How to start a freight forwarding company

Starting your own freight forwarding business is a big move, but if you’re organised, informed, and willing to build relationships, it can be a highly rewarding venture. With global supply chains always in motion, there’s strong demand for reliable operators.

In this guide, we’ll walk you through how to start a freight forwarding company in the UK, covering everything from legal setup to finding clients and building long-term success.

What is freight forwarding?

Freight forwarding is all about arranging the safe, efficient movement of goods from one location to another, often across borders and using multiple types of transport.

Freight forwarders don’t carry the goods themselves; instead, they coordinate with haulage carriers, handle paperwork, and manage logistics from start to finish. It’s a service-based role that sits at the heart of the supply chain.

A good freight forwarder simplifies complex movements, ensures goods arrive on time, and solves problems when delays or issues come up. They deal with customs, documentation and risk management, freeing up businesses to focus on selling, not shipping.

It’s also helpful to understand the differences between freight brokers and freight forwarders, especially if you’re planning to specialise. While there’s some overlap, brokers mainly match loads with carriers, whereas forwarders manage the full logistics process.

Before diving into the practical steps of how to start a freight forwarding company, it helps to know what clients actually expect from each.

The freight forwarding business model

Before launching your company, you’ll need to understand how freight forwarding businesses actually make money.

Most forwarders earn through service fees or margins added to transport and handling costs, depending on the scope of the job. Some specialise in international freight while others focus on local or industry-specific logistics.

If you’re learning how to start a freight forwarding business from scratch, it’s smart to decide early whether you’ll operate independently or partner with existing carriers and agents. Some forwarders offer added services like warehousing, customs clearance, or digital tracking tools to boost value.

You can also gain insight from related industries by looking at what’s involved in starting a haulage company. 

Most new businesses start with smaller contracts or niche sectors, building trust and relationships over time. Keeping your overheads lean and using digital platforms to find work can help you stay competitive in the early stages.

Let’s look at your legal setup next.

Sole trader vs limited company

One of your first decisions will be choosing a legal structure. In the UK, most freight forwarders start as either a sole trader or limited company.

Each option comes with pros and cons:

• Sole trader: Simple to set up, with minimal admin. You keep all the profits but are also personally liable for any debts or legal issues. This setup is ideal if you’re starting small and want flexibility with fewer reporting requirements.
• Limited company: Offers legal separation between you and your business, which can reduce personal risk. It may also seem more professional to clients and comes with tax planning advantages. You’ll also find it easier to bring in partners or apply for finance later on.

When deciding, think about how much liability you’re willing to take on, whether you’ll need to raise capital or hire employees, and how you plan to grow your freight forwarding business in the long term.

The structure you choose now might change as your freight forwarding company develops, but it’s worth getting the setup right from the start.

Do your research first

Before you start buying business cards and software, you’ll need to do some proper research to fully understand what’s required when starting your own freight forwarding company.

1. Analyse industry trends and opportunities

The freight industry is evolving fast, driven by shifting trade routes, rising e-commerce demand, and the pressure to streamline operations.

While global freight volumes continue to grow, clients are also expecting more transparency, flexibility, and digital access. That creates plenty of space for new freight forwarders who are tech-savvy and service-focused.

One key trend is the rise of digital platforms that simplify the process of finding work and managing loads.

For new businesses, tools like transport bidding offer a flexible way to access available jobs, fill return journeys, and stay efficient without relying on long-standing contracts. These platforms are especially useful when you’re still building your client base.

There’s also growing demand for forwarders who specialise, whether by region, cargo type, or industry. From cold-chain logistics to small parcel forwarding for e-commerce sellers, niche services can help you stand out in a crowded market.

Keeping an eye on regulation, sustainability, and automation trends will help you stay competitive long-term.

3. Develop a detailed business plan

A strong business plan gives your company structure, focus, and a clear path to follow.

It’s not just for securing funding; it also helps you make informed decisions as you grow your freight forwarding company. Whether you’re going solo or aiming to scale, this document should evolve with your business.

Start by outlining your core services. Will you specialise in air freight, container shipping, or local deliveries? Define your niche based on your experience, partnerships, or the needs of your target market.

Include a competitive analysis so you know what you’re up against. Research other freight forwarders in your area or sector and note what they’re doing well and what they’re not. This helps you shape your own value proposition and highlight what makes your service different.

When mapping out your customer base, consider:

• Size and sector: Are they small importers, manufacturers, or retailers?
• Location: Will you focus on domestic clients or international trade lanes?
• Pain points: What challenges do they face that you can help solve?

