Traditional Freight Forwarder v.s. Modern Logistics:What is Freight Forwarding?

Freight forwarding industry refers to accepting the entrustment of the consignee or consignor of import and export goods, in the name of the principal or in his own name, for the principal to carry out international cargo transportation and related business (customs declaration, handover, storage, allocation, inspection, packaging , Transshipment, booking, etc.) and include remuneration industries.

Freight forwarding business is essentially an agency behavior.

The differences between traditional freight forwarding and modern logistics

Modern logistics service companies must master advanced management technology, and communicate with relevant units based on information exchange and information processing technology and equipment; traditional freight forwarders mainly rely on freight equipment, such as warehouses and fleets. In freight forwarding business, the source of information Mainly rely on the customer to provide.

Freight forwarding services are usually based on customer instructions. In comparison, this service is passive; while the goal of logistics services is to continuously meet customer needs and help customers formulate business strategies, so it is proactive and has a guiding role. 

Modern logistics services do not necessarily engage in specific freight work. Its main task is to provide customers with transportation management services by selling advanced freight integrated management technology to relevant customers, focusing on the overall transportation link, and therefore, they may not actually engage in specific freight work like freight forwarders. , To transport the customer’s goods from one point to another designated point.

Freight forwarders only participate in freight-related activities, but modern logistics services may also provide customers with global ordering and supply services. Therefore, modern logistics services have a wider scope and are more closely connected with enterprises in the supply chain.

Modern logistics service companies need a complete logistics network. How to establish and improve their own logistics network is more important than an enterprise that only engages in freight forwarding. Without a complete network, it is impossible to do a good job in supply chain management and transportation services.