Beckley© Freight Forwarding Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Curling Beckley© Freight Forwarding Company, Inc., we facilitate the shipping of goods from one location to another or to store goods for a short period hence the nature of our service offerings does not accommodate a return policy, but we guarantee our customers of safe delivery of their goods or properties under our care.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients and investors. We will work with an effective CRM software to be able to achieve this.

Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 35 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainer deals that will enable the firm to boost our freight forwarding service offerings and support revenue growth.

a. What Happens During a Typical Day at a Freight forwarding Business?

• The business is open for the day’s work
• Customer’s requests are taken and they are scheduled or attended to
• Tracking of freight, and inventory management
• Warehousing activities
• Marketing/website upkeep
• Administrative duties (documentation, paperwork, and follow-up calls)
• The business is closed for the day.

b. Production Process

There is no production process when it comes to the freight forwarding business. The service procedure of a freight forwarding business starts with a customer requesting the moving of his or her goods or properties from one location to another or from one storage facility, warehouse or business premises to another.

Once the request is gotten, it will be processed and suitable third-party service providers will be assigned to carry out the job. Please note freight forwarding companies are known to leverage established relationships with carriers, from air freighters and trucking companies to rail freighters and ocean liners, to effectively negotiate the ideal and choose the one that best balances speed, cost, and reliability.

d. The Supply Chain

Curling Beckley© Freight Forwarding Company, Inc. will rely on key players in the shipping, and import and export industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale supplies of crates, lubricants (brake fluids, engine oil, transmission oils et al), spare parts et al.

e. Sources of Income

Curling Beckley© Freight Forwarding Company, Inc. will make money from;

Financial Plan

A. amount needed to start your freight forwarding company.

Curling Beckley© Freight Forwarding Company, Inc. would need an estimate of $1.2 million to successfully set up our freight forwarding company in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• Other start-up expenses like; commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $100,000
• Start-up Inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $80,000
• Purchase of Trucks and Vans: $500,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Curling Beckley© Freight Forwarding Company, Inc. will not build a new facility for our freight forwarding company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Freight forwarding company?

• Gas and lubricants
• Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
• Salaries of employees
• Trucks and vans maintenance
• Marketing costs

e. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $68,000 Per Year
• Admin and HR Manager – $48,000 Per Year
• Transport and Logistics Manager $48,000 Per Year
• Marketing and Sales Executive (Business Developer) – $42,000 Per Year
• Accountant $38,000 Per Year
• Feight Forwarders – $36,800 Per Year
• Material Handlers/Forklift Operators – $28,000 Per Year
• Customer Service Officer (Receptionist) – $26,100 Per Year
• Security Guard -$24,000 Per Year

f. How Do You Get Funding to Start a Freight forwarding company?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source soft loans from your family members and friends.

8. Financial Projection

A. how much should you charge for your product/service.

This will surely depend on what you are importing, how you are importing it, and the space available. Carriers are known to charge by actual weight or dimensional weight (the volume in cubic meters multiplied by 167) – whichever is more.

Note that average air freight costs from China to the US are around $1.50 – $5.00 per kilogram for between 8 – 10 days of transit. But have it in mind that air freight prices fluctuate massively, depending on demand.

Meanwhile, average ocean freight costs from China to the US sit around $0.50 per kilogram for between 30 – 40 days of transit. Note that this price tends to be more stable than air. However, your freight forwarder should know the best channel for your products and the best price for your budget, but it’s advisable to do your own research too.

b. Sales Forecast?

• First Fiscal Year (FY1): $450,000
• Second Fiscal Year (FY2): $750,000
• Third Fiscal Year (FY3): $1.3 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $150,000
• Second Fiscal Year (FY2) (Profit After Tax): $350,000
• Third Fiscal Year (FY3) (Profit After Tax): $600,000

d. Profit Margin of a Freight forwarding company 

The ideal profit margin we hope to make at Curling Beckley© Freight Forwarding Company, Inc. will be between 16 and 20 percent on each job carried out irrespective of the distance covered.

Growth Plan

A. how do you intend to grow and expand .

Curling Beckley© Freight Forwarding Company, Inc. will grow our freight forwarding company by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Curling Beckley© Freight Forwarding Company, Inc. plans to expand to;

• Los Angeles, California
• Long Beach, Washington
• Newport, Rhode Island
• Chicago, Illinois
• Clearwater, Florida
• Portland, Maine
• Orange Beach, Alabama
• Ocracoke, North Carolina
• Block Island, Rhode Island
• Carmel-by-the-Sea, California.

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest and most thriving freight forwarding market in the United States.

The founder of Curling Beckley© Freight Forwarding Company, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international freight forwarding and shipping company that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.

The goal of combining two or more international freight forwarding companies is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities).

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10 Steps to Starting a Freight Forwarding Business

Around the world, myriad businesses need to get products from one place to another. This is where freight forwarding comes in. A freight forwarder is a company that specializes in arranging the transport of goods via air, sea, road, or rail.

If you're thinking of starting your own freight forwarding business, there are a few key steps you'll need to take to make it successful. In this blog post, we'll run through 10 essential steps for getting started in the freight forwarding industry. By following these tips, you'll be well on your way to setting up a thriving business!

Research the freight forwarding industry

Developing a plan for success in the freight forwarding industry requires careful research and strategic insight. To get started, you should begin by familiarizing yourself with key players in the industry, analyzing current market trends, and understanding the technology landscape. All of this information must then be distilled into a business plan that details specific products and services to be offered, which customers the company will target, how they intend to differentiate themselves from competitors, and detailed financial projections.

Choose a legal structure for your business

Choosing a legal structure for your business and registering it with the government is an important step when setting up a new company. There are many considerations to make and information to understand in order to choose the right type of entity. From sole proprietorships and partnerships to limited liability companies, corporations, and nonprofits, each type of entity has specific laws, regulations, tax implications, ownership requirements, and liability protections that must be explored before making a decision.

It is best to contact a professional accountant or lawyer who can help guide you toward the business structure best suited for your needs. After settling on the proper structure, register it with their state or other applicable governmental agency to gain certain privilege rights and official recognition. Taking this step will help ensure that your business complies with all relevant laws, as well as get properly taxed and insured.

Get the necessary licenses and permits

Running a freight forwarding business successfully requires having the appropriate licenses and permits. Each state, province, county, and municipality has its own set of rules regarding which licenses and permits are necessary to operate a freight forwarding business in a particular jurisdiction.

Depending on the scope of services provided, different types of special licenses and permits may be required, such as those related to international trade or hazardous cargo operations. With careful planning and research, it's possible to secure all the documents needed for starting up a successful freight forwarding company.

Find reliable partners in the shipping industry

The shipping industry is complex and critical to many businesses, and choosing reliable partners can be daunting. It pays to do your research before committing to any one supplier. Check out their reputation in the marketplace, evaluate their customer service record and consider their experience, overall commitment to quality service, safety record, pricing structure, availability of discounts, and payment terms - these are all essential factors that must be considered when selecting partners in the shipping industry such as trucking companies, warehouses, and ports.

Working with a reliable partner ensures that your business runs smoothly and seamlessly - allowing you to focus on growing your operations instead of worrying about hurdles along the way. Spend some time vetting potential suppliers before you make a final decision – the time will be worth it!

Invest in software that will help you manage your shipments and quotes

Investing in the right software for managing your shipments and quotes can pay off big time. Automated systems for tracking orders, invoices, and other documentation save you valuable time so that you can focus on other areas of your business.

The right shipping management system for your business will be tailored to your specific needs, provide secure financial tracking, and grant you the visibility required to measure performance over time. It can also help create more accurate estimates so that you remain competitive.

Develop customer service policies

To maintain positive relationships with customers, it is essential to develop clear customer service policies. This should include outlining what services are provided, setting a timeline for deliveries, and responding promptly to customer inquiries.

Market your services to potential clients

Trying to market your services to potential clients is an effective way of getting noticed in today's competitive market. Having a great product isn't enough; you must be proactive in promoting yourself and reaching out to your target audience. You can do this by concentrating on areas that your ideal clients often frequent, such as social media channels, event marketing, search engine optimization (SEO), and pay-per-click (PPC) advertising.

Once you have found the right venue for pitching your services, create content that speaks directly to them and make sure it clearly outlines the value proposition you are offering. As long as it's clear and concise, you can significantly increase the chances of securing business with potential clients.

Monitor your competition

It’s important to stay up-to-date on the competition in your area. Regularly monitor competitors’ pricing and services to ensure that you are providing the best value for customers.

Focus on quality

With any business venture, it is essential to focus on quality to succeed. Ensure that all goods are shipped safely and securely and that customer service is always top-notch to build trust with customers and ensure repeat business.

Keep an eye on how far you've come

Tracking your progress is essential to ensure that you are meeting targets and achieving success. Develop reporting systems and analyze data regularly to identify areas where you can make improvements and adjust plans accordingly.

So, there you have it— everything you need to get started in the freight forwarding industry. With careful planning and execution, you can launch a successful business that provides an important service to clients all over the world.

But It's not all about coming up with the product or service. You also have to think about financing the whole business! There are a lot of options out there for loans, but you have to be careful to know if a loan company is legitimate . It can be easy to get in over your head with debt, so always remember to do your research before taking out any loans.

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How to Build a Profitable Freight Forwarding Business

What’s in the Article: 

• What shippers expect from freight forwarders 
• How transparency in rates can help freight forwarders  
• Why End to End visibility is a key deciding factor for shippers  
• How the strength of the logistics network impacts business

In a world where the customer is the king and the opportunities available for the customers are abundant, it would be prudent to know what customers expect and tailor your offerings to suit their requirements. Similarly, freight forwarders must understand what the shippers are looking for and use available technology to enhance their services. 

In 2022, the global freight forwarding market was 169 billion euros. This trend is on an upward rise until 2025 and is expected to increase by over 22% to 207 billion euros during these five years.

Being able to carve out a small part of this massive chunk would be the goal for any SME freight forwarder. 

What do shippers expect from a freight forwarder?

A good starting point to identify the key aspects would be to understand why customers choose freight forwarders.

As per the logistics trends and insights, 44% of customers who use freight forwarding services say that they value the trade expertise of the provider or the low rates they are given. Another 18% prefer the ease and time-saving that exists when booking freight within the industry. 

Being non-asset-based, the freight forwarding sector can potentially face high rivalry from other players. Funding funneled towards technical advancements and innovations that use machine learning or AI makes the industry more competitive. With lower barriers to enter the market, the new equation envisages multiple players fighting for a share in this business and dropping the profit percentages to build a lucrative model. 

This blog explores the top 3 things that a freight forwarder should know about his customer to maintain and build a valuable business relationship. The base for any profitable business is the association that freight forwarders can keep with their shippers. This also becomes the only feasible approach to differentiate oneself in an aggressive market and retain customers. 

The three exhaustive and broad categories can be classified as:-

Transparency in rates

• End-to-end visibility
• Strength of the logistics network

Ultimately, this customer-forward strategy will result in increased customer success and upward sales trends. 

Customers are keen on analyzing where they spend money the most or where cost minimization is possible. Keeping with the global trends, shippers will feel more privileged if they find transparency while interacting with freight forwarders. 

The relationship between a forwarder and a shipper needs to be built on trust. Shippers will gravitate towards those forwarders who go out of their way to help shippers navigate the challenging logistical frontiers. 

Providing accurate quotes by taking advantage of the quote management and the rate management systems is key. The benefit will be double-fold – shippers get the transparency they are looking for and forwarders can provide instant quotes without losing time. 

With a systematized rate management tool, additional fees or any charges for delays and cancellations can be called out individually. This helps customers track which aspect of their freight cost needs to be watched. If there are any extra rates for non-standardized freight, this can be singled out in the quotation, so shippers can pack their cargo better. 

Additionally, by providing periodic reports and trend analyses to the shippers, freight forwarders can stabilize their relationship as dependable logistics partners. These reports can range from a history of rates for a set route to shipping schedule changes. All the insights regarding the customer’s shipping behavior ultimately will have a corresponding impact on rates that can be forecast in advance with the right data sets. 

End-to-end visibility 

While transparency is a key differentiator, visibility is equally important. Knowing where their shipment is stuck or when it is expected to arrive are the most common questions a shipper will ask. 

Customers might require re-scheduling services, or they might even want to know the various schedules available before they plot their shipment plan. All these answers and more can be provided by freight forwarders through track-and-trace software.

With port congestion and delayed turn-around times, shippers would demand to know how long it takes for a package to reach so that they plan. As a freight forwarder, it is important to provide immediate responses to these questions to the shippers. 

Additionally, having all the rates and schedules from all carriers on a single platform provides further visibility for the customers. 

They might also need support in terms of the documentation required for freight movement. Freight forwarders should be able to provide visibility on the paperwork that they help shippers with and keep documentation standards consistent and up to date. 