Finally, set realistic goals for your first year. These might include revenue targets, monthly shipments, or client retention rates.

Support these with estimated expenses, income projections, and a plan for how you’ll adjust if things shift.

4. Plan your budget and identify startup costs

Starting a freight forwarding company doesn’t have to break the bank, but it’s important to understand your upfront and ongoing expenses.

Being realistic with your budget from day one helps you avoid cash flow problems and build a more sustainable operation. Many first-time operators underestimate what it takes to get going.

Your initial costs will vary depending on whether you’re working from home, renting office space, or investing in software and systems straight away. Common startup costs include:

• Business registration and legal setup
• Insurance (public liability, professional indemnity, goods in transit)
• Office equipment and communication tools
• Freight management software or subscriptions
• Marketing materials and a basic website
• Professional services, like accounting or legal advice

Once you’ve launched, your ongoing expenses will depend on how you run your business.

You may need to cover subcontractor payments, customs handling fees, warehousing, or staff wages. Keep a buffer for unexpected costs, especially in the early months.

If you’re learning how to start a career as a freight forwarder and want to go out on your own, keeping overheads low is key. Starting lean lets you build up slowly without relying on loans or outside investment.

Just make sure you’re still delivering a professional service your clients can trust.

5. Understand the legal and regulatory standards

Freight forwarding businesses in the UK must follow a mix of local and international regulations, depending on the services they offer.

Even if you’re not physically moving goods, you’re responsible for the paperwork, customs procedures, and legal compliance surrounding each shipment. If you fail to meet the right standards, expect delays, fines, or loss of client trust.

You’ll need to understand basic customs procedures and international trade rules, especially if you’re dealing with imports or exports. That includes knowing how Incoterms work, how to handle HS codes, and when duty or VAT is applied.

Staying up to date with UK border policies post-Brexit is also important. It’s a good idea to familiarise yourself with:

• The UK Trade Tariff
• HMRC customs declarations processes
• Incoterms and international shipping conventions
• Any restrictions on goods (e.g. banned items or controlled substances)

You don’t need to become a customs expert overnight, but you do need to know where your responsibilities begin and end. You might choose to handle some parts of compliance yourself, or work with agents who specialise in customs clearance.

Either way, building your knowledge before you start a freight forwarding company makes your service more reliable and trustworthy.

6. Consider necessary licences and permits

One thing to note when you learn how to start a freight forwarding business in the UK is that you don’t need a specific freight forwarder licence to operate.

However, that doesn’t mean you can skip formalities altogether. Depending on your services, you may need to register for certain authorisations or partner with licensed agents.

If you plan to offer customs brokerage in-house, you’ll need to register with HMRC as an authorised customs agent. You’ll also need to handle things like EORI numbers, VAT registration, and possible sector-specific requirements depending on what you’re shipping. For example, some goods like food, pharmaceuticals, or chemicals have their own regulations.

Even without licensing, having the right cover in place is non-negotiable. Freight forwarder insurance is essential for protecting against loss, damage, or legal claims if things go wrong. This often includes public liability insurance, professional indemnity, and cargo cover.

Having these basics in place shows clients that you take your responsibilities seriously. It also helps you work more confidently, knowing you’re protected if a shipment gets delayed or something goes missing.

If you’re unsure, speak with a broker who understands freight and logistics operations.

Launch your freight forwarding company

Before you dive into daily logistics tasks, there are a few basic steps to start your freight forwarding company off on the right foot.

These steps are practical, straightforward, and give you a working foundation before you start scaling.

1. Choose your business name and branding: Pick a name that’s professional, easy to remember, and works well for digital marketing. Check that the domain name is available and secure your social media handles. You don’t need fancy branding from day one, but having a clear identity builds trust from the start.
2. Register your business and open a bank account: Once you’ve settled on a structure, register your business with Companies House or HMRC. Set up a dedicated business bank account to keep finances separate and professional. This will make accounting, invoicing, and tax reporting much easier later on.
3. Set up communication and admin systems: Secure a business email, phone number, and cloud storage for managing client files. Consider simple accounting software or spreadsheets to track quotes, invoices, and expenses. These tools will help you stay organised and responsive as jobs start rolling in.
4. Start building carrier and warehouse relationships: Reach out to local hauliers, customs brokers, and warehouse providers to begin forming partnerships. These contacts will help you fulfil client needs and offer more complete services. You don’t need a huge network to begin just reliable starting points.
5. Run trial jobs or a soft launch: If possible, manage a few initial shipments to test your processes and customer comms. This gives you a chance to fine-tune workflows and identify any gaps in your setup. A soft launch builds confidence before you start promoting your services more widely.

