In international freight forwarding, transactions often involve parties from different countries with varying levels of trust and business practices. Freight forwarders may not have an established relationship with some shipping companies, and without a secure payment mechanism, they may be hesitant to commit large amounts of money upfront. Cargomate helps overcome this trust gap by acting as a neutral third party that ensures both the freight forwarder and shipping company are held accountable to the terms of the agreement.

Transparency: We typically provide real-time tracking and updates of the transaction. Both the freight forwarder and the shipping company can view the status of the funds when needed, giving them visibility into the process. This transparency fosters trust and ensures that neither party feels uncertain about the status of the funds.

For shipping companies, there is often the concern of not receiving payment for freight services after delivering the goods. With our payment service, shipping companies are assured that the funds are secured upfront, and the payment will be made as soon as they fulfill their obligations. This helps reduce the risk of delayed or unpaid invoices, which can impact the shipping company's cash flow.

Reducing Payment Fraud: Freight forwarders may be worried about payment fraud, especially in international shipping. There may be cases where payments are delayed or disputed after goods are shipped, or when the payment method is not secure. Using us ensures that funds are only released once the agreed-upon conditions are met, which protects both parties from potential fraud.

Since payments are held in our accounts until specific conditions are met, shipping companies are motivated to deliver goods on time and in good condition to ensure that the funds are released. This incentivizes better performance and adherence to the agreed terms.

Building Long-Term Relationships: Freight forwarders who regularly use escrow services can build long-term, trusting relationships with shipping companies. Both sides benefit from the security that comes with escrow transactions, and the process can help forwarders establish themselves as reliable and professional partners in the international shipping business.

In many cases, freight forwarders are coordinating between multiple stakeholders—such as shipping companies, customs authorities, port operators, and insurers. Our service can streamline the payment process by holding and disbursing funds to different parties as per the terms of the contract. This simplifies complex, multi-party transactions and ensures that each party is paid as they fulfill their part of the deal.

Cross-Border Payments: Our payment services can simplify international transactions by handling payments in different currencies and jurisdictions, mitigating the complexities of cross-border payments and international trade regulations. For freight forwarders who regularly deal with global shipping companies, an escrow service provides a unified platform for handling payments without the need for complex international banking systems.