Strength of the logistics network 

Customer satisfaction can be achieved when providing a wide range of services. Apart from the obvious transparency and visibility requirements, it is also important to provide industry knowledge and insights. Expertise that shippers look for includes global regulations, market trends, future of the industry, best routes, shipping restrictions, packing requirements, etc. 

Solving simple problems that shippers might have with on-point advice makes the difference. The network that a freight forwarder is associated with speaks abundantly in today’s aggressive market. 

Customers or shippers would want to side with freight forwarders who have a large network of carriers that can support them. The benefits that freight forwarders can pass onto their customers because of the relationships that they have built in the industry will retain a customer. 

The Bottom-line

The flexibility and scalability of digital offerings provided by freight forwarders make the difference.

Forwarders should also be able to understand the feasible solutions at hand and help customers with their holistic decision-making process.

Every task can be performed either by a machine or manually - by guiding shippers to choose the right fit and optimizing the available resources, forwarders can establish their presence in the market. Hence, customizing automated forwarding techniques is key for personal relationships to be built with the customers.

The value add comes when a freight forwarder can also provide market insights along with traditional freight forwarding services. In a market where customers are spoilt for choice, they prefer choosing freight forwarders who can build custom-based services and troubleshoot their queries all the way. 

As a logistics tech provider, Freightify assists freight forwarders with automated solutions that enhance their service delivery. Using the customer portal, forwarders can build a unique sales channel that offers end-to-end support to their customers. The Freightify solution includes various dashboards, round-the-clock communication, real-time quotes, online bookings, and even internal performance tracking. 

1. What are the available digital opportunities that freight forwarders can take benefit from?

Freight forwarders can digitize their processes by using rate management systems and quote management systems. They can also implement the track and trace software as well as online document storage sources. Other technological advancements for freight forwarders include freight brokerage software and automation-based tools. A detailed listing of this year’s best logistics startups that provide digital solutions for freight forwarders can be found here . 

2. What is the CAGR at which the freight forwarding market is expected to grow this decade?

The freight forwarding market is expected to register a Compound Annual Growth Rate (CAGR) of more than 4% during the forecast period. This rate includes the impact of Covid-19 and the future business possibilities in the global market. Further, the fastest-growing market is the Asia Pacific region. 

3. What causes the freight spot market to be dynamic?

Apart from regular market factors like demand and supply, economic stability, or seasonality that affect the spot rate, the logistics industry is impacted by other factors including government norms and political events. The cost of labor, fuel and the vessel’s capacity also drives the price. Freightify has explored and analyzed the factors driving the spot market in this blog . 

4. What type of customers can a freight forwarder provide services to?

The freight forwarders’ main tasks are to advise on freight costs, plan the appropriate route for a cargo movement, reserve and book the best shipment schedule, help with insurance and documentation, and guide shippers through various government regulations and socio-political situations. Freight forwarders can provide these services to all customers irrespective of the mode of transport, type of cargo, or the size of the business.

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Freight Forwarding Business Plan

• Business Plans
• 15 Dec, 2017

The Challenges of Writing a Successful Freight Forwarding Business Plan

Joorney Business Plans Writers have extensive experience working with freight forwarding companies and understand the challenges of writing a successful business plan to support visa applications or raise capital from investors. The U.S. transportation sector has seen increased annual output as a result of industrial, retail, and trade activity increases which have spiked the demand for freight forwarders, shipping agents, and customs brokerages. According to  IBISWorld ,  over the five years to 2017, the number of industry operators increased at an annualized rate of 3.5% to 80,350 companies in the U.S. alone. Many of the freight forwarding clients for whom we write business plans already have established businesses in countries that are trading partners of the U.S. and are looking to expand their business and increase profitability.

Joorney Business Plans products are tailored to the specific needs of each client and honor the unique characteristics of each forwarder’s operations such as transportation methods, payment options, distance and destinations, cargo weight and volume, types of the commodity being shipped, and more. Our extensive experience in dealing with all types of freight forwarding companies, as well as our experience in writing for different types of audiences such as the United States Citizenship and Immigration Services ( USCIS ) and institutionalized or individual investors, helps us streamline the process of writing a business plan. When drafting a freight forwarding business plan, there are several issues to address:

Complicated Network

Freight forwarding companies often specialize in imports and exports from specific counties. Oftentimes, these companies have a network of affiliate companies, agents, and local offices for local delivery or pickup in other countries. Additionally, freight forwarding companies often rely on several partners for the multiple modes of transportation needed to ship freight to their destination.

Accountability and Accounting

A freight forwarder arranges the transportation and storage of freight on behalf of their customers and uses carriers to transport the freight. Unlike brokers who do not take possession of the freight, freight forwarders take charge of the cargo and are responsible for insuring it. Freight forwarders must apply to the Federal Motor Carrier Safety Administration ( FMCSA ), the industry operating authority, as a freight forwarder in interstate or foreign commerce known as  Form OP-1 (FF) . The freight forwarder then issues bills of lading to shippers and is responsible for the loss of or damage to the goods.

Freight forwarders take charge of the cargo and are responsible for the loss of or damage to the goods

For a freight forwarder, revenue is recognized on a  gross basis . Unlike brokers who recognize as revenue either a commission which is a fixed percentage of the freight handled (in terms of volume handled) or a pre-determined cost plus margin mark-up to facilitate the client’s business, freight forwarders report both the cost of goods and sales.

Joorney Business Plans has created many financial projections for freight forwarders and understands the specifics pertaining to this business. Using its comprehensive experience obtained from writing business plans for numerous clients from Freight Forwarding Industry, Joorney Business Plans is able to increase the accuracy of its financial projections, adding real value to business plans.

Estimating Expenses

Forwarders incur many costs including transportation, warehousing, port charges, insurance, handling, documentation, and other legal fees. New operators in the industry might need help estimating expenses for their business. Joorney Business Plans uses market statistics to project the expenses that fall within the industry’s averages for the specific areas and present the clients with the best estimates.

Market and Industry Analysis

A complete  market and industry analysis is the cornerstone of a successful business plan. When writing a freight forwarding business plan, it is of utmost importance to explain how your business model corresponds with today’s market.

Increasingly, freight forwarding companies heavily depend on the choice of the specific niche to operate in. As manufacturers and distribution companies become more inclined to partner with multiple niche logistics providers, maintaining expertise in specific verticals, operating regions, technology offerings, or service capabilities becomes essential for freight forwarders.

More often than not, our clients have experience dealing with  specific commodities such as livestock, temperature-sensitive perishable goods, hazardous materials, and fragile items;  transportation modes  such as air, water, rail, road, and off-road transport; geographic  locations and routes ; types of cargo such as container cargo, liquid, dry, and breakbulk, ro-ro; and/or  size of cargo  such as less-than-truckload, partial truckload, full-truckload, oversized load. Based on their experience and taking into account market insights, our clients create strategies to grow sales in these specific niches and need help to elaborate and support their strategy with solid data.

Joorney Business Plans has access to in-depth content from  IBISWorld , the most comprehensive collection of industry market research and industry risk ratings and  Statista , statistics, and studies from more than 18,000 sources. We use data from this and other comparable sources to create an overall view of the freight forwarding industry’s current state and operating conditions. This allows us to frame the rest of the information provided in the business plan around these findings, further supporting feasibility  with data.

Maintaining expertise in a specific niche becomes essential for freight forwarders

The Company’s Writers include an in-depth look at the transportation market, trading trends, potential market size, competition, and forecasts in all freight forwarding business plans and help the clients transform their ideas into compelling business propositions supported by real-life data.

Human Resources linked to the Strategy

The success of logistics operators depends decisively on the quality and qualifications of their employees. This prerequisite will not decrease but increase in the future. A successful business plan needs to provide information about the freight forwarding company’s team and how the strategy will be implemented through the efforts of the company’s employees. Many of our clients already have management teams in place that include successful individuals with extensive experience and impressive curriculums. In these cases, the biggest challenge for the  Business Plan Writer  is to align the existing management team toward a common set of goals and to secure that the connection between the company’s human resources and the company’s strategy remains strong and apparent throughout the entire business plan.

Joorney Business Plans takes great care in developing employee plans, describing the duties of each employee in detail, and linking the proposed individuals’ knowledge and experience to their designated roles.

When writing a business plan  for a freight forwarding company, it is important to demonstrate the value that the company will bring to its customers. Differentiating the service and identifying a specific market niche in which the company will operate are two requirements that determine whether the business will be viable in the long run.

When drafting a business plan  to support applications with investor immigration,  bank and SBA loans , and  investors , each freight forwarding company should address the accounting principles that need to be honored when projecting the financial performance of the company.

The business plan needs to provide a detailed strategy that is linked to the company’s employees, a comprehensive market analysis that describes the state of the industry and competition and estimate the demand and the size of the market that the company plans to address. Demonstrating the strengths of the company and the feasibility of its strategy are of utmost importance when writing any business plan.

Using its extensive experience in the freight forwarding industry, Joorney Business Plans combines the most recent and data supported market analysis, comprehensive competition analysis, marketing and strategy plans tied to the human resources of the client, and viable and realistic financial projections to create successful business plans.

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Freight Forwarding Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Global Freight Forwarding Market Trends and Companies. the Market is Segmented by Mode of Transport (air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding), Customer Type (B2C, B2B), Application (industrial and Manufacturing, Retail, Healthcare, Oil and Gas, Food and Beverages, and Other Applications), and Geography (North America (US, Canada, Mexico), Europe (Spain, Germany, France, UK, Italy, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, South Africa, Morocco, GCC, Rest of LAMEA)). the Market Size and Forecasts are Provided in Terms of Values (USD) for all the Above Segments.

• Freight Forwarding Market Size

Need a report that reflects how COVID-19 has impacted this market and its growth?

Freight Forwarding Market Analysis

The Freight Forwarding Market size is estimated at USD 176.02 billion in 2024, and is expected to reach USD 215.81 billion by 2029, growing at a CAGR of 4.16% during the forecast period (2024-2029).

• The market is driven by the huge trade volumes occurring across different regions. Furthermore, the resumption of internal air freight has propelled the market growth.
• The influx of black swan events in 2022 underscored the importance of flexible and resilient supply chains for the freight forwarding industry. These unanticipated events can have a massively disruptive impact on supply chains. Supply chains have been repeatedly tested in recent years, from the ongoing effects of the COVID-19 pandemic to the Suez Canal obstruction and the war in Ukraine. Staffing shortages, capacity issues, inflation, and demand peaks were also challenges for the freight market. Supply chains are facing more diverse and unpredictable challenges and issues than ever before. The year 2023 will be no different, and the need for domestic and international freight forwarders to be resilient and prepared for anything has never been greater.
• Agility, flexibility, and visibility, all of which are often aided by digitalization, are essential for weathering a storm. Freight forwarders can improve efficiency with the right technology and the ability to collect and analyze data. They are also better positioned to capitalize on opportunities that arise outside of times of disruption. With geopolitical tensions and rising inflation, 2023 is widely expected to be a year of economic slowdown. According to the International Monetary Fund (IMF), global economic growth will slow from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023. Meanwhile, the World Trade Organization recently revised its global trade growth forecast for 2023 to 1.0%, down from 3.4% previously. This loss of momentum in many markets will have a significant impact on the customers of freight forwarders.
• In addition to the resumption of freighter schedules, more airline passenger capacity is returning to the market. In 2023, international air travel is expected to return to pre-pandemic levels. While rates are still higher than pre-pandemic levels, they are still low. Rates are expected to fall in the first quarter of 2023 unless demand increases. Demand is still low, with no signs of a peak-season surge, as inventories and sales are down due to weak consumer demand. This pattern is expected to continue into early 2023. Trade restrictions involving China, the United States, Russia, Ukraine, and Europe will suffocate and disrupt global supply chains even further. Suppliers are looking for alternative sourcing locations other than China, Southeast Asia, and South Asia.
• Logistics managers are informing clients that the ocean freight market is correcting itself faster than expected. The transition from a supply chain that struggled to keep up with unprecedented pandemic demand to a weak demand environment and a freight market that is now oversupplied with both ships and containers highlights the risk of a prolonged global economic downturn. To combat inflation, central banks around the world are raising interest rates. One goal of central banks, including the Federal Reserve, is to reduce demand, which is lowering supply chain prices, which were at record highs and were a significant contributor to inflation. However, monetary policy is treading water because a supply-demand rebalancing can backfire.
• Freight Forwarding Market Trends

Growth in Cross-Border and Sea Trade Driving the Market

As multiple shocks weigh on the global economy, global trade is expected to lose momentum in the second half of 2022 and remain subdued in 2023. WTO economists now forecast a 3.5% growth in global merchandise trade volumes in 2022, up from 3.0% in April 2022. However, they predict a 1.0% increase in 2023, a significant decrease from the previous estimate of 3.4%. Import demand is expected to soften as growth in major economies slows for a variety of reasons. High energy prices caused by the Russia-Ukraine conflict will reduce household spending and raise manufacturing costs in Europe. Monetary policy tightening in the United States will have an impact on interest-sensitive spending in areas such as housing, automobiles, and fixed investment.

