Any industry where hundreds of thousands of pounds worth of goods are moving around is a target for scammers. While everyone in the industry works diligently to keep the world of freight forwarding and logistics as safe as possible, there’s no denying the fact that with such a tempting prize, scammers will try everything they can to get their hands on cargo shipments.

What can be done? Being aware is a key skill – as they say, forewarned is forearmed. Working with a trusted and reliable company such as us at Millennium Cargo also helps.

Here’s our guide to freight scams and how to avoid them.

The UK’s Most Common Freight Scams

Want to know what people get up? Here are some of the things we’ve seen (or at least heard about!):

The “Too Good to Be True” Quote

This is a classic scam (and not just in the logistics industry). Here, a dodgy freight forwarder (FF) offers a quote that undercuts the competition by a significant margin – it’s too good to be true!

It’s easy to be enticed by the savings, and while you’re looking at it thinking there must be something wrong, you can’t find the problem – until it’s too late.

These low prices won’t include some critical fees. Perhaps the storage costs are ‘extra’, or the fuel surcharges have been missed off, maybe the customs clearance duties are ignored… and when your shipment is already underway, you find out there’s more to pay. It could even be worse, and your cargo could be held hostage until you pay whatever exorbitant fees the FF comes up with. You’re left with little choice and paying up fast is the only way to get your goods to where they’re meant to be and wash your hands from the whole thing, writing it off as a ‘learning experience’.

The Phantom Forwarder

Worse than paying someone who overcharges after the deal is done, is giving your money to a ghost. For phantom freight forwarders, it’s easy to set up a front that looks completely legitimate – a first-class polished website, some professional-looking email addresses, and fake social media accounts with some great chatter and testimonials.

Then they come seeking, targeting small-to-medium businesses with competitive quotes (not quite as good as the ‘too good to be true’ people, but enough to secure your business) and then, once the payment has been made, they’re gone… vanished into the night, along with your money and your cargo.

For the unlucky businesses caught out by a phantom, there’s often no way to recover the goods or the money lost.

The Bait and Switch

This is a simpler scam, where the FF initially offers you a high-quality service using premium carriers, only once you’ve signed up, they switch to a sub-standard and unreliable option – cheaper for them, far worse for you.

This means cargo gets delayed, damaged, and sometimes stolen – and once more, there’s little you can do about it, as you fight obstinate customer service representatives who claim innocence or a lack of understanding and definitely don’t want to reimburse you.

The Double-Broker

Similar to a bait and switch combined with outright fraud, a double-broker has a scammer acting as a legitimate FF to obtain your business, and then subcontracting the entire job to a low-rate, low-quality carrier without ever telling you. Often, this subcontractor isn’t given all the details of the shipment, and the whole situation becomes a tangle of delays, disputes, and even lost cargo.

And, like a ghost, the original fraudster disappears, unconcerned by the mess they leave behind.

The Documentation Deception

Here, the essential documents are tampered with – often to secure third-party funding for the scammers or to claim ownership of the cargo. The shipment leaves your hands on shaky ground, exposing your business to both legal and financial risks as the documents no longer properly match the contents. Plus, when the fraud is discovered, it’s your name and signature on the paperwork.

The BOL Ransom

The Bill of Lading (BOL) is your proof of ownership and the all-important ticket for releasing the goods once they get to their destination. Unscrupulous companies and scammers can demand more money before releasing the BOL, holding it hostage and causing significant disruption for your entire supply chain while you debate paying the ransom or not. Without the BOL, your cargo is stuck in limbo, unable to be delivered.

The Cargo Heist

Probably the most obvious type of freight issue is the straight-forward heist. With a range of high-tech equipment and sophisticated techniques, this can involve anything from breaking into a warehouse, intercepting goods at ports, or hijacking a truck.

In 2023, a man stole 200,000 Cadbury’s Creme Eggs from a UK warehouse using a tractor, an angle grinder, and a lot of confidence.

Proactive Steps to Avoid Scams

So, how do you avoid being the victim of a freight forwarding scam?

Research in full – Don’t just go with the first FF that you come across, spend the time it takes to dig into them as a business, reading recommendations and testimonials (not just the ones on their website!), and evaluating their credentials and industry reputation.

Verify everything – Never take their word for it. Independently check things like contact information, insurance, and licensing.

Use secure payments – Letters of Credit and escrow services add a layer of financial security to the transaction, making your money a lot safer. Avoid ever making an upfront payment or wire transfer to a company you are not experienced in dealing with.

Get it in writing – Make sure that all agreements and terms of the shipping are clearly documented in a written contract. And read that contract, don’t just skim over it assuming it’s all good.

Trust your instincts – If something feels off, or too good to be true, it probably is. Ask questions if you have them, get them to clarify anything you’re not comfortable with, and walk away if you’re not happy.

Always check incoming emails – Finally, don’t trust an email just because it looks good (scammers know how to do email marketing, too!). Hover over the sender in your email program and check that the email really came from the place you think it did. Make sure all communication is legitimate.

The Benefits of Working with Millennium Cargo, A Reputable Freight Forwarder

Of course, we’re reliable and legitimate – after all, we’ve written this great informative article, right?

Don’t trust it! Anyone could have written this! At Millennium Cargo, we’re a reputable FF with a proven track record of reliability and transparency, so please, dig around and make sure for yourself. We’ll answer any question you have and help you feel comfortable working with a legitimate freight forwarder.

We offer:

Reliability and trust

Industry expertise

Secure operations

A focus on our customers

And we invite you to research us to make sure of it.

While freight scams are a real threat, with awareness and proactive measures, you can protect yourself from becoming a victim. Millennium Cargo is your trusted partner, here to work with you to navigate the complexities of international shipping. We’ll make sure your cargo and finances are safeguarded every step of the way. Contact us today.