Terminology in the world of shipping can be confusing. For example, the freight forwarding business employs almost 400,000 people in the US alone. But people often wonder how this industry differs from logistics.
Your company wants to ship goods across the country. But you aren’t sure which service is suitable. Well, keep reading for a freight forwarder definition that will explain the difference.
Let’s say your company needs to ship products to places around the world. A logistics company is a trucking service that moves goods. They generally own all the equipment needed for transport.
Freight forwarding companies use a network of trucking companies to make shipments efficient. For example, your shipment needs to travel a long distance on various modes of transport. Therefore, freight forwarding services find the best carrier for the job.
A logistics service may be able to perform every aspect of the shipment. The trucking firm provides the means for businesses to send goods anywhere in the world. Logistics will help companies with packaging, storage, and distribution of material.
Logistics companies make freight ready for movement at an appropriate time. In addition, these companies provide warehouse space for storage. And then, a cross-dock can keep the shipment moving forward.
A freight forwarder generally does not own transport equipment. They may have smaller trucks for local delivery. But the primary function is for pricing and tracking of shipments for the benefit of the shipper.
Freight forwarding companies work with many different logistics firms. First, the service will broker a company’s freight to the best carrier option available. Then throughout the shipment, they will time connections between carriers.
A shipment could need to travel by train to one destination and then by ship to the next. The freight forwarder will coordinate the transfer between carriers. So on the shipper’s behalf, the freight forwarder tracks each movement.
Each Plays A Role
Manufacturing businesses, for example, rely on logistics to coordinate their freight for shipment. Logistics gets the right products to get sent to the appropriate destination. In addition, material handling and sorting get done with a logistics strategy.
A freight forwarder has meaning in keeping an expert eye on the shipment. Your freight forwarding partner then follows your shipment every step of the way. And they use a network of trucking firms to negotiate the best price.
In the end, both types of companies can be integral to any business with freight to ship. The main goal is to relieve the burden of shipping for the customer. Together, these essential services ensure freight goes forward most efficiently.
Keeping Your Business Moving
Business, today for many companies, has become a global concern. The more a business’ shipping needs, the more it relies on professional expertise. And it all has to happen at a remarkable speed.
So many businesses use logistics to handle their shipping concerns. And then, that business will also use freight forwarding to track the freight at every stage. That way, businesses can concentrate on product development and increasing sales.
So if you want a partner that will help your business grow, contact us today. We’ll take the guesswork out of shipping so you can perform better.