Canada's merchandise imports increased by 3.9% in February 2022, following a 7.5% decline in January 2022. Meanwhile, exports increased by 2.8% in February 2022, owing primarily to increased exports of energy products. As a result, Canada's global merchandise trade surplus fell from USD 3.1 billion in January to USD 2.7 billion in February. Imports of basic and industrial chemicals, plastics, and rubber products increased 5.6% in February, owing in part to record-high imports of fertilizers, pesticides, and other chemical products (+18.4%). A slew of recent events has had an impact on this industry, including lower Chinese output, new Russian fertilizer export quotas, and the Ukraine conflict. These occurrences raise concerns about the availability and cost of these products, resulting in a typical movement for Canadian fertilizer imports.

For those working in the container shipping industry, 2022 was a profitable year. The end of the pandemic is expected to make the shipping scenario more stable than it has been in the previous two years. The volume of international container exports increased by around 2-3% in 2022. This is due not only to last year's backlogs but also to the maritime shipping sector's slow recovery. Furthermore, port congestion is expected to normalise in the coming months around the world. However, this was heavily dependent on the pandemic, as another COVID-19 outbreak could worsen the situation.

Increasing Air Freight to Reduce Time Propelling the Market Growth

The air freight industry is currently dealing with several issues, including grounded planes, route reductions, and a drop in demand. Some multinational air freight companies are reporting a drop in demand compared to the pandemic period. The peak season for e-commerce has already begun, with less than two months until the start of the holiday season. However, despite the time of year, the air freight sector is experiencing a drop in consumer demand, as opposed to the previous two years' burgeoning demand for goods. Simply put, air freight companies anticipate a subdued fourth quarter of 2022 due to several factors.

Customer needs are fueling a growing trend toward omnichannel techniques. Airlines are recognising the need to expand their operations beyond traditional airport-to-airport routes, and airlines and other stakeholders are already recognizing the benefits of providing end-to-end assistance. As this trend resumes, agreements between airlines and shippers are likely to prosper. Air shipment will most likely adopt an omnichannel strategy in the future, making it easier to compete for limited cargo capacity and reasonable pricing. In addition to the opportunities for air cargo, there are additional challenges, with the significant concession feigning recruitment crises for the business on both freight and passenger positions, as it is for various sectors.

Freight Forwarding Industry Overview

The freight forwarding market is fragmented with a mix of global, regional, and local players. Small- and medium-sized local players still serve the market with small fleets and storage spaces. However, the top 20 players dominate the market, accounting for more than 50% of the total market. Leading players in the market include DHL Global Forwarding, Kuehne + Nagel International AG, DB Schenker, DSV, Expeditors International, and many more. As the freight forwarding market is growing steadily and there exists abundant opportunity, the players need to embrace technologies, become more digitized, and increase the scale and efficiency of their operations. Having a strong network spanning the globe is important for companies. International investors are increasingly interested in mergers and acquisitions in the ASEAN logistics market. Global logistics companies have been expanding in the ASEAN region because of increased commerce and trade activities.

Freight Forwarding Market Leaders

Kuehne + Nagel International AG

DB Schenker

Bollore Logistics

DHL Global Forwarding

Nippon Express Co., Ltd.

*Disclaimer: Major Players sorted in no particular order

Freight Forwarding Market News

June 2023: Kuehne+Nagel, a global logistics company, signed an agreement to acquire Morgan Cargo, a leading South African, UK, and Kenyan freight forwarder specializing in the transport and handling of perishable goods. The acquisition strengthens the company's perishables logistics service offering while improving connectivity for customers to and from South Africa, the UK, and Kenya, which includes state-of-the-art cold chain facilities.

April 2023: DHL Global Forwarding signed an MoU with Turkish Cargo, to extend its operations to SMARTIST, a cargo facility of Turkish Cargo at the Istanbul airport. This agreement enhances both the company's operation efficiencies and further boosts Istanbul to emerge as a logistics hub for the world.

Freight Forwarding Market Report - Table of Contents

1. INTRODUCTION

1.1 Study Assumptions

1.2 Scope of the Study

2. RESEARCH METHODOLOGY

2.1 Analysis Method

2.2 Research Phases

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS DYNAMICS

4.1 Current Market Scenario

4.2 Market Overview

4.3 Market Dynamics

4.3.1 Drivers

4.3.1.1 Increasing Demand From E-commerce Sales

4.3.2 Restraints

4.3.2.1 Increasing Fuel Costs

4.3.3 Opportunities

4.3.3.1 Digitalizing the Logistics Industry

4.4 Value Chain / Supply Chain Analysis

4.5 Porter's Five Forces Analysis

4.5.1 Bargaining Power of Suppliers

4.5.2 Bargaining Power of Buyers/Consumers

4.5.3 Threat of New Entrants

4.5.4 Threat of Substitute Products

4.5.5 Intensity of Competitive Rivalry

4.6 Insights on Technological Advancements in Freight Forwarding

4.7 Overview of Global Freight Forwarding Market

4.8 Digitalisation of Freight Forwarding Market

4.9 Pricing Analysis and Revenue analysis of Freight Forwarding Market

4.10 Regional insights onFreight Forwarding Market

4.11 Impact of COVID-19 on the market

5. MARKET SEGMENTATION

5.1 By Mode Of Transport

5.1.1 Air Freight Forwarding

5.1.2 Ocean Freight Forwarding

5.1.3 Road Freight Forwarding

5.1.4 Rail Freight Forwarding

5.2 By Customer Type

5.3 By Application

5.3.1 Industrial And Manufacturing

5.3.2 Retail

5.3.3 Healthcare

5.3.4 Oil And Gas

5.3.5 Food And Beverages

5.3.6 Other Applications

5.4 By Geography

5.4.1 North America

5.4.1.1 United States

5.4.1.2 Canada

5.4.1.3 Mexico

5.4.2 Europe

5.4.2.1 Germany

5.4.2.2 France

5.4.2.3 United Kingdom

5.4.2.4 Rest of Europe

5.4.3 Asia-Pacific

5.4.3.1 China

5.4.3.2 Japan

5.4.3.3 South Korea

5.4.3.4 India

5.4.3.5 Rest of Asia-Pacific

5.4.4 LAMEA

5.4.4.1 Brazil

5.4.4.2 South Africa

5.4.4.3 GCC

5.4.4.4 Rest of LAMEA

6. COMPETITIVE LANDSCAPE

6.1 Overview

6.2 Company Profiles

6.2.1 Kuehne + Nagel International AG

6.2.2 DB Schenker

6.2.3 Bollore Logistics

6.2.4 DHL Global Forwarding

6.2.5 Nippon Express Co., Ltd.

6.2.6 Dsv Global Transports and Logistics

6.2.7 The Maersk Group

6.2.8 C.H. Robinson

6.2.9 Panalpina

6.2.10 United Parcel Service

6.2.11 FedEx Corp.

6.2.12 Walmart Group

6.2.13 MGF (Manitoulin Global Forwarding)

6.2.14 Hellmann Worldwide Logistics

6.2.15 Expeditors International

6.2.16 Dachser

6.2.17 Imerco

6.2.18 Sinotrans India Private Limited

6.2.19 CEVA Logistics

6.2.20 Uber Freight LLC*

• *List Not Exhaustive

7. FUTURE OF THE MARKET

8. APPENDIX

Freight Forwarding Industry Segmentation

The coordination and shipment of goods from one location to another via single or multiple carriers via air, sea, rail, or highway is known as freight forwarding. Freight forwarding principles are based on the efficient and cost-effective transfer of goods that are kept in good condition throughout their journey. A complete background analysis of the Freight Forwarding Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

The freight forwarding market is segmented by mode of transport (air freight forwarding, ocean freight forwarding, road freight forwarding, rail freight forwarding), customer type (B2C, B2B), application (industrial and manufacturing, retail, healthcare, oil and gas, food and beverages, and other applications), and geography (North America (US, Canada, Mexico), Europe (Spain, Germany, France, UK, Italy, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, South Africa, Morocco, GCC, Rest of LAMEA)). 

The report offers market size and forecast values (USD) for all the above segments.

Freight Forwarding Market Research Faqs

How big is the freight forwarding market.

The Freight Forwarding Market size is expected to reach USD 176.02 billion in 2024 and grow at a CAGR of 4.16% to reach USD 215.81 billion by 2029.

What is the current Freight Forwarding Market size?

In 2024, the Freight Forwarding Market size is expected to reach USD 176.02 billion.

Who are the key players in Freight Forwarding Market?

Kuehne + Nagel International AG, DB Schenker, Bollore Logistics, DHL Global Forwarding and Nippon Express Co., Ltd. are the major companies operating in the Freight Forwarding Market.

Which is the fastest growing region in Freight Forwarding Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

Which region has the biggest share in Freight Forwarding Market?

In 2024, the North America accounts for the largest market share in Freight Forwarding Market.

What years does this Freight Forwarding Market cover, and what was the market size in 2023?

In 2023, the Freight Forwarding Market size was estimated at USD 168.99 billion. The report covers the Freight Forwarding Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Freight Forwarding Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

How is the Freight Forwarding Market Segmented?

The Freight Forwarding Market is Segmented by a) Transport: Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding b) Customer Type: Business to Consumer (B2C), Business to Business (B2B) c) Application: Industrial and Manufacturing, Retail, Healthcare, Oil and Gas, Food and Beverages, and Other Applications

What are the key trends in the Freight Forwarding Market?

The key trends in the Freight Forwarding Market are a) Adoption of digital tools for logistics management, tracking, and data analysis b) Focus on eco-friendly practices and reducing the environmental impact of freight forwarding c) Providing real-time tracking and transparency throughout the shipping process

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Freight Forwarding Industry Report

The global freight forwarding market is experiencing significant growth, driven by the expansion of international trade and the increasing complexity of global supply chains. As businesses continue to extend their operations beyond domestic borders, the demand for efficient, reliable, and cost-effective freight forwarding services has surged, further fueled by the rise of e-commerce. The market, segmented by mode of transport including road, maritime, rail, and air, sees road transport dominating due to its accessibility and cost-efficiency for short to medium-distance shipments, while air transport is expected to witness the fastest growth due to its speed and efficiency in handling high-value and time-sensitive goods. Catering to both business-to-business (B2B) and business-to-consumer (B2C) customer types, with B2B dominating due to intricate supply chain networks. the market is seeing key trends such as the increasing integration of technology and an emphasis on sustainability driving growth, particularly in the B2B segment. Conversely, the B2C segment is witnessing significant growth. Key players, including global freight forwarding companies, are focusing on acquisitions, technology integration, and expanding their global networks to stay competitive. Mordor Intelligence™ Industry Reports offer a comprehensive analysis including market share, size, revenue growth rate, and a forecast outlook, available as a free report PDF download.

Freight Forwarding Market Report Snapshots

• Freight Forwarding Market Share
• Freight Forwarding Companies

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How To Write a Business Plan for Freight Forwarder in 9 Steps: Checklist

By alex ryzhkov, resources on freight forwarder.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you considering starting a freight forwarding business and need a roadmap to success? Look no further! In this blog post, we will guide you through the essential steps to write a comprehensive business plan for a freight forwarder. But first, let's take a look at some eye-opening statistics about the industry.

The freight forwarding industry in the US is booming, with a market size of over $70 billion in 2020 and an average annual growth rate of 3.8%. With globalization on the rise, the demand for efficient and cost-effective logistics services is skyrocketing. As a freight forwarder, you have a unique opportunity to tap into this growing market and carve out a successful business for yourself.

Here's a handy checklist to get you started on writing an effective business plan for your freight forwarding venture:

• Conduct market research
• Identify your target market and customer needs
• Analyze your competition
• Define your unique value proposition
• Conduct a SWOT analysis
• Determine your business structure and legal requirements
• Develop a pricing strategy
• Create a marketing and sales plan
• Determine the financial feasibility of your business

By following these steps, you'll be well-prepared to launch your freight forwarding business and position yourself as a leader in the industry. Ready to take the plunge? Let's get started!

Conduct Market Research

Conducting market research is an essential step in creating a successful business plan for a freight forwarder. It provides valuable insights into the current market conditions, trends, and customer preferences. By thoroughly understanding the market, you can identify potential opportunities and challenges, enabling you to develop a business strategy that aligns with the needs of your target market.

