Forwarding, Freight News, IT


Surge in business for compliance firm as US puts the screws on forwarders

[ May 14, 2025   //   ]

CenGlobal is reporting a flurry of contract wins for its international trade compliance software.

The company, which has offices in the UK, Dubai and Manilla, says it has secured partnerships with several logistics firms in recent months as they come under growing pressure to ensure shipments comply with evolving trade regulations.

CenGlobal offers expertise in consulting and implementing compliance-focused logistics solutions for freight forwarders and logistics providers. It predicts that the biggest compliance challenges this year will be anti-money laundering risks and denied party screening, both of which could result in severe penalties or even imprisonment for non-compliance.

In 2023, the US government tightened its shipping security requirements, making freight forwarders directly liable for export control violations. Previously, they were not held responsible for their customers’ actions but NVOCCs and forwarders face the risk of substantial penalties, including fines potentially reaching hundreds of thousands of dollars and even criminal prosecution, if they fail to report customers exporting illegal components to countries like Russia and China.

Managing Director of CenGlobal, Steve Cross, believes that forwarders and logistics providers will be placed under more stringent compliance standards by governments and regulatory agencies this year, saying: “As these issues persist, the introduction of new sanctions will undoubtedly follow suit, and with that comes an added pressure on freight forwarders and logistics providers to stay ahead of regulatory changes – which is difficult enough anyway.

“Reliance on manual processes to screen shipments and verify compliance is no longer sustainable and those days frankly are long gone. In a literal sense, companies simply cannot afford to slip up and with human error, that risk is always there. All it takes it one missed detail or oversight and a business could face severe financial penalties or even legal consequences.”

US forwarder CH Robinson was fined over $250,000 by the Office of Foreign Assets Control (OFAC) after its non-US subsidiaries provided freight brokerage or transportation services to or from Iran or involving Iranian or Cuban goods between November 2018 and February 2022.

CenGlobal says the violations occurred because the subsidiaries’ brokerage management systems had not been integrated into CH Robinson’s system or updated to include the latest sanctions compliance controls.

Cross added: “We have spoken to customers, some of whom are multi-billion-dollar organisations, which are blissfully unaware of compliance issues such as denied party regulations and the corresponding consequences of non-compliance. Ignorance just isn’t an excuse though; adhering to compliance is a crucial component of global trade operations and its importance is only becoming more profound.”

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