What’s the Difference Between Freight Forwarding and a Logistics Company?

If you need goods transported, it is important to know the differences between a logistics company and freight forwarding, to see exactly what each of these services can do for you. As a business owner, you want to find the most efficient, cost-effective and hassle-free way of transporting your goods by ocean or by land.

Make sure you consider your business needs and what you value most when transporting goods, especially with Brexit changing the way we import and export. Read on to find the main differences between the two and what they can offer you.

What Is Logistics?

At first, a logistics company seems very similar to a freight forwarder, as they assist in transporting goods from buyer to seller. They provide different levels of integration with a company, sometimes providing packaging and labelling, warehousing and other services. However, there are some distinct differences, as for example, an international logistics company doesn’t have direct access to trade routes.

Freight Forwarding and Logistics, What’s the Difference?

At first glance, global logistics and freight forwarders might seem similar, but there are distinct differences. This can be especially important if you are a business owner, as you can match each service to your needs.

Logistics companies are more of an overarching service, as they own their assets such as lorries and boats but don’t have access to trading routes. Freight forwarders do have access to trade routes and specialise in getting your goods from A to B, very efficiently. They offer you more options to transport your goods, with multiple routes and options for transportation available at your fingertips, meaning you can often get better value for your money.

So, before opting for either, make sure you thoroughly research what each freight forwarding and international logistics service provides. Matching their services to your business needs is very important, plus every service can differ, for example, KlearNow uses AI technology to make moving goods even more efficient.

Difference between Ocean and Land Logistics?

Compared to air transportation, ocean and land logistics is a much more cost-effective way of moving your goods. They can often be dependent on where you are moving your goods to and from as if it is internationally, ocean freight may be your only option.

Trucking goods across the country is also a reliable option, where many modes of transport are available. If a road is closed they can simply take another route, making it a very flexible option, especially for moving goods locally.

Ocean freight is probably one of the cost-effective ways of moving goods and is more environmentally friendly than air travel. When transporting overseas, you do need to plan well in advance as is a very long process from end to end. You are able to use all sorts of shipping containers of various sizes and types, making it a very easy way to move goods.

The Benefits of Using Freight Forwarders:

  • Freight forwarding technology makes processes quicker, more efficient and accurate
  • Storing recorded data means optimising each route, minimising delays and ensuring goods arrive in good time
  • Pricing and quotes are always one flat fee, up-front, precise and transparent
  • Gives you access to a whole network of logistics companies, which reduces the price
  • They have a broad knowledge of speciality areas, for transporting particular kinds of goods
  • All documents and records are digitised, making them easy to access at any time
  • You will have end-to-end visibility of the transportation process, putting you in control

Technology That Makes a Difference

Logistics and freight forwarding hasn’t changed for a very long time, which is why KlearNow has revolutionised this process by utilising AI technology. By digitising documents, everyone has access to essential information at all points of the journey, speeding up the process and keeping everyone in the loop.

This not only makes clearing customs quicker and hassle-free, but it can allow you to foresee and react to issues easily. With one transparent, flat fee, all charges are simple and upfront, so you can easily keep an eye on your finances. By using our bespoke AI technology, you can transport goods more efficiently, seeing exactly where your goods are in real-time, every step of the way.

If you want to find more about freight forwarding and what a logistics company can do for you, contact KlearNow today. To read more, you can also take a look at our blog, to see more industry news and updates.