When conducting market research for a freight forwarder, consider the following:

• Industry Analysis: Research the freight forwarding industry to understand its size, growth rate, and key players. Analyze the latest industry reports, trade publications, and market trends to grasp the current state of the industry.
• Market Segmentation: Divide the market into segments based on factors such as geography, industry, and customer type. Identify the segments that align with your business objectives and evaluate their potential for growth and profitability.
• Customer Needs and Preferences: Determine the specific needs and preferences of your target customers. This includes understanding their logistical requirements, pain points, and expectations from a freight forwarder.
• Market Demand: Evaluate the demand for freight forwarding services in your target market. Assess factors such as import and export volumes, existing freight forwarders' market share, and the growth potential of specific industries.
• Utilize online resources such as industry websites, forums, and social media platforms to gather information and insights about the freight forwarding industry.
• Engage with potential customers, industry experts, and existing freight forwarders to gain a deeper understanding of the market dynamics and customer expectations.
• Consider conducting surveys or interviews to collect firsthand feedback from potential customers regarding their preferences and pain points in the freight forwarding process.

Identify Target Market And Customer Needs

Identifying your target market and understanding their needs is crucial for the success of your freight forwarding business. By doing thorough research, you will be able to tailor your services to meet the specific requirements of your customers and differentiate yourself from competitors. Here are some important steps to follow:

Start by conducting comprehensive market research to gain insights into the freight forwarding industry. This will help you understand the current trends, challenges, and opportunities in the market. Look for data on freight volumes, trade routes, and customer preferences to identify potential target markets.

Once you have a broad understanding of the market, narrow down your focus and define your ideal customers. Consider factors such as the size of the companies you want to target, their industries, and their specific logistics needs. For example, you may decide to focus on small businesses in the e-commerce sector that require fast and cost-effective shipping solutions.

Next, analyze the needs and pain points of your target customers. Consider factors such as on-time delivery, customs clearance expertise, tracking capabilities, and customer service support. This information will help you tailor your services and value proposition to address their specific requirements and differentiate yourself from competitors.

Research emerging industries:

• Identify emerging industries that have a high demand for efficient freight forwarding services.
• Stay updated on industry trends to provide targeted solutions to customers in these sectors.

Attend industry events and trade shows:

• Network with potential customers and gain insights into their logistics challenges and requirements.
• Participate in industry events to showcase your expertise and build credibility in the market.

By identifying your target market and understanding their needs, you can develop a focused business strategy that caters to their requirements. This will not only attract customers but also help you build long-term relationships and establish a strong reputation in the freight forwarding industry.

Analyze Competition

When starting a freight forwarder business, one of the crucial steps is to analyze the competition in the market. Understanding your competitors' strengths, weaknesses, and strategies can help you position your business effectively and identify opportunities for differentiation. Here are some key aspects to consider when analyzing your competition:

• Identify your direct competitors: Research and compile a list of freight forwarder companies that offer similar services in your target market. Look for companies that have a strong presence and reputation.
• Assess their service offerings: Analyze the range of services your competitors provide. Look for any unique or specialized services they offer that differentiate them in the market.
• Evaluate pricing strategies: Study the pricing structures of your competitors. Compare their rates and fees to understand how they position themselves in terms of pricing. This will help you determine how competitive your pricing strategy needs to be.
• Examine customer reviews and feedback: Look for customer reviews and feedback about your competitors. Pay attention to the strengths and weaknesses highlighted by customers to gain insights into areas where you can surpass the competition.
• Research market trends and innovations: Stay up-to-date with the latest industry trends and innovations. Understand how your competitors are adapting to these changes and assess the potential impact on your own business.

Tips for analyzing competition:

• Visit competitors' websites and study their online presence to gauge their brand positioning and marketing efforts.
• Attend industry conferences or trade shows to network with professionals in the freight forwarding industry and gather information about your competitors.
• Consider conducting mystery shopping to experience firsthand the services of your competitors and identify any areas where you can excel.
• Regularly monitor industry publications and online forums to stay informed about the latest news and developments in the freight forwarding sector.

By thoroughly analyzing your competition, you can identify gaps in the market and develop strategies to position your freight forwarding business for success. Use the insights gained from this analysis to differentiate your business and provide unique value to your target market.

Define The Unique Value Proposition

Defining the unique value proposition is a crucial step in writing a business plan for a freight forwarder. The unique value proposition is what sets your freight forwarding business apart from the competition and communicates the value you provide to your customers. It is important to clearly define your unique value proposition to attract and retain customers in a competitive market.

When defining your unique value proposition, consider the following:

• Identify your target market's pain points: Understand the challenges and pain points faced by your target market, such as the need for streamlined logistics, cost-efficient shipping solutions, or reliable customs clearance. Your unique value proposition should address these pain points directly.
• Highlight your key differentiators: Determine what sets your freight forwarding business apart from competitors. It could be your extensive network of carriers, personalized customer service, innovative technology solutions, or expertise in specific industries or trade routes. Emphasize these unique features in your value proposition.
• Focus on the benefits: Clearly articulate the benefits customers will gain by choosing your freight forwarding services. Will they save time? Reduce costs? Improve reliability? Communicate the specific benefits they can expect to receive, which will make your value proposition more compelling.

Tips for Defining Your Unique Value Proposition:

• Research your competitors to identify gaps in the market that you can fill with your value proposition.
• Consider conducting customer surveys or interviews to gather insights into their needs and expectations.
• Use language that is clear, concise, and easy to understand when communicating your value proposition.
• Periodically review and refine your unique value proposition as market dynamics and customer needs may change over time.

By defining a strong and compelling unique value proposition, you will differentiate your freight forwarding business and attract customers who recognize the value you offer. This will pave the way for future success in the competitive freight forwarding industry.

Conduct A SWOT Analysis

A SWOT analysis is a critical step in developing a business plan for a freight forwarder. It allows you to assess the internal strengths and weaknesses of your business as well as the external opportunities and threats in the market. This analysis helps you identify areas of improvement, capitalize on market trends, and mitigate risks. Here are the key components of a SWOT analysis:

• Strengths: Identify the internal factors that give your freight forwarding business a competitive advantage. This could include a strong network of carriers, expertise in customs regulations, efficient operations, or excellent customer service. List down all the strengths that differentiate your business from others in the market.
• Weaknesses: Recognize the internal aspects that may hinder your business's growth or pose challenges. These could be factors such as limited financial resources, lack of technology integration, inexperienced staff, or absence of key partnerships. Be honest in assessing your weaknesses to address them effectively.
• Opportunities: Analyze the external factors that present potential opportunities for your freight forwarding business. These could be emerging markets, changes in trade policies, technological advancements, or gaps in the market that you can fulfill. Identifying opportunities can help you strategize and align your business to capitalize on them.
• Threats: Evaluate the external challenges or threats that could impact your business's success. These could include fierce competition, economic fluctuations, regulatory changes, or disruptive technologies. By acknowledging potential threats, you can proactively plan measures to mitigate their impact on your business.

Tips for Conducting a SWOT Analysis:

• Involve key stakeholders in the SWOT analysis process to gain different perspectives and insights.
• Gather data and conduct market research to have a comprehensive understanding of the industry and market trends.
• Be objective and unbiased in evaluating your business's strengths, weaknesses, opportunities, and threats.
• Consider seeking external expertise or consulting professionals to validate and enhance your SWOT analysis.
• Regularly review and update your SWOT analysis to stay responsive to changes in the industry and market dynamics.

A SWOT analysis provides a holistic view of your freight forwarding business and helps you make informed decisions in your business plan. It serves as a foundation for developing strategies, setting goals, and addressing potential challenges, ultimately increasing the chances of success in the competitive freight forwarding industry.

Determine The Business Structure And Legal Requirements

When starting a freight forwarding business, it is essential to determine the proper business structure and understand the legal requirements involved. Choosing the right structure will not only impact how the company is organized but also affect its liability, taxes, and compliance with regulations.

• Begin by researching different business structures such as sole proprietorship, partnership, limited liability company (LLC), or corporation.
• Understand the advantages and disadvantages of each structure to determine which one suits your business goals and offers the most favorable legal and tax implications.
• Based on your research, choose the most suitable business structure for your freight forwarding business.
• Consider factors such as personal liability, management control, tax obligations, and ease of obtaining financing.
• Consult with a legal professional or business advisor to ensure you make an informed decision.
• Once you have decided on the business structure, you must register your freight forwarding business with the appropriate government agencies.
• Obtain the necessary licenses and permits required for operating a freight forwarding business in your jurisdiction.
• Comply with any local, state, and federal regulations pertaining to freight forwarding, transportation, customs, and trade.
• Freight forwarding involves various risks, including loss, damage, or theft of goods, as well as liability for errors or delays in transportation.
• Secure appropriate insurance coverage to protect your business from potential financial losses and liabilities.
• Consult with an insurance agent specializing in transportation and logistics to determine the specific insurance policies required for your freight forwarding business.
• Seek advice from a qualified attorney or business consultant who specializes in freight forwarding or transportation to ensure compliance with all legal requirements.
• Stay updated on changes in regulations and industry standards to adapt your business structure and legal compliance accordingly.
• Maintain proper record-keeping of all legal documents, licenses, permits, and insurance policies to facilitate easy access and compliance audits.

Develop A Pricing Strategy

Developing a solid pricing strategy is crucial for the success of your freight forwarding business. It involves determining the right price for your services that aligns with market trends, customer expectations, and your business goals. Here are some important considerations to keep in mind:

1. Understand the Market: Conduct in-depth market research to gain insights into the pricing dynamics of the freight forwarding industry. Analyze the prices charged by your competitors and identify any gaps or opportunities that you can leverage. This will help you position your pricing strategy effectively.

2. Consider Costs: Calculate all the costs associated with providing your freight forwarding services. This includes transportation expenses, customs fees, storage costs, documentation charges, and any additional overhead expenses. Ensure that your pricing covers these costs while still remaining competitive.

3. Determine Value-Added Services: Identify any value-added services or unique offerings that you can provide to differentiate yourself from competitors. These could be specialized services like real-time tracking, expedited shipping, or personalized customer support. Adjust your pricing accordingly to reflect the added value you provide.

4. Value-Based Pricing: Consider implementing a value-based pricing strategy, where you align your prices with the perceived value your customers receive. This approach takes into account factors such as the importance of timely deliveries, reliability, and customer satisfaction, rather than solely focusing on costs.

5. Price Differentiation: Assess your target market and segment it based on different customer groups or industries. Consider offering tiered pricing options based on the volume of shipments or specific services required. This will allow you to cater to a wider range of customers while maximizing your overall profitability.

Pro Tips for Developing a Pricing Strategy:

• Regularly review and adjust your pricing strategy to stay competitive and adapt to market changes.
• Consider offering discounts or promotional offers to attract new clients or incentivize repeat business.
• Clearly communicate your pricing structure to customers, ensuring transparency and minimizing any potential misunderstandings.
• Regularly assess your costs and make adjustments to your pricing strategy if necessary to maintain profitability.

By developing a well-thought-out pricing strategy, you can ensure that your freight forwarding business remains competitive, profitable, and attractive to potential customers.

Create A Marketing And Sales Plan

Once you have identified your target market and customer needs, it’s crucial to develop a strong marketing and sales plan to promote your freight forwarding services and attract clients. Here are some important steps to consider:

• Develop a clear value proposition: Clearly define what sets your freight forwarding business apart from competitors. Highlight your unique selling points, such as specialized expertise in certain industries or more competitive pricing.
• Create a comprehensive marketing strategy: Determine the most effective channels to reach your target market, such as online advertising, industry publications, trade shows, or targeted direct mail campaigns. Develop a budget for marketing activities and allocate resources accordingly.
• Establish an online presence: In today’s digital age, having a strong online presence is essential for any business. Make sure you have a professional website that showcases your services, expertise, and contact information. Consider creating social media profiles and utilizing email marketing to engage with potential clients.
• Build relationships with industry partners: Collaborate with other logistics providers, carriers, and customs brokers to tap into their networks and gain referrals. Attend industry conferences and events to connect with potential partners and stay updated on industry trends.
• Offer personalized solutions: Tailor your services to meet the specific needs of individual clients. Provide value-added services, such as order tracking or expedited shipping options, to differentiate yourself from competitors.
• Provide exceptional customer service: Strong customer service can be a key differentiator in the freight forwarding industry. Ensure your team is responsive, knowledgeable, and proactive in addressing client inquiries and concerns.
• Track and analyze your marketing efforts: Monitor the success of your marketing campaigns and adjust your strategies accordingly. Utilize analytics tools to measure website traffic, email open rates, and social media engagement to gauge the effectiveness of your marketing efforts.

By creating a comprehensive marketing and sales plan, you can effectively promote your freight forwarding services and attract a steady stream of clients. Remember to continually refine your strategies based on new market trends and customer feedback to stay ahead in this competitive industry.

Determine The Financial Feasibility Of The Business

Before starting a freight forwarding business, it is crucial to determine its financial feasibility. This involves assessing the potential revenue, costs, and profitability of the venture. Understanding the financial aspects will help you make informed decisions and ensure the long-term sustainability of your business.

To determine the financial feasibility, you need to consider several key factors.

