Cargo transportation is a rather popular service. With its help, people can buy and sell goods, organize moving, etc. At the same time, many people don’t understand the difference between the terms ‘logistics’ and ‘freight forwarding’. They think that these terms are the same. But it is not true. Let’s understand what differs one term from another.
What’s the main difference?
Logistics is one of the economics sections that is responsible for the goods delivery from a producer to a customer. Freight forwarding provides cargo escorting on the route. Also, it deals with solving different problems that can suddenly occur during delivery. As you see, both terms are different, though they refer to cargo transportation. They are equally important in the sphere of shipping.
What should we know about logistics?
Logistics is a broad concept. Logistics services include the goods package, a choice of an optimal vehicle for further transportation, and direct delivery. Also, logistics deals with supporting communication from the start to the end of delivery to the destination point. Moreover, the logistics specialists are responsible for the proper organization of the storing goods in the warehouse. They answer the questions that can occur during delivery.
Even though the terms ‘logistics’ and ‘freight forwarding’ are different, transportation logistics is usually meant while comparing them. Such a term means the process of cargo transportation from one point to another, which includes route development with minimum waste of time. Transportation logistics is close to freight forwarding so they can be easily confused. Today, it’s difficult to differentiate these terms.
Transportation logistics includes a lot of different actions. It includes:
- a choice of an optimal vehicle for the partial truckload and further transportation (it’s especially important for the perishable goods and goods that require special storage conditions);
- development of an optimal route that will be the shortest in length and in time (specialists take into account traffic jams, renovation works, different limitations, road conditions, and other factors);
- a choice of a warehouse for intermediate good storage during long-distance transportation;
- time calculation (to avoid problems during unloading).
What does freight forwarding include?
This service includes a search for appropriate special machines, arrangement of documents (especially when it is an international delivery), and the development of the route. You can think that the logistics doesn’t take part in the arrangement of documents for the goods stored in the warehouse. But it is not true. Sometimes freight forwarders resolve issues of placement of goods in the intermediate storage warehouses, and logistics specialists deal with the arrangement of documents.