The Case for Buying Consortia—and What You Need to Get It Right
When freight costs spike and capacity tightens, small freight forwarders face an uphill battle. Lacking the volume of larger players, they’re often stuck with higher rates and fewer space guarantees.
But what if smaller forwarders collaborated?
Across global trade lanes, buying consortia—groups of independent forwarders pooling volume to negotiate rates—are emerging as a powerful strategy. Together, they create leverage, share risk, and compete with the biggest NVOCCs. But it’s not without risk.
đźšš Real Talk: I’ve Been There
I used to work at a freight forwarding company and remember so many conversations with sales and operations leadership about freight costs. They were volatile. Carriers demanded prepayment.
As a naive Controller, I’d ask:
“Then why do we do business with that carrier? Pick another one. Find someone who gives us terms, or better pricing.”
The team was patient with me.
“Angela… it’s not that simple,” they’d explain.
“The customer requires that carrier. Or they’re the only reliable option on this trade lane.”
Still, I pushed.
“So why not switch?”
“Angela, we’re small. We don’t have the volume to negotiate.”
At the time, I thought—wait a minute—we handle 3,000 shipments a month. Isn’t that enough?
Turns out, it’s a drop in the bucket compared to the big guys running 25,000+ per month.
And as a forwarder, it pained me to see us paying thousands of dollars upfront to carriers—knowing we wouldn’t bill the customer for 4–6 weeks, and then they had 30 days to pay.
So not only was it a margin problem, it was a cash flow problem.
A delay in receivables with an advance in payables.
That delta? Brutal.
In hindsight—clear as day—I started thinking about consortia.
Why don’t smaller forwarders team up?
What I’ve since found is: they do. And it’s not just possible—it’s a real strategy.
No, small forwarder “X” won’t get Kuehne+Nagel’s pricing.
But join a consortium—or create one—and suddenly, the negotiation dynamic changes.
🤝 Enter: The Buying Consortium
A freight buying consortium is a strategic alliance where small-to-midsize forwarders pool volume to negotiate better rates and terms with carriers. It’s not a merger—everyone stays independent—but it’s a smart way to punch above your weight.
These groups help level the playing field by:
- Gaining rate and space advantages through consolidated volume
- Reducing risk by sharing capacity and demand forecasts
- Becoming more competitive against global 3PLs and NVOCCs
But it’s not a free-for-all. There are key considerations to get it right.
⚠️ Compliance Matters: Don’t Cross the Line
Consortia must be built with compliance in mind, especially when dealing with international shipping:
- Avoid price-fixing or customer rate discussions
- Don’t enforce exclusivity or restrictive agreements
- Remain operationally separate to avoid antitrust issues
In the U.S., some ocean freight alliances must be registered with the Federal Maritime Commission (FMC). Legal guidance is a must.
🧱 Weakest Link = Group Risk
One unreliable partner can sink the whole ship. If a member:
- Misses payments
- Overbooks and under-delivers
- Mismanages documentation
…it’s not just their issue—it’s a blow to the consortium’s credibility. That’s why:
- Clear SLAs
- Performance metrics
- And a shared code of conduct
are all non-negotiable.
🖥️ The Right Tech Makes It Work: CargoWise One
A smart consortium isn’t just a WhatsApp group—it needs a backbone.
CargoWise One, with multi-org access, is one of the most effective platforms for this kind of collaboration.
It allows:
- Real-time shipment visibility across member companies
- Shared cost allocation for co-loaded containers
- Performance dashboards to evaluate carriers and partners
- Secure permissions, so companies stay independent but connected
Done right, it turns complexity into clarity—and protects the group from risk.
🧠Final Take
Buying consortia aren’t just a workaround. They’re a competitive strategy for forwarders stuck in the gap between ambition and volume. You may never get Maersk’s best rate on your own—but team up, and you’re suddenly in the conversation.
💬 Let’s Talk Strategy
At ALL2S Consulting, we help freight forwarders think bigger—without getting lost in the noise. From evaluating consortium models to setting up CargoWise workflows that support multi-org collaboration, we bring the financial, operational, and compliance insight you need to grow strategically.
Visit www.all2sconsultingllc.com to learn more, or message me directly to start a conversation. Let’s explore how to put structure behind your growth.
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