• Revenue Projection: Estimate the amount of revenue you expect to generate from your freight forwarding services. Consider factors such as market demand, pricing strategy, and customer acquisition.
• Cost Analysis: Identify all the costs associated with running the business, including personnel expenses, office space, technology infrastructure, transportation costs, and legal and regulatory compliance. This will help you understand the expenses involved and determine if your business can generate sufficient profits.
• Profitability Assessment: Analyze the potential profit margins of your business. Determine the gross profit margin by subtracting the cost of goods sold from the revenue and expressing it as a percentage. Look for opportunities to optimize costs and improve profitability.
• Break-Even Analysis: Calculate the point at which your business will start generating profits. This is known as the break-even point, where your total revenue equals your total expenses. Understanding the break-even point will help you determine the minimum level of revenue required to cover costs.
• Financial Projections: Prepare financial projections for the first few years of operation. This includes creating income statements, balance sheets, and cash flow statements. These projections will help you assess the financial health of your business and make financial decisions accordingly.

Tips for Determining Financial Feasibility:

• Research industry benchmarks and compare your projected financials to similar businesses in the freight forwarding industry.
• Consider any potential risks or challenges that may impact your financial feasibility, such as changing regulations or fluctuating fuel prices.
• Regularly review and update your financial projections to ensure they align with the actual performance of your business.
• Seek professional advice from an accountant or financial consultant to ensure accuracy and thoroughness in your financial analysis.

By determining the financial feasibility of your freight forwarding business, you will have a clear understanding of the potential costs and profitability. This knowledge will guide your decision-making and help you set realistic goals for your business's financial success.

Writing a business plan for a freight forwarder involves several important steps that are crucial for the success of the venture. By conducting thorough market research, identifying target markets and customer needs, analyzing competition, and defining a unique value proposition, you can position your freight forwarding business for success.

Performing a SWOT analysis, determining the business structure and legal requirements, developing a pricing strategy, creating a marketing and sales plan, and assessing the financial feasibility are all key components of a comprehensive business plan for a freight forwarder.

With the increasing demand for efficient and cost-effective logistics in global trade, the commission-based model is a prevalent and profitable business model for freight forwarders in the US. By following the checklist of steps outlined in this blog post, you can ensure that your business plan is thorough, strategic, and aligned with the needs of the market and customers.

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The ultimate guide to freight forwarding operations

The World Bank projects that the global freight forwarding market will reach USD 2.4 trillion by 2027, reflecting a significant rise in international trade. For efficient freight forwarding operations, however, you need to navigate strict regulations and optimise logistics processes and communication. 

Types of freight operations 

Understanding the different types of freight operations is essential for businesses choosing the most suitable transportation mode for their needs.

The six stages of a freight forwarding process 

Freight forwarding services involve these six critical stages:

1. Pre-carriage

This stage involves initial communication between the shipper and the freight forwarder. The shipper details the shipment's nature, weight, dimensions, and destination. The freight forwarder acts as a consultant, using their expertise to recommend the optimal mode of transport (air, sea, or land) based on speed, cargo type, and destination accessibility. 

They also provide cost estimates and guide the shipper on necessary customs documentation. Freight forwarders may also leverage internal shipping and logistics software to document details and generate initial freight quotes .

2. Export customs clearance

In this stage, the freight forwarder compiles all essential export documents and ensures they meet the specific requirements of the origin and destination countries. These documents typically include commercial invoices, packing lists, certificates of origin, and export licenses (if applicable).

Many countries have transitioned to electronic customs clearance systems to expedite the process. Freight forwarders use these platforms to submit documentation and interact with customs authorities efficiently. McKinsey estimates that an electronic bill of lading could save $6.5 billion in direct costs and enable $40 billion in global trade. In some instances, however, customs may require physical inspections of the cargo to verify the accuracy of the documentation and ensure regulatory compliance.

3. Haulage 

The preferred mode of transport from the pre-carriage stage determines the type of export haulage used. For example, freight forwarding companies use road haulage for land-based shipments, and they might use inland waterways like rivers and canals in specific cases. Freight forwarders employ GPS tracking technology in this stage to monitor the cargo's movement in real-time.

4. Main carriage

This is the core stage of the freight forwarding process, and it involves transporting the goods to the destination. In the case of maritime transportation, the freight forwarder monitors the shipment and coordinates with destination port agents for arrival and customs clearance. For urgent shipments, air freight might be chosen despite higher costs. In cases where the destination is landlocked, a combination of sea, rail, or truck transport ensures efficient delivery, adapting to logistical challenges.

5. Import customs clearance

Upon arrival at the final destination, the freight forwarder facilitates import customs clearance, ensuring the shipment complies with all import regulations and obtains the necessary clearance from customs authorities. These documents typically mirror those required for export, with additional country-specific variations. 

6. Delivery

Once they secure customs clearance, the carriers deliver the cargo to the consignees at the designated location. This process may involve additional warehousing, unpacking, or distribution services. Depending on the agreement, the freight forwarder may handle the final delivery to the consignee's warehouse or arrange pickup at the port or terminal. 

How to overcome top challenges in the freight forwarding industry 

Let's review five challenges freight forwarders face and the strategies to mitigate their impact:

1. Regulatory compliance

Freight forwarders must continuously stay updated on the latest rules across different countries to avoid delays, fines, or reputational damage due to non-compliance. Companies achieve this by investing in subscription-based services or software that provides real-time updates on regulatory changes specific to their trade routes. 

Leveraging the expertise of logistics service providers well-versed in customs procedures and regulatory requirements across different countries also helps. For instance, freight forwarders must adhere to the Export Administration Regulations (EAR) . These providers assist with accurate documentation and ensure import/export laws compliance. Regular training and continuous staff education on customs procedures, documentation requirements, trade compliance, and regulatory updates are essential.

2. Capacity and cost fluctuations

Shipping capacity and transportation costs fluctuate due to fuel prices, geopolitical events, and other factors. This constant price shift makes it difficult for freight forwarders to offer predictable pricing to their customers. To manage fluctuations in shipping capacity and transportation costs, freight companies should:

• Develop a diverse network of carriers, including multiple shipping lines and airlines, to secure better rates and avoid over-reliance on a few providers. 
• Consider dynamic pricing models that adjust based on market conditions. 
• Explore long-term contracts with carriers for fixed rates on specific volumes. 
• Leverage freight management software to optimise routes and reduce fuel costs.

3. Technological integration

Integrating new technologies into the freight forwarding industry poses a challenge, especially for companies with outdated infrastructure. Legacy systems may not be compatible with newer software, upgrading systems is expensive, and employees' learning curve may temporarily disrupt operations.

We recommend starting with initiatives that can give you a quick win — for example, by deploying a purpose-built email management platform that integrates with your software stack. Starting your digital transformation in your inbox will help you build momentum, gain stakeholder support, and mitigate risks.  Discover key strategies for supply chain change management.

4. Managing multiple stakeholders

Secure communication and collaboration are crucial to managing expectations, ensuring smooth operations, and building trust. 

Research from NTT Data indicates that 78% of logistics professionals believe improved communication is essential for building solid relationships with clients and carriers. And email remains the favoured method due to its accessibility, record-keeping capabilities, and ability to facilitate asynchronous communication across geographies. However, language barriers, time zone differences, and email overload present hurdles.

With AI-powered email management , you are able to:

• Prioritise messages that require your immediate attention
• Find the information that you need for streamlined decision-making 
• Track shipments in one place rather than in multiple systems 
• Accelerate customer responses

5. Risk management

Forwarders should assess each shipment's risk exposure and secure necessary arrangements well in advance​​. Unforeseen events like bad weather, labour disputes, or port congestion disrupt schedules, causing delays and potential financial losses. There's also the risk of cargo damage, theft, or loss due to unforeseen circumstances. 

Addressing the market volatility requires freight forwarders to share concerns over risks with clients, avoiding penalties or business interruptions. Working closely with third-party logistics (3PL) companies to address sudden demand surges helps manage unexpected volume increases without straining existing resources​​. 

Leverage Sedna for your freight forwarding and logistics needs

Sedna is a leading provider of AI-powered email management solutions specifically designed for the freight forwarding and logistics industry. Our platform, Stream , simplifies communication workflows, automates repetitive tasks (data entry, booking confirmations, quote generation, and tagging relevant stakeholders), and empowers freight forwarders to focus on their core competencies.

Benefits include:

• Improved accuracy: By automating data entry and communication tasks, freight forwarders reduce errors and ensure consistent information sharing with all involved parties. For instance, eliminating the need to input shipment details like dimensions and weights into emails minimises the risk of typos or incorrect data entry.
• Reduced email processing time: Sedna automates email organisation and prioritisation, freeing up valuable time for freight forwarders to focus on critical tasks such as resolving complex shipment issues and proactively managing logistics challenges.
• Data analytics : Automated data capture and analysis provide real-time visibility into key metrics such as shipment status, arrival times, potential delays, and communication logs with various stakeholders, enabling data-driven decisions to improve communication processes continuously.

Ready to optimise your freight forwarding operations? Book a Sedna demo today .

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Things to Consider When Starting a Freight Business

Matt Everard

5 min. read

Updated February 8, 2024

Free Download:  Sample Freight and Trucking Business Plan Templates

Freight is big business. The transportation of goods across the world is the keystone of modern society, with almost everything we use and consume passing through some part of the freight network. Unless a company is big enough to own a fleet of vehicles, they will need to rely on third parties to deliver their products. Even the world’s biggest corporations rely on specialist freight services for air, rail, and sea transport.

In the U.K. alone, freight forwarding is set to contribute an estimated £21.69bn to the economy this year. This situation is mirrored across the world, and establishing a freight business has never been a more attractive prospect.

There are two major types of freight business—a freight brokerage business and a freight forwarding business. Both sectors have a range of benefits and downsides.

• Starting a freight brokerage business

Freight brokerage businesses generally don’t handle any shipments themselves. They instead act as coordinators, matching suppliers with carriers. For example, a small business might want to send a shipment across the world to a customer. The freight brokerage business will research different shipping options, and then commission a carrier to pick the goods up and transport them to the destination.

The role involves a great deal of communication—soliciting clients, negotiating rates with carriers, tracking shipments, and arranging alternative transport if a problem develops in the supply chain.

Startup costs

At first glance, the required startup capital is fairly low, as brokers technically only need a phone and a computer to operate. However, bear in mind that good logistical software—an essential tool in the modern freight market—can be cripplingly expensive.

Cash flow can also prove problematic in the early days of running a freight brokerage business. Brokers usually take around 20 percent of the fee, but customers typically don’t pay until the shipment has been delivered—and carriers often demand payment up front when dealing with a new broker.

Pros and cons

In some countries, there are few barriers to starting a freight brokerage business, making it an easy target for would-be entrepreneurs. However, many others have introduced strict regulations. For example, U.S.-based brokers must purchase an extremely expensive bond,  and adhere to numerous other legal requirements.

Even if your country doesn’t monitor freight brokers, it’s advisable to seek membership of an accredited industry organization. This will lend your new company some credibility, and help persuade potential customers to enlist your services.

Finding companies to take your shipments can initially be a risky and time-consuming process. You will need to post your loads on an online board for companies to bid on, eventually negotiating a contract with the highest bidder.

Choosing a reputable carrier is essential—unscrupulous companies have been known to hold loads hostage, or simply cancel a shipment if a better offer comes in. However, once you’ve found a reliable carrier and built a working relationship with them, this stage of the process becomes much easier.

• Starting a freight forwarding business

Unlike brokers, freight forwarding businesses often directly handle customer shipments. Depending on the size of the shipment and the destination, a freight forwarding business could collect goods from a customer, store them at a warehouse, group smaller shipments into one larger consignment, and even deliver them.

Like freight brokers, forwarders also commission other carrier companies to handle shipments—particularly when goods need to be transported overseas.

The amount of startup capital needed will vary depending on both the products you will be handling, and the services you will offer. However, it will probably be more expensive than starting a brokerage.

You will need at least one vehicle for transportation, a secure storage facility for shipments, and potentially packing materials. If you’re planning on commissioning other carrier companies, you will also need to purchase logistical software.

One of the main difficulties for a freight brokerage business is handling supply chain disruptions. Transport delays and shipment issues are common, especially when working across international borders.

Although the broker is rarely at fault, late or missing deliveries can seriously harm a company’s reputation—and its income. By taking some of the transporting duties in-house, freight forwarding businesses have far greater control over their service, and are therefore more likely to both attract and satisfy customers.

However, this increased responsibility also leads to increased liability. Where freight brokers largely act as salespeople, freight forwarders actually handle shipments and are therefore subjected to many insurance and licensing regulations. These regulations increase exponentially when operating overseas, so keeping up-to-date with international customs and transportation laws is of the utmost importance.

• The specialist touch

Both freight brokering and forwarding are highly competitive niches, and the market is saturated with generalist companies—many of them large and powerful. Becoming a specialist company, with a focus on a certain type of shipment or transport method, is a good way to stand out against the competition.

Specializing in a particular type of shipment—such as abnormally heavy loads, student moves, or fragile products—will significantly reduce your customer base. However, this is not necessarily a disadvantage. Reputation and relationship-building are important in freight, and a smaller customer pool allows you to spend more time developing relationships with your clients.

