If you’re a freight forwarder working independently, joining a freight alliance makes a lot of sense. Freight alliances help their members increase their business profitability. As members of international networks, freight forwarders also get access to key industry information. They get to understand how the bigger players operate.

Freight forwarders can even create business connections within these networks to bolster their operations. But, joining a freight forwarder alliance is not easy. While there are many freight forwarder alliances located all around the world, the best ones have strict regulations for members.

Understanding How Freight Forwarding Alliances Accept Members

International freight forwarder alliances are extensive groups of international freight forwarders. The best attracts the best. Hence, to join the best freight forwarder alliances, members have to go through various vetting processes. Why do freight forwarders have to meet these standards to become a part of the alliance? Transparency.

According to key players in the global supply chain, the lack of transparency is the biggest threat to profitability. When there’s no transparency, there’s no accountability. When things go wrong with shipments, end customers usually have no recourse. The best freight forwarder alliances don’t want irresponsible or non-transparent members.

That’s why these alliances enforce the following freight member regulations –

Vetting Before Joining the Alliance

Before joining a freight forwarder alliance, applicants have to fill out various forms. These forms request the freight forwarder’s company details, financial details, track record, etc. After submitting these forms, freight forwarders have to undergo strict screening and vetting processes. These vetting processes are designed to –

• Check the financial stability of the freight forwarder’s company
• Confirm the specific objectives of the applicant’s freight forwarding operations.
• Verify the applicant’s reputation to ensure a high degree of reliability.

When each member of the alliance passes these rigorous screening processes, the overall trust inside the alliance grows. No freight forwarder wants to be associated with professionals who have poor track records or outstanding financial obligations. These types of faults reflect poorly on the alliance.

So, the best freight forwarder alliances always have extremely rigorous qualification processes. These alliances want to maintain high standards for their members.

Acceptance of the Proposal – Joining the Alliance

If you’re a freight forwarder who is new to alliances, don’t expect to climb up the ladder too soon. You’ll have to pay the membership fee. Then, your company’s details will be added to the freight forwarder alliance’s network database. These details are accessible to all members.

Bear in mind – your fellow members will be high-quality freight forwarders themselves. But, once you prove your reliability to the freight forwarder alliance’s administration team, you receive a host of perks. Some of the basic benefits include –

• Assistance with day-to-day business operations via access to the latest shipment tracking/managing software tools.
• Payment protection plans.
• Insurance.
• Marketing services.
• Partner discounts.

While it’s easy to see the advantages of joining a freight alliance, there are several rules you must follow before you can join one. Here are some key points to remember:

1. Be an established freight forwarder with a proven track record
2. Sign contracts with clients for at least 12 months
3. Pay membership fees
4. Follow the alliance’s rules and regulations
5. Abide by the code of ethics set by the alliance

If you can meet all these requirements, it’s likely that your freight forwarder business will benefit from being a part of an alliance.

The quality of benefits depends on the quality of your freight forwarder alliance. The better the quality of your freight forwarder alliance, the stricter the membership rules. Memberships in such alliances come with hefty fees and strict requirements. But, ultimately, these fees translate to direct business advantages.