In theIn the industry,finding a direct freight forwarder seems to have become the ultimate dream of every foreign trader.After all,a direct freight forwarder means lower freight,more stable shipping space and better service.But the reality is that many foreign traders find that they cant even get in touch with a direct freight forwarder,let alone see their shadow.Today,lets talk about this topic,uncover the hidden rules of the freight forwarding industry,and see how to find a real direct freight forwarder.

Why Cant You Get in Touch with a Direct Freight Forwarder?

First of all,we need to understand a cruel reality: Direct freight forwarders simply disdain to do business with small customers.Why?Because their customer groups are mainly large customers who ship hundreds or even thousands of containers per month.For them,the time and energy spent serving a small customer far exceed the profit obtained from large customers.

For example,assume that you only have 10 containers of shipping volume per month,while most of the customers of direct freight forwarders have a monthly shipping volume of more than 500 containers.For them,serving a customer like you not only means that the workload of documents and operators doubles,but may also lead to an imbalance in their resource allocation.After all,they are more willing to spend time and energy on large customers who can bring them stable income.

The Scale Effect of the Freight Forwarding Industry

The freight forwarding industry is a typical industry withscale effect.For direct freight forwarders,the larger the scale,the lower the cost and the higher the profit.By cooperating with large customers,they can get shipping space at a lower price and reduce the cost per order through batch operations.For small customers,due to the small shipping volume,they cannot enjoy this scale effect,and naturally cannot obtain the services of direct freight forwarders.

For example,assume that a direct freight forwarder gets the base price of a container from the shipping company at $1000,and they charge large customers $1200,with a profit of $200.But for small customers,due to the high operating cost,they may need to charge $1500 to ensure profit.In this way,the price advantage of small customers disappears.

How to Find a Direct Freight Forwarder?

Although it is not easy to find a direct freight forwarder,it is not completely impossible.Here are some practical suggestions to help you gradually get closer to a direct freight forwarder:

1.Increase Shipping Volume

Output:

This is the most direct way.If you can increase your monthly shipping volume to more than 50 containers,direct freight forwarders will naturally be interested in you.Of course,this requires the accumulation of time and resources,but it is a direction worth working towards for long - term development.

2.Join Freight Forwarder Alliances

Output:

Some freight forwarder alliances or platforms will integrate the shipping volumes of small and medium - sized customers to form a scale effect,so as to negotiate better prices with direct freight forwarders.You can consider joining such an alliance to obtain more favorable freight through collective bargaining.

3.Cooperate with Peers

Output:

If you have other foreign trade friends around you,you can consider concentrating everyones shipping volumes to form a virtual large customer.In this way,you can negotiate with direct freight forwarders in the name of the collective and obtain better prices and services.

4.Establish Long - term Cooperative Relationships

Output:

If you can find a reliable second - level freight forwarder and establish a long - term cooperative relationship with it,they may recommend you to a direct freight forwarder at an appropriate time.After all,second - level freight forwarders also hope that their customers can get better services,so as to enhance customer loyalty.

5.Utilize Industry Expos

Output:

Participate in someor foreign trade expos and communicate face - to - face with direct freight forwarders.Although they may not accept your business immediately,at least you can establish initial contact and lay the foundation for future cooperation.

The Invisible Thresholds of Direct Freight Forwarders

Even if you find a direct freight forwarder,it doesnt mean you can easily get their services.Direct freight forwarders usually have some invisible thresholds that you need to understand in advance and be prepared for:

1.Minimum Shipping Volume Requirements

Output:

Direct freight forwarders usually have a minimum shipping volume requirement,such as at least 50 containers per month.If you cant meet this standard,they may not accept your business.

2.Long - term Cooperation Commitment

Output:

Direct freight forwarders are more inclined to establish long - term cooperative relationships with customers rather than doing one - time business.If you only ship occasionally,they may not be interested in you.

3.Payment Terms

Output:

Direct freight forwarders usually require customers to pay the freight before loading,or provideand other guarantees.If your cash flow is not stable enough,it may affect the cooperation.

Conclusion

Finding a direct freight forwarder is not an overnight thing.It requires you to continuously increase your shipping volume,accumulate industry resources,and establish long - term cooperative relationships.In this process,you can gradually get closer to direct freight forwarders by joining freight forwarder alliances,cooperating with peers,etc.