By focusing on an excellent, personalized service within a small field, a new forwarder or broker can rapidly establish themselves as a reputable company with a loyal customer base.

• In conclusion

Depending on your location, running a freight brokerage business could be the most cost-effective way to join the industry. However, freight forwarding businesses have more control, and those offering specialist services have a real opportunity to grow a valuable company.

Regardless of your chosen path, you will need a great deal of knowledge in order to be successful.

The best place to start is by thoroughly researching international customs legislation, transportation rules, and insurance laws. Then document how you will run your trucking business by writing a business plan.

Check out our freight trucking business plan example and free template to get started.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Matt Everard is the CEO of Barrington Freight, a UK- based logistics company. Overseeing the business, he is particularly active within the marketing and business development sectors of his company. He has grown the business into an established force within the shipping industry, with high profile clients across the globe.

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Insights | Blog | Freight Forwarding Process: An In-depth Guide

Freight Forwarding Process: An In-depth Guide

Freight forwarding is a pivotal element in the global trade ecosystem, ensuring that goods move from one point to another seamlessly and efficiently. It plays a significant role in connecting markets, facilitating international trade, and fuelling economic growth across nations. A good understanding of the freight forwarding process can equip businesses with the knowledge they need to make informed decisions and navigate the complex logistics landscape. 

What is Freight Forwarding?  

Freight forwarding involves organising and transporting goods from one location to another utilising diverse transportation methods such as air, sea, and land. The practice of freight forwarding has a rich history, tracing back to the days of the Silk Road, which facilitated trade between the East and West. Over the centuries, freight forwarding has evolved into a sophisticated, technology-driven service crucial for global commerce.  Whether it’s ocean freight , air freight or road freight – the objective of freight forwarding is the seamless movement of cargo from the point of origin to its correct destination. 

Key Players in Freight Forwarding  

The freight forwarding process involves multiple stakeholders, each playing a distinct role: 

Freight Forwarders  

Freight forwarders play a pivotal role in the freight forwarding process, serving as intermediaries connecting shippers (seeking to transport goods) with carriers (providing transportation services). Their extensive network of logistics and transportation partners empowers them to select the most efficient and cost-effective routes and transportation methods. Additionally, their services encompass the management of essential documentation for international shipping, insurance, and customs clearance . Moreover, they provide advice on various shipping matters including saving costs, ensuring cargo safety, and adhering to relevant laws and regulations. Global freight forwarding companies with their expertise and global network are invaluable for navigating the complex logistics landscape involved in international trade. 

Shippers  

Shippers represent individuals or entities requiring the transportation of goods from one location to another. They might include manufacturers seeking to ship their products to distributors, retailers, or directly to end consumers. Alternatively, they could be individuals sending personal belongings overseas. Shippers are responsible for providing accurate information about the goods to be transported, including their nature, dimensions, weight, and destination. They rely on freight forwarders and carriers to ensure their goods are delivered safely on time, and at a reasonable cost. 

Carriers  

Carriers are the entities or individuals tasked with the physical transportation of goods. They can operate across various modes of transport including sea (shipping lines), air (airlines), road (trucking companies), and rail. Carriers bear the responsibility of ensuring the secure and punctual delivery of goods from their origin to their designated destination. They are also obligated to adhere to a multitude of laws and regulations governing transportation, both at the domestic and international levels. Their services are crucial for moving goods across long distances, and they work closely with freight forwarders to ensure the smooth flow of goods through the supply chain. 

Customs Authorities  

Customs Authorities are government agencies responsible for controlling the flow of goods into and out of a country. They guarantee that all goods, whether imported or exported, adhere to local and international laws and regulations. This includes checking the documentation, verifying the contents of shipments, and assessing and collecting customs duties and taxes. Customs Authorities play a crucial role in preventing illegal trade, protecting the economy, and ensuring the security of the country. They require accurate and complete documentation from shippers and freight forwarders to clear goods through customs checkpoints, thus making compliance a critical aspect of the freight forwarding process. 

These key players interact and collaborate at various stages of the freight forwarding process to ensure the seamless movement of goods across borders, adhering to legal and regulatory frameworks, and satisfying the shipping requirements of individuals and businesses alike. 

Stages of the Freight Forwarding Process  

The freight forwarding process is a multi-step journey that ensures goods reach their destination: 

Export Haulage  

Export Haulage refers to the initial stage of transporting goods from the shipper’s premises to the freight forwarder’s warehouse or a designated consolidation point. This phase is pivotal as it establishes the tempo for the entire forwarding procedure. The transportation can be carried out through various means, including road, rail, or a combination of both. The cost, time duration, and efficiency of this stage significantly depend on the geographical distance between the shipper’s location and the freight forwarder’s facility, as well as the prevailing traffic and transportation conditions. 

Export Customs Clearance  

Before goods can exit their country of origin, they must be cleared by the customs authorities. Export Customs Clearance is a regulatory compliance stage where all necessary export documentation is prepared and submitted to customs for approval. This documentation may include the commercial invoice, packing list, and other necessary permits or licenses. The description, value, and intended destination of the goods undergo scrutiny to verify their compliance with export regulations. Timely and accurate documentation is crucial to prevent any delays or fines. 

Origin Handling  

This phase encompasses several activities including unloading the consignment from the truck, inspecting the cargo for any discrepancies or damages, and validating the goods against the booking documentation. It also involves storing the goods in the freight forwarder’s warehouse, preparing them for further transportation, and loading them onto the outbound transportation medium (like a ship, airplane, or truck). Proper handling at this stage is crucial to prevent any damage to the goods and to ensure that the correct consignment is sent to the intended destination. 

Import Customs Clearance  

Similar to Export Customs Clearance, the Import Customs Clearance stage involves the preparation and submission of necessary documentation to the customs authorities in the destination country. The documents, which may include the bill of lading, commercial invoice, and packing list, are scrutinized to ensure compliance with the importing country’s regulations. This stage is crucial for ensuring that the goods are legally imported, and all customs duties and taxes are accurately assessed and paid. 

Destination Handling  

Upon arrival at the destination, the cargo is handled by the destination agent or the freight forwarder’s counterpart in the destination country. This stage involves unloading the consignment from the arriving mode of transport, inspection for any damages incurred during transit, and cross-verifying the delivered goods against the transportation documents. The goods are then stored temporarily in a warehouse awaiting the final phase of delivery. 

Import Haulage  

The final phase, Import Haulage, involves transporting the goods from the destination warehouse to the final delivery address, which could be the buyer’s premises or another specified location. This phase might also include further customs inspections or delivery scheduling to ensure the consignment reaches the intended recipient in a timely and secure manner. 

Each of these stages requires a coordinated effort among various stakeholders, including shippers, freight forwarders, carriers, and customs authorities, to ensure the seamless movement of goods from origin to destination. 

In conclusion  

Understanding and navigating the freight forwarding process is crucial for any business involved in international trade. A seamlessly orchestrated freight forwarding process is the basis of efficient global freight forwarding and can greatly improve the efficiency and dependability of worldwide supply chains.  

FAQs  

Why is it important to use Freight Forwarder Services?  

Using freight forwarder services is important because they provide expertise and resources that can streamline the logistics and transportation of goods, especially in international trade. Freight forwarders possess in-depth expertise in customs regulations, shipping methodologies, and essential documentation requirements. They can navigate complex logistical challenges, find cost-effective shipping solutions, and efficiently manage the supply chain. This alleviates the workload on businesses, enabling them to concentrate on their core operations while ensuring the secure and punctual transportation of their goods. 

What is Freight Forwarding Insurance?  

Freight forwarding insurance is a form of protection that safeguards shipments from loss or damage while in transit. This insurance is crucial for businesses as it provides financial protection against risks involved in shipping goods, including accidents, natural disasters, theft, and other unforeseen events. Freight forwarders often offer this insurance as part of their services, ensuring that the goods are covered from the point of origin to the final destination. 

How do you handle missing freight?  

Handling missing freight involves several steps: 

Investigation  

Immediately report the issue to the freight forwarder or carrier and initiate an investigation. Provide all necessary details about the shipment to aid the search. 

Tracking and Tracing  

Utilise tracking systems to locate the missing freight. Freight forwarders often have access to sophisticated tracking solutions that can help pinpoint the location of the shipment. 

Claim Filing  

In case the freight cannot be located, initiate a claim with the carrier or insurance provider. Ensure that all required documentation, including the bill of lading and insurance policy, is properly prepared to substantiate the claim. 

Resolution and Recovery  

Collaborate with the freight forwarder and the insurance company to address the matter. This may involve financial compensation for the lost goods or finding and delivering the missing freight. 

Preventive Measures  

Review the situation to understand how the freight went missing and implement measures to prevent similar issues in the future. 

WeFreight: Your Gateway to Hassle-free Freight Forwarding  

Streamlining logistics and ensuring a smooth freight forwarding journey is pivotal in today’s fast-paced global market. With WeFreight by your side, you’re not just leveraging a service, but partnering with a dedicated ally committed to navigating the complex waters of freight forwarding on your behalf. We have a deep knowledge of rules for shipping overseas, customs procedures, and the quickest ways to get your items to where they need to go on time and safely. Discover the ease of freight forwarding with WeFreight, where our tailored solutions are designed to cater to your unique shipping needs, providing you with peace of mind and allowing you to focus on what you do best – growing your business. 

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Freight forwarders’ earnings amid carrier-rate volatility

The supply-chain crisis has driven an increase in freight rates, with implications for freight forwarders’ earnings. Understanding the relationship between rates and earnings can help freight forwarders navigate the volatile forwarding market.

Our analysis draws on recent and historical data to reveal major trends around freight forwarders’ gross margins and absolute gross profit amid carrier-rate changes.

Through three key charts, this article examines forwarders’ cost structures, the relationship between gross profit margins and freight-rate changes, implications for forwarders’ current earnings, and the potential outlook for future earnings.

Freight forwarders are asset-light intermediaries with flexible cost structures

Carrier rates are a key driver of freight forwarders' gross profit. Between 62 and 85 percent of revenues are channeled into purchasing carrier capacity (such as shipping lines or cargo airlines). Of the remainder, forwarders typically convert 20 to 30 percent to earnings before interest and taxes (EBIT), achieving EBIT margins of 1 to 11 percent—with return on invested capital (ROIC) typically above 20 percent, given the asset-light business model. Freight forwarders’ cost structures are thus generally flexible.

Would you like to learn more about our Travel, Logistics and Infrastructure Practice ?

Gross profit margins decrease as rates increase, but absolute profit improves.

For both ocean and air freight, gross profit margins shrink as carrier rates increase, and inflate at times of low rates. Since 2005, gross profit margins went up by four percentage points over a ten-year period, while carrier rates declined. The dynamic has recently reversed, with gross profit margins at a ten-year low while carrier rates are at their highest. On the other hand, absolute gross profit (and gross profit per transported unit of cargo) can increase in times of higher rates.

Unlocking the omnichannel opportunity in contract logistics

Forwarders’ earnings are currently elevated, driven by freight-rate peaks, but are expected to trend downwards.

Gross profit margins are dropping for both air and ocean forwarders as carrier yields have soared, quintupling from 2017 for ocean lines. Meanwhile, gross profit per unit has increased with the surge in demand. Coupled with largely flat operating costs, this has led to significantly higher EBIT margins compared to historic averages. Forwarders’ earnings are currently elevated as a result. However, carrier rates are expected to decrease in the coming years, and forwarders’ earnings will likely trend downwards. 1 “Container Forecaster: Quarter 1,” Drewry, March, 2022.

Soufiane Daher is a knowledge expert in McKinsey’s Amsterdam office, Ludwig Hausmann is a partner in the Munich office, and Tobias Wölfel is a knowledge expert in the Düsseldorf office.

The authors would like to thank Paul Ladwig for his contributions to this article.

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The Opening Days of Trump’s First Criminal Trial

Here’s what has happened so far in the unprecedented proceedings against a former u.s. president..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

It’s the first day of the Trump trial and just walking out the door in my house. It’s a beautiful day, 6:11 AM. The thing that keeps running through my head is it’s kind of amazing that hundreds of jurors are going to show up at the Manhattan courthouse. And some of them are going to know what they’re there for — probably talking to their friends, their relatives about it.

Some of them are going to learn this morning talking to other jurors in line, asking what all the fuss is about. But I really do imagine that there’s going to be at least one potential juror who, headphones on, getting into court. Here they’re going to be there for the first criminal trial of Donald J. Trump. And just, I mean, how would you react?

[MUSIC PLAYING]

From “The New York Times,” I’m Michael Barbaro. This is “The Daily.” Today, what it’s been like inside the lower Manhattan courtroom, where political and legal history are being made? My colleague, Jonah Bromwich, on the opening days of the first criminal trial of a US President. It’s Thursday, April 18.

