When cargo is transported internationally, there are always two freight forwarders involved. The importer hires a freight forwarder to ship goods from an international origin to the destination country. In this process, the forwarding agent at the cargo’s destination contacts a forwarding agent at the origin to handle the entire process in the exporter’s territory.
In the case of large multinational agents, this process is covered by companies within the same group. In order to give small to medium-sized cargo agents the possibility to be competitive as well, international networks provide them with the opportunity to create international co-operations between agents.
- Advantages of international freight forwarder networks
Global Expansion: International networks allow freight forwarders to ship freight to and from any location, by creating the bridge between agents from several countries. Typically, each network accepts only 2 or 3 agents per country. Thus, there will always be an option to send the cargo to any country in the world.
Regional specialization: There are specialized networks that focus on certain regions of the world. These will connect agents that import and export mostly between specific regions. The benefit is that these agents will have an unmatched level of experience and knowledge than less specialized freight forwarders. They will certainly be able to help you with all the details of the documentation and legislation that applies to the region and country you’re wanting to ship your cargo to. These agents also have long-standing regional partnerships in place, which allows for more affordable prices.
Quality standards: International networks impose extremely strict acceptance criteria. The required information includes data on the company’s financial position, historical data, volume and quality of service. This helps your agent to trust the partner who is handling your shipment. It is not only an advantage for the freight forwarder as it also provides the importer / exporter with the confidence that his/her cargo is in good hands.
Constant update on changes in country-specific legislation and news: Network members have access to a portal where specific information about legislative changes in certain countries can be shared. Furthermore, members frequently share updates on their country’s situation, in order to give everyone, the chance to adapt to more complex periods and anticipate coming challenges. This happens in an organic way, as each freight forwarder contributes with information about their own country.
Risk Reduction: The international network serves as insurance covering cargo and operation. If, for some reason, one of the cargo agents involved in the operation no longer has the financial means to make the due payments, the network itself takes on this responsibility. In this improbable case, the agent will be banned from the network. This significantly lowers the risk of network members. As international payments between agents are also simplified through the network, there is more flexibility to offer a more competitive price.
External tools and partnerships: Last but not least, international networks collaborate with external service providers. The networks establish partnership agreements with logistics technology companies and sub-license products or negotiate discounts and special promotions for their members. This implies that your cargo will be managed more efficiently, easily and with less associated costs.
Oxen Cargo believes in the quality of the members of the three networks it is part of. We are members of three of the best global networks in our industry, with more than 275 highly qualified freight forwarders, covering more than 100 countries and 239 cities worldwide. They are: World-wise Partner Alliance (WPA), X2 Logistics Networks and Carvre Seven (C7)