By Felipe Quinteros, CEO of International Line
Freight Forwarders, or cargo agents, are a fundamental part of international trade, facilitating connections between markets, industries, and consumers around the globe. While today they represent a highly professionalized and technologically advanced sector, their history is deeply tied to the development of global trade and the evolution of supply chains.
The concept of Freight Forwarding was born in Europe in the 19th century, particularly in England during the Industrial Revolution. At that time, cargo agents acted as intermediaries, helping merchants coordinate the transportation of goods and solving logistical problems in an era when transportation systems were fragmented and inefficient.
Initially, Freight Forwarders specialized in transporting goods via maritime routes, using long-term contracts with carriers to guarantee space on ships. This business model was essential to facilitate trade in a context of rapid industrialization and colonial expansion.
With advancements in transportation systems, including the development of railways and air transport in the 20th century, Freight Forwarders expanded their functions. From mere intermediaries, they began to offer comprehensive services such as warehousing, cargo insurance, and advice on tariffs and customs regulations.
Globalization in the second half of the 20th century marked a turning point for the sector. Economies of scale, the growth of e-commerce, and the increasing complexity of supply chains demanded more sophisticated solutions. Thus, Freight Forwarders evolved into integral logistics companies, adopting technologies like satellite tracking, digital platforms for cargo management, and data analysis to optimize operations.
Chile Connected
In Chile, the Freight Forwarding industry began to consolidate in the mid-20th century, driven by the country’s increasing trade openness. The need to connect Chile with major markets worldwide led to the development of specialized services for coordinating maritime and air transportation.
During the 1980s and 1990s, with the opening of free trade agreements, Freight Forwarders played a key role in supporting the export of products such as copper, fresh fruit, salmon, and wine. During this period, local companies began competing with large international players, adapting to the demands of increasingly sophisticated clients.
Today, Chile is a strategic hub in South America, and Freight Forwarders are essential to maintaining the country’s competitiveness in global trade. The incorporation of technology, sustainability in transportation, and logistical efficiency are central themes for the sector.
Key Challenges
In an era marked by technological revolution and automation, Freight Forwarders must embrace innovation to remain competitive. The integration of tools such as artificial intelligence, blockchain, and predictive analytics systems is not just an advantage but a necessity. These technologies allow for route optimization, interruption forecasting, and real-time traceability management. However, they also require significant investment and the formation of highly skilled teams.
Additionally, there is growing pressure to adopt sustainable practices in a world increasingly demanding environmental responsibility. Reducing carbon footprints, developing greener transportation solutions, and meeting international standards are challenges that require a balance between sustainability and profitability.
Finally, Freight Forwarders face a more competitive and fragmented global market where clients demand not only speed and efficiency but also transparency and flexibility. In this scenario, the ability to adapt quickly to new regulations, resilient supply chains, and fluctuations in global trade will be crucial.
Thus, Freight Forwarders not only face the challenge of adapting to a constantly changing world but also the opportunity to lead the transformation of the logistics industry toward a more connected, efficient, and sustainable future. Their history of resilience and innovation ensures they will continue to be a cornerstone of the machinery of international trade.
