Invisible mechanism: how freight forwarders build an edge through network effects
In the transport and freight forwarding industry, competitive advantage is often assessed through measurable indicators—revenue scale, number of shipments, profitability, or geographic reach. Yet behind these figures lies a mechanism that constitutes one of the strongest assets of market leaders: network effects resulting from relationships with carriers operating in the spot market.
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Invisible mechanism: network effects as an advantage
Network effects are an invisible but real source of advantage in freight forwarding—the larger and denser the carrier network, the greater the forwarder’s business efficiency. Transport platforms (e.g., Trans.eu) are becoming a strategic tool for freight forwarders, enabling dynamic matching of loads and reducing empty runs.
The density of a spot carrier network—both geographically and over time—translates into lower costs and higher margins. Combining the spot market with contracted freight provides greater flexibility and resilience to market fluctuations. A data-driven approach increases the operational and sales effectiveness of freight forwarding companies.
The digital revolution in logistics—especially platformization—is attracting the attention of investors and customers. The data is clear: more than 30% of freight forwarders indicate that 40–60% of transport orders in their companies are handled via transport platforms. Another 30% report 20–40% of all orders.
For many market participants, these types of tools are precisely the source of competitive advantage. However, the tools are widely available. Software can be purchased, licensed, or developed in-house. The true advantage does not lie in the platform itself, but in the network of carriers that the platform connects, and in the quality of the relationships formed within it.
It is this network—hidden in financial reports and not captured by traditional KPIs—that creates a competitive mechanism similar to what is known from consumer platforms (Uber, Airbnb), but operating in the specific B2B environment of freight forwarding.
Network effects in freight forwarding
A network effect in logistics emerges when the value of a platform grows in proportion to the number of users on both sides of the market. In freight forwarding, we are dealing with a so-called two-sided network effect: the more shippers (load providers) there are, the more carriers join; the more carriers there are, the more attractive the platform’s offering becomes for customers placing orders. This mechanism strengthens with every completed transaction.
A key driver of this dynamic is the spot market. As shown by data presented by Transporeon and Trans.eu, spot rates on Europe’s main transport corridors are higher than contract rates. This is driven, among other factors, by reduced transport capacity and the shift of part of the contracted volumes to the spot market.
In this context, freight forwarders’ advantage does not stem solely from having access to spot carriers, but from how dense, efficient, and intelligent that network is. Network density means the number of carriers available on specific routes, the speed at which loads can be matched to vehicles, and the ability to reduce empty mileage.
The value of a spot-carrier network
Let’s look at the scale of the phenomenon using market leaders as examples. C.H. Robinson, a well-known U.S. logistics operator, manages a network of 450,000 contract carriers. It offers them volume aggregation and demand-smoothing across a broad network of shippers. As a result, carriers receive a more predictable flow of freight, enabling them to offer competitive rates while maintaining high efficiency.
Uber Freight, a digital freight forwarding operation, reported payouts to carriers of nearly USD 850 million in 2024. According to official information, the company provides carriers with access to high-quality loads from vetted counterparties, including through short-term contracts. Algorithmic load bundling available on the platform can reduce empty miles by approximately 22.6%.
In the European market, Trans.eu offers solutions that automate processes and help users make better use of their own network of transport companies, with additional access to 25,000 active spot carriers across the EU, providing broader capacity coverage. In this respect, the quality of capacity offered by Trans.eu differs from a traditional freight exchange, because it provides access to a base of verified companies from countries that are heavily transport-oriented—operators that handle half of EU transport volumes and run long-haul routes. Many of these firms have large and diverse truck fleets.
According to research, carriers using spot platforms achieve a 20% increase in capacity utilization, which translates into lower costs and higher revenues. These figures illustrate something fundamental: the value of the network grows faster than the number of its participants. The more carriers and shippers, the more route combinations become possible; the lower the frequency of empty runs; and the higher the margins.
Long-term relationships vs. the spot market
A common mistake in analyzing the freight forwarding market is treating contract relationships and the spot market as two separate worlds. Meanwhile, the data shows that four times as many forwarders combine spot activity with contract business as those who focus exclusively on the spot market.
Long-term relationships with carriers deliver measurable benefits: 20% higher first-offer acceptance, 15% better on-time performance, and 10% fewer claims (including thanks to the use of carrier rating systems).
However, it is precisely the flexibility of the spot market—its ability to respond dynamically to demand fluctuations—that is key to building advantage. According to McKinsey, the ability to react in real time to changes in the supply chain enables 15–20% cost savings compared with traditional long-term contracts.
Data as an invisible layer of competition
Every transaction within a spot network generates data: transit times, costs, carrier availability, market rates, punctuality, claims. Aggregated and analyzed, this data creates something that cannot be bought or copied—institutional intelligence.
Adopting a data-driven approach within companies (making business decisions based on data and facts rather than intuition) increases, for forwarders, the likelihood of acquiring customers by 23x, retaining them by 6x, and achieving profitability by 19x.
Logistics platforms that collect data from tens or hundreds of thousands of transactions can offer predictive forecasting, dynamic matching of routes and carriers, and automated optimizations—reducing the time needed to prepare a quote.
What does this mean for the industry’s future?
Network effects in freight forwarding are, in a sense, an invisible mechanism that does not appear in traditional efficiency metrics. You won’t find it on the balance sheet or in quarterly reports, yet its impact on a company’s competitiveness is real, measurable, and durable.
As transport and logistics move through digital transformation, forwarders who understand and invest in building dense, intelligent carrier networks will outperform those who focus only on traditional indicators. Technology is a tool—but the network is the foundation.
For decision-makers in freight forwarding companies, this means going beyond standard financial reporting and asking questions about:
- the number of active carriers in the network,
- its geographic density,
- capacity utilization rates,
- empty-mile data,
- and long-term relationships with key carriers.
These metrics may prove to be better predictors of future market position than traditional profitability measures. For those who can see this invisible layer of competition, new perspectives open up—helping explain why some players grow faster and capture larger market shares.
Conclusions
In freight forwarding, durable competitive advantage is increasingly built not only through scale, contracts, or coverage, but through network effects—especially the density and quality of spot-carrier relationships. Platforms can be purchased; networks cannot. The forwarders that systematically grow their carrier ecosystems, combine spot with contract business, and turn transaction data into institutional intelligence will be better positioned to manage volatility, reduce empty mileage, and defend margins. In a market where technology is becoming standard, the network becomes the differentiator.
Sources
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- Szałek J., Szymański M., Rynek transportowy 2024/2025. Wnioski | Prognozy | Wyzwania, Trans.eu, 2024 (accessed 15.12.2025)
- C.H. Robinson press materials, C.H. Robinson announces 2024 carrier of the Year Award Winners (accessed 15.12.2025)
- Heilmann K., How efficient load matching can reduce deadhead miles in trucking, Medium, 2020 (accessed 15.12.2025)
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