The Differences Between Logistics vs Shipping vs Freight Forwarding
In today’s interconnected world, transporting goods across borders
July 25, 2024
FAQs (Frequently Asked Questions)
What is the difference between logistics and freight forwarding?
While logistics providers oversee the entirety of the supply chain process, freight forwarders focus on tasks such as managing documentation, facilitating customs clearance, selecting carriers, and tracking shipments.
What is a freight forwarder vs. broker?
A freight broker facilitates the link between shippers and carriers without directly handling the freight. Conversely, a freight forwarder assumes ownership of the freight, often providing storage, packaging, and shipping services.
Who should use a freight forwarder service?
Businesses of all sizes that engage in international freight shipping can find value in the services of a freight forwarder. Employing a freight forwarder can potentially lead to time and cost savings, especially for companies exporting large quantities of goods or high-value items via road, sea, or air freight.
Who pays the freight forwarder?
In cases where the terms state “FOB origin, freight collect,” the buyer bears the responsibility for freight charges. Conversely, if the terms indicate “FOB origin, freight prepaid,” the buyer takes responsibility for the goods at the point of origin, while the seller covers the shipping costs.
