The business world moves quickly, like a wheel that never stops spinning. This is even more true if you are involved in the international business scene, which demands precision and efficiency, especially in shipping goods. Behind the arrival of goods at their destination, there is a long process involving logistics and freight forwarding services.
Both of these services help deliver goods to consumers, but they have differences. Many people are still confused about distinguishing between these two services.
Have you ever been confused about the difference between the two? Don’t worry, this discussion will help you understand the differences between these services and choose the right one for your business!
Differences Between Logistics Services and Freight Forwarding
Have you ever faced a choice between logistics and freight forwarding? If so, you’re not alone. Although they may appear similar, here are the fundamental differences between these two shipping services.1. Service Scope
Logistics companies offer a wide range of services, from storage and packaging to delivering goods to their final destination. This service is suitable for businesses of all sizes, whether small, medium, or large. On the other hand, freight forwarding focuses on the shipping aspect, particularly on a large and international scale. Freight forwarders act as intermediaries between the shipper and transportation companies, assisting with documents, negotiating rates, and organizing the shipping process.2. Cargo Capacity
Logistics services typically handle small to medium shipments, with specific weight limits depending on the type of service and logistics company. Meanwhile, freight forwarders specialize in handling large cargo, with a minimum of 10 tons. This service is ideal for companies that require large shipments, such as export-import, industrial projects, or relocations.3. Shipping Range
For local shipments, between cities, islands, or provinces within a country, you can use a logistics company. However, for a broader range, including international shipments, freight forwarders are the solution. They have a global network of partners to facilitate international shipping processes.4. Cost
Logistics services are generally cheaper compared to freight forwarding due to their smaller scale of service and cargo. Freight forwarding costs are influenced by various factors such as the type of goods, weight and volume, shipping routes, and additional services.5. Complexity Level
Using logistics services is relatively easier and more practical because their services are integrated. Freight forwarding services require a more complex process, especially in handling documents and international trade regulations.Tips for Choosing the Right Service
To choose between these two shipping services, you need to consider several factors to find the right provider. What should be done? Here are some tips.- Conduct research and compare several logistics and freight forwarder companies before making a choice.
- Ensure the service provider has a good reputation and is trustworthy.
- Understand the scope of services, costs, and terms offered by various companies.
- You can ask questions or consult your needs in detail with the company.
