You might be familiar with the terms freight forwarder and logistics operator. You might have even used them interchangeably before. Although these terms may seem synonymous with each other, there are still some differences between these two transportation service providers.
Freight Forwarder
Freight forwarding refers to the coordination and shipment of products and materials from one point to another using different carriers. Freight forwarders, on the other hand, serve as middlemen who work with a variety of logistics companies when transporting cargo nationally or internationally.
Working with a freight forwarder allows customers to experience better price checking. This becomes possible because freight forwarders often talk to different logistic service providers before providing their clients with the best value for shipping.
Freight forwarders also have the ability to get customers in touch with specialty companies. This might be necessary when customers need to move houses, transport fragile goods, or have short lead times.
Choosing a freight forwarder also provides customers with the following benefits:
- Customers get instant quotes for their shipping needs because most freight forwarding companies have technology-based systems.
- Freight forwarders also provide clients with in-depth cost breakdowns. This is a great benefit, especially for customers who value transparency.
- To save time, freight forwarders can find specialty logistics companies on behalf of clients. Whether the client needs fragile goods shipping, cold storage, or household items transportation, freight forwarders can find a company that can handle the job.
- When clients work with a freight forwarder, they don’t have to worry about handling any paperwork related to shipping.
Logistics Operator
Logistics operators, in contrast with freight forwarders, own all the assets required in transporting products and materials from one place to another. These assets may include delivery trucks, boats, and planes.
This type of transport service provider is also in charge of designing the operations of at least one phase of the logistic chain. Logistics operators have the experience and means to arrange the transport, customs, clearance, storage, handling, and distribution of customers’ shipments. They can also take care of any other activities required by the client and often specialize in certain areas, such as cold storage, large-scale transportation, and dry box shipping.
Working with a logistics solution trucking providers can offer clients the following benefits:
- Because only one company will be handling the shipment of products, customers can expect consistency in services. Every part of the shipping process will be held to the same standards.
- Logistics operators also have more control over customers’ cargo. They don’t have to coordinate with a third-party service provider when transporting goods.
- Customers can also rely on real-time monitoring when working with a logistics operator. This is possible because the operator does not have to relay important messages to different parties for updates.
- Because logistics operators own the assets they use in shipping cargo, customers can be sure that their goods are transported using high-quality heavy haulers.
Which Transport Service Provider is Better?
Both freight forwarders and logistics operators provide clients with several benefits and help them get their cargo from one place to another. Choosing between these two depends on the clients’ needs and priorities. So, it’s best to understand a client’s needs first before suggesting a transport service.