Utilise freight management software

Technology plays a big role in running a smooth and efficient freight forwarding business.

Even as a small operator, using the right digital tools helps you save time, reduce errors, and stay competitive. From quoting and tracking to managing paperwork, software makes the job much easier.

At the very least, you’ll want tools to help with:

• Shipment tracking: So you and your clients can monitor goods in real time
• Document management: To handle customs forms, invoices, and proof of delivery without drowning in paperwork.
• Rate quoting and invoicing: Making it faster to respond to client enquiries and process payments.
• Client communication: Keeping everything clear and timely, especially when delays or issues come up.

Many freight forwarders also use load boards or freight exchange platforms to find available jobs and reduce empty runs.

These tools are especially helpful when you’re just getting started and don’t have a full client base yet. They let you stay busy while you build longer-term relationships.

As your business grows, you can scale up with Transportation Management Systems (TMS), route optimisation software, or CRM platforms to manage leads and bookings.

Get started in freight forwarding with what you need now, and upgrade as you go. Choosing the right tech early on helps create a more streamlined operation from day one.

Build your network of clients

Clients are the backbone of your freight forwarding business, so building strong, long-term relationships should be a top priority.

Start building relationships from day 1

Whether you’re reaching out to small importers, manufacturers, or growing e-commerce stores, the goal is to become their go-to logistics partner. Start your freight forwarding company small, build trust, and deliver consistently.

Networking plays a huge role in this. Connect with potential clients at industry events, trade shows, or through logistics directories and LinkedIn. You can also find early work through digital platforms or by forming partnerships with other operators.

To grow your network, consider:

• Reaching out to local businesses that rely on regular freight but may not have dedicated logistics support.
• Joining trade associations or freight communities where referrals are common.
• Asking satisfied customers for testimonials or introductions to other businesses in their network.

Relationship-building takes time, but consistency and reliability go a long way. The more responsive and professional you are, the more likely clients will stick with you and recommend you. It’s not just about getting work, but keeping it and if you’re figuring out how to start a freight forwarding business, building loyalty is just as important as landing your first job. 

Develop a marketing strategy

Once you’ve got your initial clients in place, you’ll need a marketing strategy to continue attracting more over time. Marketing doesn’t need to be complicated, but it should be consistent.

Here are some proven strategies to help you grow:

• Build a simple, professional website: It should clearly explain your services, include contact info, and work well on mobile. Even a basic site helps build trust and gives prospects a place to find you.
• Use Google Business and local SEO: Registering your business on Google helps you appear in local searches. Add reviews, photos, and keywords related to freight services in your region.
• Leverage LinkedIn: Connect with businesses in your area, join logistics groups, and share updates to stay visible. It’s especially useful for finding B2B clients and building authority.
• Create helpful content: Write short guides, FAQs, or tips about freight forwarding. This helps position you as knowledgeable and trustworthy even if you’re still growing.
• Ask for referrals: Happy clients are often happy to recommend you. A simple follow-up message after a job can open doors to new contacts.
• Get listed on directories or marketplaces: Appear on freight networks, industry directories, and digital exchanges. This increases your visibility and lets potential clients find you when they need a reliable partner.
• Use email for client updates and follow-ups: Send friendly reminders, service updates, or check-ins to stay top of mind. It shows you’re proactive without being pushy.

You don’t have to do all of these at once, of course. Start with the basics. Then, build momentum and double down on what works best for your market.

Keep your clients with strong customer service

Great customer service is one of the fastest ways to stand out in the freight industry.

Clients remember how problems are handled, not just when everything goes to plan. The goal is to be reliable, responsive, and easy to work with especially when things get busy.

Start by setting clear expectations upfront. Be honest about lead times, pricing, and what’s included in your service. If something changes, communicate quickly and clearly to keep your clients in the loop.

You can build trust by:

• Responding promptly to emails, calls, or issues don’t leave clients guessing.
• Keeping records organised so you can find information fast when they ask for updates.
• Following up after deliveries to make sure everything went smoothly and gather feedback.

Attracting new clients often comes down to reputation. People want to work with businesses that are responsive, dependable, and solution-focused.

If you deliver consistently and stay easy to contact, you’ll get repeat work and referrals over time.

Frequently asked questions