Is that his mic? Hi, there.

Hello. How are you?

I’m doing good.

OK. Thank you for coming in, Jonah —

Thank you for having me.

— in the middle of a trial. Can you just explain why you’re able to even be here?

Sure. So we happen to be off on Wednesdays during trial, so.

We being not “The New York Times,” but the courts.

That’s right.

Which is why we’re taping with you. And because we now have two full court days of this history-making trial now under our belts. And the thing about this trial that’s so interesting is that there are no cameras in the courtroom for the wider world.

There’s no audio recordings. So all we really have is and your eyes and your notebook, maybe your laptop. And so we’re hoping you can reconstruct for us the scene of the first two days of this trial and really the highlights.

Yeah, I’d be happy to. So on Monday morning, I left the subway. It’s before 7:00 AM. The sun is just rising over these grandiose court buildings in lower Manhattan.

I’m about to turn left onto Center Street. I’m right in front of the big municipal building.

And I turn onto Center Street. That’s where the courthouses are.

I’m crossing.

And I expected to see a big crowd. And it was even bigger than I had anticipated.

Here we go. Here we go. Here we go. Now, I finally see the crowd.

You have camera banks. You have reporters. You have the beginnings of what will eventually become a protest. And you have this most New York thing, which is just a big crowd of people.

[CHUCKLES]: Who just know something is going on.

That’s right. And what they know is going on is, of course, the first trial of an American president.

All right, I’m passing the camera, folks. Camera, camera, camera, camera. Here we go.

Let’s start with Sharon Crowley live outside the courthouse in Lower Manhattan.

I want to get right to ABC’S Aaron Katersky who’s outside of the courthouse.

Robert Costa is following it outside the courthouse in Lower Manhattan. Bob, I saw the satellite trucks lined up all in a row. Good morning.

Talk to us how we got here exactly.

So this is the case that was brought by the Manhattan district attorney. So prosecutors have accused Donald Trump of covering up the actions of his former fixer, Michael Cohen, after Cohen paid hush money to Stormy Daniels. Stormy Daniels had a story about having had sex with Donald Trump, which Trump has always denied.

Cohen paid her money, and then Trump reimbursed Cohen. And prosecutors say that Trump essentially defrauded the American people because he hid this information that could have been very important for the election from those people when he reimbursed Cohen.

Right. And as I remember it, he also misrepresented what that reimbursement was. Claimed it was a legal fee when, in fact, it was just reimbursing Michael Cohen for a hush money payment.

Exactly, yeah. He definitely didn’t say reimbursement for hush money payment to Stormy Daniels. It’s a cover up case. It’s a case about hiding information you don’t want people to see.

Right. And of course, the context of all this is that it is in the middle of a presidential election. It’s 2016. Trump wants to keep this secret, prosecutors allege, so that the American public doesn’t know about it and potentially hold it against him.

Right. And prosecutors are telling a story about election interference. They’re saying that Trump interfered with an election. And Trump himself is also using the phrase “election interference.” But he’s painting the trial itself as election interference as he now runs again in 2024.

Fascinating.

And because we’re in Manhattan, and because the jury pool is going to be largely Democratic, and the judge is a Democrat, and the district attorney is a Democrat, Trump keeps claiming he cannot get a fair shake. This is democrat central. And in democrat central, Trump doesn’t have a chance.

OK. So, what happens once you actually enter the courthouse?

Outside, there’s all this fanfare. But inside, it’s a little bit business as usual. So I go up to the 15th floor, and I walk into the courtroom, and I sit down, and it’s the same old courtroom. And we’re sitting and waiting for the former president.

Around 9:30, Trump walks in. He looks thin. He looks a little tired, kind of slumping forward, as if to say with his body like let’s get this over with. Here we go.

The judge walks in a little bit after that. And we think we’re all set for the trial to start, but that’s not what happens here. And in fact, there are a series of legal arguments about what the trial is going to look like and what evidence is going to be allowed in.

So, for example, prosecutors ask that they be allowed to admit into evidence headlines from “The National Enquirer” that were attacks on Trump’s 2016 opponents — on Ted Cruz, on Marco Rubio, on Ben Carson.

Because prosecutors are in some sense putting Trump’s 2016 campaign on trial. These headlines are a big part of that because what prosecutors say they show is that Trump had this ongoing deal with “The National Enquirer.” And the publisher would promote him, and it would publish damaging stories about his opponents. And then crucially, it would protect Trump from negative stories. And that’s exactly what prosecutors say happened with Stormy Daniels. That “The National Enquirer” tipped Cohen off about Stormy Daniels trying to sell her story of having had sex with Donald Trump, which he denies. And that led to the hush money payment to her. So what prosecutors are doing overall with these headlines is establishing a pattern of conduct. And that conduct, they say, was an attempt to influence the election in Trump’s favor.

And the judge agrees. He’s going to admit this evidence. And this is a pretty big win for the prosecution. But even though they win that one, they’re not winning everything.

They lose some important arguments here. One of them was that after the Access Hollywood tape came out, there were allegations of sexual assault against Donald Trump. And you know this, Michael, because you reported two of them — two of the three in question at this very trial.

Prosecutors had hoped to talk about those during trial in front of the jury to show the jurors that the Trump campaign was really, really focused on pushing back against bad press in the wake of the Access Hollywood tape in which Trump seemed to describe sexual assault. That was a big problem for the campaign. Campaign did everything it could to push back, including against these allegations that surfaced in the wake of the tape.

But the judge, saying that the allegations are hearsay — that they’re based on the women’s stories — says absolutely not. That is incredibly prejudicial to the defendant.

Interesting.

And that Donald Trump would actually not get a fair trial were those allegations to be mentioned. And so he will not let those in. The jurors will not hear about them.

So this is a setback, of course, for the prosecution, a victory for Trump’s legal team.

It’s a setback. And it also just shows you how these pre-trial motions shape the context of the trial. Think of the trial as a venue like a theater or an athletic contest of some sort. And these pre-trial motions are about what gets led into the arena and what stays out. The sexual assault allegations — out. “The National Enquirer” headlines — in.

OK. And how is Trump sitting there at the defense table reacting to these pre-trial motion rulings from the judge?

Well, as I’ve just said, this is very important stuff for his trial.

Right. Hugely important.

But it’s all happening in legal language, and I’m decoding it for you. But if you were sitting there listening to it, you might get a little lost, and you might get a little bored. And Trump, who is not involved in these arguments, seems to fall asleep.

Seems to fall asleep — you’re seeing this with your own eyes.

What we’re seeing, overall, including our colleague, Maggie Haberman, who’s in the overflow room and has a direct view of Trump’s face — I’m sitting behind him in the courtroom, so I can’t see his face that well.

You guys are double teaming this.

That’s right. I’m sitting behind him, but Maggie is sitting in front of him. And what she sees is not only that his eyes are closed. That wouldn’t get you to he is asleep.

And we have to be really careful about reporting that he’s asleep, even if it seems like a frivolous thing. But what happens is that his head is dropping down to his chest, and then it’s snapping back up. So you’ve seen that, when a student —

I’ve done that.

(CHUCKLES) Yeah. We all kind of know that feeling of snapping awake suddenly. And we see the head motion, and it happens several times.

Lawyers kind of bothering him, not quite shaking him, but certainly trying to get his attention. And that head snapping motion, we felt confident enough to report that Trump fell asleep.

During his own criminal trial’s opening day.

Does someone eventually wake him up?

He wakes up. He wakes up. And in fact, in the afternoon, he’s much more animated. It’s almost as if he wants to be seen being very much awake.

Right. So once these pre-trial motions are ruled on and Trump is snapped back to attention, what happens?

Well, what happens in the courtroom is that the trial begins. The first trial of an American president is now in session. And what marks that beginning is jurors walking into the room one by one — many of them kind of craning their necks over at Donald Trump, giggling, raising their eyebrows at each other, filing into the room, and being sworn in by the judge. And that swearing in marks the official beginning of the trial.

The beginning is jury selection, and it’s often overlooked. It’s not dramatized in our kind of courtroom dramas in the same way. But it’s so important. It’s one of the most important parts of the case. Because whoever sits on the jury, these are the 12 people who are going to decide whether Trump is guilty or whether Trump is innocent.

So how does jury selection actually look and feel and go?

So, jury selection is a winnowing process. And in order to do that, you have to have these people go through a bunch of different hurdles. So the first hurdle is, after the judge describes the case, he asks the group — and there are just short of 100 of them — whether they can be fair and impartial. And says that if they can’t, they should leave. And more than half the group is instantly gone.

So after we do this big mass excusal, we’re left with the smaller group. And so now, jurors are getting called in smaller groups to the jury box. And what they’re going to do there is they’re going to answer this questionnaire.

And this part of the process is really conducted by the judge. The lawyers are involved. They’re listening, but they’re not yet asking questions of the jurors themselves.

And what’s on the questionnaire?

Well, it’s 42 questions. And the questions include, their education, their professional histories, their hobbies, what they like to do whether you’re a member of QAnon or Antifa.

Whether you’re far left or far right.

That’s right. Whether you’ve read “The Art of the Deal,” Trump’s book, which some prospective jurors had.

Right. It was a bestseller in its time.

That’s right. And some of it can be answered in yes/no questions, but some of it can be answered more at length. So some of the prospective jurors are going very, very fast. Yes, no, no, no, yes.

Right. Because this is an oral questionnaire.

That’s right. But some of them are taking their time. They’re expanding on their hobbies. So the potential juror in seat 3, for example, is talking about her hobbies. And she says some running, hiking. And then she said, I like to go to the club, and it got a huge laugh. And you get that kind of thing in jury selection, which is one of the reasons it’s so fun. It’s the height of normality in this situation that is anything but normal.

Right. The most banal answer possible delivered in front of the former president And current Republican nominee for president.

Well, that’s one of the fascinating parts about all this, right? is that they’re answering in front of Trump. And they’re answering questions about Trump in front of Trump. He doesn’t react all that much. But whenever someone says they’ve read “The Art of the Deal —” and there are a few of those — he kind of nods appreciatively, smiles. He likes that. It’s very clear. But because there are so many questions, this is taking forever, especially when people are choosing to answer and elaborate and digress.

This is when you fall asleep.

This Is. When I would have fallen asleep if I were a normal person.

And by the end of the day. Where does jury selection stand?

Well, the questionnaire is another device for shrinking that jury pool. And so the questionnaire has almost these little obstacles or roadblocks, including, in fact, a question that jurors have seen before — whether they would have any problem being fair and impartial?

Hmm. And they ask it again.

They’re asked it again. And they’re asked in this more individualized way. The judge is questioning them. They’re responding.

So, remember that woman who said she liked to go to the club got a big laugh. She reaches question 34. And question 34 reads, “Do you have any strong opinions or firmly-held beliefs about former President Donald Trump or the fact that he is a current candidate for president that would interfere with your ability to be a fair and impartial juror?” She said, yes, she does have an opinion that would prevent her from being fair and impartial. And she, too, is excused.

So that’s how it works. People answer the questionnaire, and they get excused in that way, or they have a scheduling conflict once they reach the jury box. And so to answer your question, Michael. At the end of day one, given all these problems with the questionnaire and the length of time it’s taken to respond to and people getting dismissed based on their answers, there is not a single juror seated for this trial.

And it’s starting to look like this is going to be a really hard case for which to find an impartial jury.

That’s the feeling in the room, yeah.

We’ll be right back.

So Jonah, let’s turn to day 2. What does jury selection look like on Tuesday?

So when the day begins, it looks almost exactly like it looked when the day ended on Monday. We’re still with the questionnaire, getting some interesting answers. But even though it feels like we’re going slow, we are going.

And so we’ve gone from about 100 people to now there’s about 24 the room there’s 18 the jury box. And by the time we hit lunch, all those people have answered all those questions, and we are ready for the next step in the process.

Voir dire. And what it is the heart of jury selection. This is the point where the lawyers themselves finally get to interview the jurors. And we get so much information from this moment because the lawyers ask questions based on what they want out of the jurors.

So the prosecution is asking all these different kinds of questions. The first round of wajir is done by a guy named Joshua Steinglass, a very experienced trial lawyer with the Manhattan District Attorney’s Office. And he’s providing all these hypotheticals. I’ll give you one example because I found this one really, really interesting. He provides a hypothetical about a man who wants his wife killed and essentially hires a hitman to do it. And what he asked the jurors is, if that case were before you, would you be able to see that the man who hired the hitman was a part of this crime?

And of course, what he’s really getting at is, can you accept that even though Michael Cohen, Trump’s fixer, made this payment, Trump is the guy who hired him to do it?

That’s right. If there are other people involved, will jurors still be able to see Donald Trump’s hands behind it all?

Fascinating. And what were some of the responses?

People mostly said, yes, we accept that. So that’s how the prosecution did it.

But the defense had a totally different method of voir dire. They were very focused on their client and people’s opinions about their client.

