Running a transport company means constantly balancing punctuality, profitability and legal compliance. In this sector, where time, precision and trust are essential, even a single mistake or oversight can wipe out the profit from an entire contract. Even experienced carriers and freight forwarders face risks – that is why we highlight the most common pitfalls facing transport companies and explain how to avoid them effectively.
1. Fraudulent contractors and transport scams
The transport and logistics sector has been a target for fraudsters for many years. There is a rising trend of cases where fake clients order transport services, fraudulent drivers are assigned and the cargo disappears without a trace. Such scams often happen on freight exchanges and during international transport.
How to reduce the risk
✔️ Always verify business partners – check tax numbers, company registers, debt databases and industry reputation
✔️ Never accept advance payments or share sensitive documents, such as vehicle papers, before properly verifying new clients
✔️ Confirm all agreements in writing – clearly define liability, delivery terms, handover procedures and claims processes
Important The CMR Convention (Article 4) allows transport terms to be agreed in writing – accurate documentation is the first line of defence against fraud
2. Unintentional breaches of regulations – working hours, cabotage, documentation
Even experienced operators can unknowingly break the law in international transport. Outdated knowledge of the Mobility Package, cabotage limits or working time regulations can lead to serious penalties.
How to stay compliant
✔️ Provide regular training for drivers and dispatchers on working hours, tachograph use and cabotage rules
✔️ Use reliable software to monitor working hours and analyse tachograph data
✔️ Stay updated on legal changes – for example, breaching cabotage rules can result in high fines and, in some countries, a temporary suspension of transport operations, depending on the decision of the authorities (according to EC Regulation 1072/2009 and national laws)
3. Documentation errors – CMR consignment notes and transport orders
Incorrect or incomplete transport documents often lead to disputes over liability, damage claims and payment delays.
Best practices
✔️ Complete every CMR consignment note carefully – double-check consignor and consignee details, cargo description, weight and any remarks about the goods’ condition
✔️ Keep copies of all CMR documents and delivery confirmations
✔️ Implement clear documentation procedures in your company – never rely solely on the driver
In practice, Missing signatures or incorrect details on the CMR make it harder to claim compensation
4. Late payments and cash flow problems – financial pitfalls facing transport companies
Late payments pose a significant threat to the financial stability of small and medium-sized transport companies. Even with a high volume of transport orders, a company’s cash flow may suffer if payments are delayed.
How to protect your finances
✔️ Use payment tracking systems and automatic reminders
✔️ Check the financial status of new clients – use credit reports and debt registers
✔️ Act quickly on overdue payments – use debt collection services or consider selling receivables on debt exchanges
5. Verbal agreements – no written confirmation of transport orders
It is still common to accept transport orders by phone or messaging apps without written confirmation. This creates risks – in disputes, proving terms or demanding payment is difficult.
Recommendations
✔️ Always confirm transport orders in writing – by email, TMS platforms or freight portals
✔️ Clearly define the service scope, payment terms, deadlines and liability for each order
6. Inadequate or insufficient insurance cover
Carrier liability insurance (OCP) is standard, but many policies exclude key risks such as theft from unsecured parking areas, cargo damage during loading or transporting high-value goods. Yet, insufficient insurance remains one of the most underestimated pitfalls facing transport companies, exposing businesses to serious financial risks.
How to secure proper cover
✔️ Review your insurance policy regularly – check exactly what is covered and excluded
✔️ Adapt your insurance to the type of cargo and your business operations
✔️ Consider extra cover – for example, extended OCP for theft or separate CARGO insurance for transported goods
Pitfalls facing transport companies – prevention always costs less than the consequences
The transport sector leaves no room for costly mistakes, but many risks can be avoided with proper planning and prevention. Understanding the most common pitfalls facing transport companies is the first step towards protecting your business. The rule is simple – prevention always costs less than dealing with damage or legal issues.
To minimise the pitfalls facing transport companies, every business should
✔️ Verify business partners thoroughly
✔️ Ensure correct documentation and clear procedures
✔️ Stay informed on legal and regulatory updates
✔️ Invest in staff training and digital tools
✔️ Adapt insurance policies to your business needs
Running a successful transport company is not just about moving cargo – it is about managing risks and responsibilities. This is the only way to build a stable, profitable and resilient business in the TSL industry.
