Why do smaller carriers in Southeast Asia outperform global giants?
- Smaller freight forwarders in Southeast Asia are rapidly digitizing operations, leveraging tools like web cargo book and rate and quote to deliver customer experiences that often outperform larger, legacy-bound competitors.
- Digital workforces and platforms like WebCargo Pay enable real-time booking, automated workflows, and better cash flow management, giving SMEs flexibility and transparency in fast-growing manufacturing hubs like Vietnam, Thailand, and Malaysia.
- This digital-first approach allows carriers to expand markets, increase freight volumes, strengthen relationships with carriers and set new standards for service, positioning Southeast Asia as a potential global leader in logistics digitalization.
While global freight forwarders grapple with outdated technology and bloated processes, a quiet digital transformation is underway in Southeast Asia. Here, small and medium-sized carriers—many with limited resources—are rapidly modernizing their operations and, in many cases, outperforming their multinational counterparts. In a fragmented and rapidly evolving logistics landscape, scale is not always an advantage. Freight forwarders in Southeast Asia have proven that speed and adaptability can thrive at scale – especially when it comes to digital transformation.
“The cumulative effect is that many smaller shipping companies in Southeast Asia are developing digital customer experiences that rival or exceed those offered by their much larger global competitors, despite having a fraction of the resources,” said Joyce Tai, CEO of Global Partnerships at Freightos. “In digital transformation, agility and market fit are often more important than scale.”
With less regulatory competition and legacy technology stacks to erode, these players are quick to adopt digital tools. Platforms like WebCargo Book and WebCargo Price and Quote are used not as future investments, but as necessities in the present.
The digital native workforce
A generational shift is also fueling the movement. With digital-first professionals entering the shipping industry, digital booking tools and pricing are no longer seen as optional, but rather expected.
“Unlike their predecessors, they embrace digitization deliberately, making platforms like WebCargoBook not only useful, but second nature,” said Tai.
This shift is particularly evident in manufacturing hubs such as Vietnam, Thailand and Malaysia, where local carriers are responding to exporters’ growing demand for faster and more transparent logistics services. What was once a manual, email-heavy process is quickly becoming a real-time, automated experience.
Fintech meets shipping
While technology adoption is accelerating, financial constraints remain an obstacle – especially for small businesses dealing with cash flow. This is where tools like WebCargo Pay are resetting the playing field.
“Web Cargo Payments’ unique strength in Southeast Asia comes from addressing the unique financial and infrastructure challenges of emerging markets while adapting to digital consumer behavior in the region,” said Tai.
By removing funding barriers, eliminating cash constraints, and improving transaction visibility, WebCargo Payments allows small shippers to provide better service and compete with more confidence.
“Shippers are responding with strong confidence, citing excellent service experiences, greater transparency, and a sense of genuine friendship,” she added. “All of this gives small carriers a competitive advantage.”
Good work from the old guard
The results are remarkable. Freightos has seen freight forwarders use real-time pricing and booking tools to expand into new markets, increase freight volume, and build stronger relationships with shippers.
“WebCargoThai has helped freight forwarders in Southeast Asia increase volume, accelerate bookings, and manage cash flow more efficiently, while strengthening their relationships with shippers,” said Thai. “We’ve seen freight forwarders use instant dynamic pricing and bookings to quickly enter new markets, expand volume with confidence, and demonstrate the credibility that they’re winning more freight business.”
At the same time, large global companies – many of which are tied to legacy systems and slow-change projects – are struggling to keep pace. What is considered “added value” in customer service is quickly becoming the primary expectation.
Strategic imperative
What’s happening in Southeast Asia is more than just a regional development, it’s a test case for the global industry. Creating digitally agile SMEs is redefining the meaning of service, speed and transparency in shipping.
“Over the next three to five years, Southeast Asia will emerge as a global leader in the adoption of digital logistics, potentially overtaking other established markets,” Thai noted. Tai noted. “Freightos is positioned to play a key role in this transformation by providing the digital infrastructure, market connectivity and standardization needed for the region to realize its potential as an integrated and efficient logistics powerhouse.”
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