Logistics and International Cargo Transportation - Basic definitions and differences

Although carriers (i.e. freight forwarders) and logistics companies look in similar or even the same sense, there are some differences between the two that need to be taken into account.

What is logistics? 

“Logistics is the process of managing the movement of a product or commodity from the starting point to the point of consumption. The concept of logistics also includes information on transport, services, warehousing, assembly and sorting of materials and traffic safety. The vehicles that logistics companies use belong to them and they participate in every stage of the supply chain.

What is freight? 

Unlike logistics companies, carriers may partner with a network of logistics companies, but they do not have their own assets. Carriers tend to partner with multiple logistics companies, both domestically and internationally, which means that price verification capabilities are better and more comprehensive than those you can get when working directly with a logistics company. As forwarders specialize in various specific fields, they have more knowledge and experience in the relevant fields.

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