So what kind of questions do we get from them?

So the lawyer, Todd Blanche, is asking people, what do you make of President Trump? What do you think of President Trump?

And what are some of the responses to that?

Well, there’s this incredible exchange with one of the jurors who absolutely refuses to give his opinion of Donald Trump. They go back and forth and back and forth. And the juror keeps insisting you don’t need to know my opinion of him. All you need to know is that I’m going to be fair and impartial, like I said. And Blanch pushes, and the guy pushes back. And the only way the guy budges is he finally kind of confesses almost at the end that, yes, I am a Democrat, and that’s all we get.

And what ends up happening to this potential juror?

Believe it or not, he got dismissed.

[LAUGHS]: I can believe it. And of course, it’s worth saying that this guy and everybody else is being asked that question just feet from Trump himself.

That’s right. And you might think you were going to get a really kind of spicy, like, popcorn emoji-type exchange from that. But because these are now jurors who have said they can be fair and impartial, who, to some extent, want to be on this jury or at least wouldn’t mind being on this jury, they’re being very restrained.

Mostly, what they are emphasizing — much like that guy just described dis — is that they can be fair. They can be impartial. There’s one woman who gives this really remarkable answer.

She says, I thought about this last night. I stayed up all night. I couldn’t sleep, thinking about whether I could be fair. It’s really important to me, and I can.

What ends up happening to that particular juror?

She’s also dismissed. And she’s dismissed without any reason at all. The defense decides it doesn’t like her. It doesn’t want her on the jury. And they have a certain number of chances to just get rid of jurors — no questions asked.

Other jurors are getting dismissed for cause — I’m doing air quotes with my hands — which means that the lawyers have argued they actually revealed themselves through their answers or through old social media posts, which are brought up in the courtroom, to be either non-credible, meaning they’ve said they can be fair and they can’t, or somehow too biased to be on the jury.

Wait, can I just dial into that for a second? Are lawyers researching the jurors in real time going online and saying — I’m making this up — but Jonah Bromwich is a potential juror, and I’m going to go off into my little corner of the courtroom and Google everything you’ve ever said? Is that what’s happening in the room?

Yeah, there’s a whole profession dedicated to that. It’s called jury consultant, and they’re very good at finding information on people in a hurry. And it certainly looked as if they were in play.

Did a social media post end up getting anybody kicked off this jury?

Yes, there were posts from 2016 era internet. You’ll remember that time as a very heated one on the internet, Facebook memes are a big thing. And so there’s all kinds of lock him up type memes and rhetoric. And some of the potential jurors here have used those. And those jurors are dismissed for a reason.

So we have these two types of dismissals, right? We have these peremptory dismissals — no reason at all given. And we have for cause dismissals.

And the process is called jury selection. But you don’t actually get selected for a jury. The thing is to make it through all these obstacles.

You’re left over.

Right. And so when certain jurors are not dismissed, and they’ve made it through all these stages, by the end of the day, we have gone from zero juror seated to seven jurors who will be participating in Donald Trump’s trial.

Got it. And without going through all seven, just give us a little bit of a sketch of who so far is on this jury. What stands out?

Well, not that much stands out. So we’ve got four men. We’ve got three women. One lives on the Upper East Side. One lives in Chelsea. Obviously, they’re from all over Manhattan.

They have these kind of very normal hobbies like spending time with family and friends. They have somewhat anonymous jobs. We’ve got two lawyers. We’ve got someone who’s worked in sales.

So there’s not that much identifying information. And that’s not an accident . One of the things that often happens with jury selection, whether it be for Donald Trump or for anyone else, is the most interesting jurors — the jurors that kind of catch your attention during the process — they get picked off because they are being so interesting that they interest one or the other side in a negative way. And soon they’re excused. So most of the jurors who are actually seated —

Are not memorable.

Are not that memorable, save one particular juror.

OK. All right, I’ll bite. What do I need to know about that one particular juror?

So let me tell you about a prospective juror who we knew as 374, who will now be juror number five. She’s a middle school teacher from Harlem. And she said that she has friends who have really strong opinions about Trump, but she herself does not. And she insisted several times, I am not a political person.

And then she said this thing that made me quite surprised that the prosecution was fine with having her on the jury. She said, quote, “President Trump speaks his mind, and I’d rather that than someone who’s in office who you don’t know what they’re thinking.”

Hmm. So she expressed approval of President Trump.

Yeah, it was mild approval. But the thing is, especially for the defense in this trial, all you need is one juror. One juror can tie up deliberations in knots, and you can end with a hung jury. And this is actually something that I saw firsthand. In 2019, I was the foreperson on a jury.

How you like that?

Yeah. And the trial was really complicated, but I had thought while we were doing the trial, oh, this is going to be a really easy decision. I thought the defendant in that case was guilty. So we get into deliberations, but there’s this one juror who keeps gumming up the works every time we seem to be making progress, getting a conversation started.

This juror proverbially throws up his hands and says, I am not convicting. This man is innocent. And we talked and we talked. And as the foreperson, I was trying to use all my skills to mediate.

But any time we made any progress, this guy would blow it up. And long story short, hung jury — big victory for the defense lawyer. And we come out of the room. And she points at this juror. The guy —

The defense lawyer.

The defense lawyer points at this juror who blew everything up. And she said, I knew it. I knew I had my guy.

OK. I don’t want to read too much into what you said about that one juror. But should I read between the lines to think that if there’s a hung jury, you wonder if it might be that juror?

That’s what everyone in the courtroom is wondering not just about this juror, but about every single person who was selected. Is this the person who swings the case for me? Is this the person who swings the case against me?

These juries are so complex. It’s 12 people who don’t know each other at the start of the trial and, by the end of the trial, have seen each other every morning and are experiencing the same things, but are not allowed to have talked about the case until deliberations start. In that moment when deliberations start —

You’re going to learn a whole lot about each other.

That’s right. There’s this alchemical moment where suddenly, it all matters. Every personality selected matters. And that’s why jury selection is so important. And that’s why these last two days are actually one of the most important parts of this trial.

OK. So by my math, this trial will require five more jurors to get to 12. I know also they’re going to need to be alternates. But from what you’re saying what looked like a really uphill battle to get an impartial jury or a jury that said it could be impartial — and Trump was very doubtful one could be found — has turned out to not be so hard to find.

That’s right. And in fact, we went from thinking, oh, boy, this is going awfully slowly, to the judge himself saying we could be doing opening arguments as soon as Monday morning. And I think that highlights something that’s really fascinating both about this trial and about the jury selection process overall.

One of the things that lawyers have been arguing about is whether or not it’s important to figure out what jurors’ opinions about Donald Trump are. And the prosecution and, I think, the judge have really said, no, that’s not the key issue here. The key issue is not whether or not people have opinions about Donald Trump.

Right. Who doesn’t have an opinion about Donald Trump?

Exactly. They’re going to. Automatically, they’re going to. The question is whether or not they can be fair and impartial. And the seven people we already have seated, and presumably the five people that we’re going to get over the next few days and however many alternates — we expect six — are all going to have answered that question, not I hate Trump; I love Trump, but I can weigh in on the former president’s innocence or guilt, and I can do it as fairly as humanly possible.

Now, Trump is not happy about this. He said after court yesterday, quote, We have a highly conflicted judge, and he’s rushing this trial.” And I think that he is going to see these beats of the system the criminal justice system as it works on him as he is experiencing it as unfair. That is typically how he talks about it and how he views it.

But what he’s getting is what defendants get. This is the system in New York, in the United States. This is its answer to how do you pick a fair jury? Well, you ask people can you be fair? And you put them through this process, and the outcome is 12 people.

And so I think we’re going to see this over and over again in this trial. We’re going to see Trump experience the criminal justice system.

And its routines.

Yeah, openings, witnesses, evidence, closings. He’s going to go through all of it. And I think, at every turn, it makes sense to expect him to say, well, this is not fair. Well, the judge is doing something wrong. Well, the prosecutors are doing something wrong. Well, the jury is doing something wrong.

But at the end of the day, he’s going to be a defendant, and he’s going to sit, mostly silently if his lawyers can make him do that, and watch this process play itself out. So the system is going to try and treat him like any other defendant, even though, of course —

— he’s not. And he is going to fight back like no other defendant would, like no other defendant could. And that tension, him pushing against the criminal justice system as it strives to treat him, as it would anyone else, is going to be a defining quality of this trial.

Well, Jonah, thank you very much. We appreciate it.

Of course. Thanks so much for having me. [MUSIC PLAYING]

PS, have you ever fallen asleep in a trial?

I have not.

[CHUCKLES]:

Here’s what else you need to know today.

It’s clear the Israelis are making a decision to act. We hope they do so in a way that does as little to escalate this as possible and in a way that, as I said —

During a visit to Jerusalem on Wednesday, Britain’s foreign Secretary left little doubt that Israel would retaliate against Iran for last weekend’s aerial attack, despite pressure from the United States and Britain to stand down. The question now is what form that retaliation will take? “The Times” reports that Israel is weighing several options, including a direct strike on Iran, a cyber attack, or targeted assassinations. And —

Look, history judges us for what we do. This is a critical time right now, critical time on the world stage.

In a plan that could threaten his job, Republican House Speaker Mike Johnson will put a series of foreign aid bills up for a vote this weekend. The bills, especially for aid to Ukraine, are strongly opposed by far-right House Republicans, at least two of whom have threatened to try to oust Johnson over the plan.

I can make a selfish decision and do something that’s different, but I’m doing here what I believe to be the right thing. I think providing lethal aid to Ukraine right now is critically important. I really do. I really — [MUSIC PLAYING]

Today’s episode was produced by Rikki Novetsky, Will Reid, Lynsea Garrison, and Rob Zubko. It was edited by Paige Cowett, contains original music by Marion Lozano, Elisheba Ittoop, and Dan Powell, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly Lake.

That’s it for “The Daily.” I’m Michael Barbaro. See you tomorrow.

• April 19, 2024   •   30:42 The Supreme Court Takes Up Homelessness
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• April 16, 2024   •   29:29 A.I.’s Original Sin
• April 15, 2024   •   24:07 Iran’s Unprecedented Attack on Israel
• April 14, 2024   •   46:17 The Sunday Read: ‘What I Saw Working at The National Enquirer During Donald Trump’s Rise’
• April 12, 2024   •   34:23 How One Family Lost $900,000 in a Timeshare Scam
• April 11, 2024   •   28:39 The Staggering Success of Trump’s Trial Delay Tactics
• April 10, 2024   •   22:49 Trump’s Abortion Dilemma
• April 9, 2024   •   30:48 How Tesla Planted the Seeds for Its Own Potential Downfall
• April 8, 2024   •   30:28 The Eclipse Chaser
• April 7, 2024 The Sunday Read: ‘What Deathbed Visions Teach Us About Living’

Hosted by Michael Barbaro

Featuring Jonah E. Bromwich

Produced by Rikki Novetsky ,  Will Reid ,  Lynsea Garrison and Rob Szypko

Edited by Paige Cowett

Original music by Dan Powell ,  Marion Lozano and Elisheba Ittoop

Engineered by Chris Wood

Listen and follow The Daily Apple Podcasts | Spotify | Amazon Music

Political and legal history are being made in a Lower Manhattan courtroom as Donald J. Trump becomes the first former U.S. president to undergo a criminal trial.

Jonah Bromwich, who covers criminal justice in New York, explains what happened during the opening days of the trial, which is tied to Mr. Trump’s role in a hush-money payment to a porn star.

On today’s episode

Jonah E. Bromwich , who covers criminal justice in New York for The New York Times.

Background reading

Here’s a recap of the courtroom proceedings so far.

Mr. Trump’s trial enters its third day with seven jurors chosen.

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The Daily is made by Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Sydney Harper, Mike Benoist, Liz O. Baylen, Asthaa Chaturvedi, Rachelle Bonja, Diana Nguyen, Marion Lozano, Corey Schreppel, Rob Szypko, Elisheba Ittoop, Mooj Zadie, Patricia Willens, Rowan Niemisto, Jody Becker, Rikki Novetsky, John Ketchum, Nina Feldman, Will Reid, Carlos Prieto, Ben Calhoun, Susan Lee, Lexie Diao, Mary Wilson, Alex Stern, Dan Farrell, Sophia Lanman, Shannon Lin, Diane Wong, Devon Taylor, Alyssa Moxley, Summer Thomad, Olivia Natt, Daniel Ramirez and Brendan Klinkenberg.

Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly. Special thanks to Sam Dolnick, Paula Szuchman, Lisa Tobin, Larissa Anderson, Julia Simon, Sofia Milan, Mahima Chablani, Elizabeth Davis-Moorer, Jeffrey Miranda, Renan Borelli, Maddy Masiello, Isabella Anderson and Nina Lassam.

Jonah E. Bromwich covers criminal justice in New York, with a focus on the Manhattan district attorney’s office and state criminal courts in Manhattan. More about Jonah E. Bromwich

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