How to Optimize Your Profit Margins as a Freight Forwarder

Maintaining healthy profit margins as a freight forwarder is the most important part of running the business. The increasing commoditization of all types of logistics services and general market instability (like the Hanjin crisis and volatility in ocean shipping rates) are two big challenges that make this easier said than done.

This is nothing new to any LSP, but many still think about profit margin in too simple of terms. Margin is more than the difference between buy and sell rates and accounting for other hard costs like payroll and overhead.