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What Is the Industry Value of International Freight Forwarders?

At present, most of international freight forwarding companies actually still provide the role of air and ocean freight forwarders, that is to say, what they provide is a trunk transportation agency service.

The core of the existence of international freight forwarders is derived from the opacity of frequent changes in freight rates,large position variables are difficult to guarantee,the transportation chain links are long and complicated,the cargo transportation track is not fully visualized,the upstream and downstream data of the industry has not been effectively opened up,offline transactions are manually reconciled and there are billing periods.


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At present, most of international freight forwarding companies actually still provide the role of air and ocean freight forwarders, that is to say, what they provide is a trunk transportation agency service.


In the entire international logistics and transportation links, the main line transportation cost is often the most expensive part of the entire transportation link. It is also a link with a high degree of cost transparency, the easiest to standardize operations, and a relatively low barrier to competition.


Companies engaged in mainline transportation agents, whether they are air freight agents or ocean freight agents, currently have a deep sense of crisis. The essence of agency is relational business plus strong customer acquisition ability.


From the perspective of the relationship with upstream capacity providers (shipping companies, airlines), we will actually find that the entire upstream capacity provider is undergoing profound changes in terms of informatization and operational efficiency. The expected benefits that business can bring are constantly decreasing, while the cost of maintaining relationships is constantly increasing.


From the perspective of forcibly acquiring customers, we can see that the current traditional freight forwarding companies are mainly sales-oriented companies. Only bringing in customers, pulling the goods, and increasing the quantity.Only with the volume of goods can we better maintain the cooperative relationship with the upstream capacity provider.


At present, in fact, all air and ocean freight agents have found that they are facing fewer and fewer direct factory customers, more and more peer dedicated line customers, the size of individual customers is getting bigger and bigger, and the bargaining power of customers is increasing. The stronger. E-commerce platforms and big sellers are trying to optimize the cost of trunk transportation, and the living space of agents is being squeezed.


Now is a good opportunity to expand customer acquisition channels. Because of the advancement of Internet technology and marketing methods, coupled with the addition of some third-party platform logistics networks, it has expanded channels for international freight forwarders to acquire customers and provided good support.


The settlement cycle of air shipping agents and customers is much longer than that of upstream transportation providers. To some extent, air and ocean freight agents act as a tool for customers to advance payments. This makes the cooperation between international freight forwarders have bad debt risks. At this time, the existence of  finacial protection services of logistic network is needed.


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