Many shippers find themselves asking the question: is freight forwarding the same as a logistics company? Both are highly sought-after services in the shipping industry but there are key differences that shippers should be aware of. Knowing the differences will help shippers to identify the correct service for their needs and avoid any confusion.
Here’s what you need to know.
What Are Logistics Companies?
Logistic companies offer logistics support using contract logistics. Logistics can help you fill the needs of your entire supply chain. Some services may include warehouse storage, picking and packing, and fulfilling orders. In addition to this, logistics companies will also arrange transport, offer inventory management, reporting, and more.
The benefit of using a logistics company is having the option to outsource many business tasks that take up valuable time and money in the business day. Delegating logistics operations to a professional logistics company makes perfect sense for many business owners. These services are often customisable to meet specific business needs.
What Is Freight Forwarding?
A freight forwarding company arranges the transport of shipments from one place to another. For instance, they may arrange goods to be transported by truck from a warehouse to a shipping dock. The goods will then be transported by ship to another dock and then from the dock to the destination.
Freight forwarding companies often act as intermediaries between shippers and logistics companies. These companies can often get shippers a much better deal on prices as they have long-standing relationships with shipping lines and can negotiate easily. Individual shippers would not be able to secure the same rates.
In addition to arranging this transport, freight forwarding companies will also handle all of the paperwork. Customs documents, invoices, and import/export declarations are all taken care of. They may also be able to offer warehouse storage.
What Is The Difference Between Freight Forwarding And Logistics?
On the surface, it can look like the two services provide the same things. However, logistics companies are focused on providing all-around logistics, while freight forwarding companies are more focused on transport. Logistics can be a very cost-effective option for shippers that presents a variety of tailored solutions.
Whereas freight forwarding is an ideal option for anyone who is concerned with the specifics of transporting goods. The service that’s best for you will depend on your shipping needs. Ask yourself what elements of shipping you need to cover before deciding on which option suits you best.
Selecting a Reputable Provider
Whether you choose a logistics company or a freight forwarding company, it’s important to find a reputable provider. When searching for these services, look at the reviews from past or current clients and ask other shippers for their recommendations.