The shipping industry is highly profitable. That is why it is one of the fastest-growing industries, and with several firms importing and exporting, the need for shipping organizations is also on the rise.
According to Statista, by 2027, the global container shipping industry is predicted to be worth more than $12 billion. Here are some tips to help you start your own shipping business:
Registration
It would be best if you determined the legal identity of the company you are creating. You can start by registering a limited liability company (LLC) and later convert it to a corporation as your business grows. LLCs provide several advantages, including limited liability, the freedom to add new members and businesses, and tax benefits.
You’ll also need some essential legal paperwork, such as a business certificate of incorporation, a business license, a shipping clearance certificate, and insurance in place before you start your shipping business.
You need to have insurance coverage before starting your shipping business. You can contact an insurance broker to help you select an appropriate insurance plan.
Additionally, you’ll need to get relevant certifications. You’ll require accreditations such as Certified International Trade Professional (CITP) and Certificate in Marine Transportation to persuade your customers to use your services.
Strategy
It would be best if you began by accepting small orders and gradually expanded your clientele. This allows you to control the pace and discover how the industry works.
You can start your own business or buy a franchise from a well-established shipping company with a large client base. However, you will be required to share your profits with them or pay them royalties.
Specialization
When you establish a shipping company, you will be moving goods and services to various regions, which means you will have a broad client base spread out across the country.
You can also focus on a specific sort of shipping, such as drop shipment, delivery, or container shipping. This allows you to brand yourself accordingly.
Business Plan
You will need to prepare a detailed business plan to keep you on track and make it easier to obtain funding if you want to establish your own shipping business.
One of the most crucial aspects of establishing a successful shipping company is to write a comprehensive business plan. Your business plan should outline competitors, pricing, target market, unique selling points, and core competencies.
Get Started
We hope these tips were helpful if you want to start a shipping business. However, keep in mind that there are various other aspects you need to consider, such as the mode of transportation (e.g., a vessel) and whether you will require a lumper service.
Good luck!