BIFA - Benefits of using a freight forwarder - June 2022

2 Supply Chain Management Services Offered

The differences between freight forwarding and logistics are subtle and there is often an overlap between the two. We have tried to clarify the differences as follows:

Many forwarders provide both these services, thus fulfilling the dual role of freight forwarder and logistics provider. Some see the difference between the two activities as being determined by whether the service provider undertakes the activity themselves or arranges to have it carried out by another party. In all probability, in the former scenario the supplier is acting as a logistics supplier, whilst in the latter as a freight forwarder. It is important not to become too pre-occupied on this point and often it is the provision of the service and how it is undertaken that determines whether it is a freight forwarding or logistics activity. However, regardless of definition, in both roles the international transport service supplier is managing the supply chain in line with their clients’ needs.

freight forwarder

In the strictest interpretation of the term, a “freight forwarder” acts as an intermediary between the company that manufactures the goods and the final destination for the shipment. Although freight forwarders do not carry out the shipment themselves, they offer different transport modes such as sea / ocean freight, rail freight, road transport and air freight.

logistics

Logistics is a wider term, “logistics companies” plan, implement, and control the movement and storage of goods, services, or information within a supply chain and between the points of origin and consumption. A proper supply chain may include transportation, shipping, receiving, storage, and management of all or one of these functions.

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Benefits of Using a Freight Forwarder

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