Difference between freight forwarder and logistics company
Freight Forwarder and Logistics Company can often be found in the same breath, but are actually quite different. Most people that are not common shippers will think they are the same, but in fact, they are not. Freight Forwarder’s are similar to kargo.co.id, they have partnerships with multiple logistics companies, but do not actually own assets directly. Apposed to a Logistics company which has a much wider physical asset portfolio, the company will own majority of the ships, trucks or planes.
How Can a Freight Forwarder Help You?
Freight Forwarder’s will have partnerships with multiple logistics companies around the country or globe, so the price checking ability will be much greater, wider and in depth than going through a single logistics company. Not only having the widest range of prices, it will have an idea on specialty companies, which could vary between lead times, type of transport, fragile goods, or house moving etc.
Freight Forwards with Technology
Freight Forwarders have often been seen as the middle man, but technology has revolutionized the idea of the ‘middle man’. Freight forwards can now check 100’s of different routes and logistics companies using technology within seconds. Online freight forwarder’s have taken out the process of the traditional methods and can now minimise quotation times.
What does a Freight Forwarder Do Different?
- Have multiple logistics companies in partnership which allows cheaper prices as more diverse price lists
- If technology based, can quote instantly (Examples would be Kargo.co.id, FreightOS, FreightFilter)
- Transparent Pricing Methods; majority of freight forwarders will give an upfront price break down to maximise customer satisfaction
- Clear understanding of specialty logistics companies (fragile goods, animals, household goods, cold storage etc.)
- Database of information about specialty routes and route optimization to ensure freight arrives on time and avoids delays.
Reducing Customer Headaches
The paperwork involved when shipping either domestic or international can be extremely complicated, and constantly changing. This alone can prove to a customer that hiring a freight forwarder is worth its weight in gold.
- Customs Documentation; claiming and describing all the products and information about the products being sent
- Shipper’s export declaration; to make sure goods clear customs efficiently, ensure that the shipper declares all goods correctly and accurately.
- Bill of Lading; When the goods are going to enter the country, including the consigning person
- Letter of Invoice; how much the goods cost and what sort of quantity of each product.
- Insurance forms; if the goods are insured, this will be in case of any damage or loss. The logistics companies will often have their own insurance cover also.
Note; All countries will have parts of paperwork that are different and before shipping the logistics company will ask the freight forwarder for all the important documents. Make sure as the customer you fill in all these goods accurately so the shipment will clear customs swiftly.
What A Logistics Company Does?
Logistics companies own the fleet of trucks, planes or boats, but do not have access to additional shipping routes. Majority of logistics companies will specialise in a particular area (cold storage, dry box, large scale, long haul, intracity) but will still try and reach all parts of the supply chain. Logistics companies will manage all the physical movement of the goods, and depending on the freight forward, also some of the documentation.
Kargo is an online freight forwarder that has access to over 400 logistics companies. These logistics companies specialise in expedition, regular shipments, house moving, shipping through the islands, and e-commerce. Have a look for yourself.
7 Replies to “Difference between freight forwarder and logistics company”
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I really like the way you have explained the difference between freight forwarders and logistics companies. You have truly provided in-depth knowledge of these concepts and the various companies that handle them. Thank you for sharing this article. I really appreciate the efforts you have made to write this article.
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This is the exact information about the difference between these two also this blogs helps the readers to know exactly the procedure and paperwork required. Most of the people are unaware of the fact about a logistics company and a freight forwarder.
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