What is the difference between freight forwarding and cargo transportation?

Jun 12, 2024

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1, Definition and Overview
Freight forwarder
Freight forwarders, also known as freight forwarders or logistics agents, are third-party service organizations specialized in organizing, coordinating, managing, and controlling cargo transportation. The main responsibility of a freight forwarder is to provide customers with comprehensive logistics services, including cargo consultation, booking, customs declaration, inspection, transportation, warehousing, and insurance. They ensure that goods can be safely, timely, and efficiently delivered to their destination according to customer needs through cooperation with carriers, customs, inspection and quarantine agencies, and other parties.
Freight transportation
Freight transportation refers to the process of transporting goods from the place of origin to the place of receipt, covering the loading and unloading, handling, transportation, warehousing, and other aspects of goods. Freight transportation is usually achieved through different modes of transportation, such as road transportation, railway transportation, waterway transportation, and air transportation. The purpose of cargo transportation is to meet the needs of the shipper or consignor by transporting goods from the place of production or supplier to the consumer or customer.
2, Functions and roles
The functions and roles of freight forwarders
Freight forwarders play the roles of coordinators and organizers in the logistics chain. They not only need to provide professional logistics consulting and advice to customers, but also need to be responsible for the cumbersome procedures of booking, customs declaration, inspection and other related goods. In addition, freight forwarders need to communicate and coordinate with carriers, customs, inspection and quarantine agencies, and other parties to ensure that goods can smoothly pass through various links and ultimately achieve safe, timely, and efficient delivery to the destination. The professional knowledge and experience of freight forwarders are crucial for ensuring the smooth progress of the logistics process.
The functions and roles of cargo transportation
The main function of goods transportation is to transport goods from the place of origin to the place of receipt. During the transportation process, the carrier is responsible for the loading, unloading, handling, and transportation of the goods, ensuring that the goods can be delivered to the destination according to the time, place, and method specified in the contract. Carriers need to possess professional transportation skills and experience to cope with various complex transportation environments and emergencies. At the same time, the carrier must also comply with relevant laws and regulations and the provisions of the transportation contract to ensure the legality and safety of the transportation process.
3, Operation mode and service scope
The operational model and service scope of freight forwarding agents
Freight forwarders usually adopt the operating model of third-party logistics to provide customers with comprehensive logistics services. Their service scope covers various links from cargo consultation, booking, customs declaration, inspection to transportation, warehousing, insurance, etc. Freight forwarders can provide customized logistics solutions for customers to meet their different needs. At the same time, freight forwarders can also provide customers with cargo tracking and feedback services, ensuring that customers can keep track of the transportation status of goods in real time.
The operation mode and service scope of goods transportation
The operation mode of goods transportation is mainly based on the transportation mode and contract provisions. The carrier is responsible for delivering the goods to the destination at the time, place, and manner specified in the contract. The service scope of goods transportation is relatively single, mainly focusing on the transportation process of goods. However, with the continuous development of the logistics industry, some carriers have also begun to provide value-added services such as warehousing and distribution to meet the more diverse needs of customers.
 

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