What Are the Red Flags of Freight Forwarding Companies, and How Can You Avoid Them?

The freight forwarding company you choose will have a massive impact on the supply chain management of your business. This means that you need to make sure you’re selecting a freight forwarding company that is not only capable of fulfilling its promises but also its responsibilities. This process is imperative, and even a minor breakdown can affect the reputation and profits of your business.

But as the market is saturated with different types of freight forwarding companies, you need to look for the red flags that will determine that the company is not perfect to go with. We will also discuss how you can avoid them.

The Rates Are Too Low 

If you think a freight forwarding company is offering too cheap rates, keep in mind that it’s too good to be true. Many scamming companies in the market will offer you low rates just to make you sign with them. The company’s price structure might seem super tempting, especially when you compare it with the market. They will also provide you with different kinds of explanations about why they are offering low rates.

But keep in mind that increasing fuel and driver costs is also boosting freight forwarding companies’ costs. Therefore, if you’ve come across a company that offers super cheap price rates without affecting their revenue, they might be planning to scam and run away.

This is why you should always conduct research before accepting freight quotes. Consider taking some time and finding a couple of other quotes to know the current market price. This way, you can choose the perfect logistics and shipping company.

Fuel Advance Fraud 

This is one of the most dangerous red flags you need to look for. Fuel advance is also one of the most common frauds in the shipping industry. In this fraud, a third party will claim that they represent the freight forwarding company to the unsuspecting clients. This party will try to sell the services of the company to you for a higher price.

To achieve this, the scammer will gather the necessary documents from the actual carriers. After that, they will forge them to make it look like they are representing the company. Once they pick up the load, they will fix the essential information from the freight forwarding company. After that, they will request a fuel advance, and you’ll be scammed if you pay for it. As per Consumer, scammers might put pressure on you to act immediately.

This is why you should always check the freight forwarding company’s credentials before signing the contract.


Even though a freight forwarding company won’t have the same review as the other business industries, you should focus on the legit reviews while determining the company’s professionalism.

Consider checking the customer testimonials as well as their websites. You also need to check their social media profiles. If you don’t find reviews, it will indicate that the company is fraudulent. On the other hand, if you find all 5-star reviews, they might be nothing but fakes.


These are the red flags you need to look for in freight forwarding companies. What are your thoughts? Make sure you let us know in the comment section below.

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