The Difference Between a Freight Management Company and a Freight Forwarder

While freight forwarders and logistics companies may seem similar or even synonymous, there are some differences between the two to keep in mind. Unlike logistics companies, freight forwarders might be partners with a network of logistics companies, but they do not have any assets themselves. There is a ton of technical jargon in the logistics world – and quite often it can be self-inflicted. While acronyms like 3PL, LTL, FTL, and more have a specific meaning, one phrase that often gets lost in translation is a Freight Management Company. By definition, freight management is the process of overseeing the process of the transportation of freight. There are several large shippers who depend on the professionalism and experience level of a freight management company to not only oversee – but handle virtually every aspect involved in the logistics process. While that description seems rather simple to understand, the confusion comes in comparing the difference between a freight management company and a freight forwarder. While there are several similarities between the two, there are multiple specific services offered that clearly articulate a difference that makes it clear why one of these organizations is more robust than the other.

WHAT IS A FREIGHT FORWARDING COMPANY?

Freight forwarders tend to partner with several logistics companies either nationally or internationally, which means that price checking capabilities are far better and more thorough than what you would get when working directly with a logistics company. Freight forwarders also have more knowledge and experience around specialty companies, which often vary greatly regarding types of transport, house moving, fragile goods, and lead times, among other elements.

WHAT IS A LOGISTICS COMPANY?

Logistics companies, unlike freight forwarders, own all of their own assets including intermodal fleets of trucks, boats, or planes, but without any access to actual shipping routes. Logistics companies often specialize in specific areas such as dry box, long haul, cold storage, intracity, or large scale. At the same time, they’ll attempt to cover every aspect of the supply chain.

Generally, a logistics company is responsible for managing goods’ physical movement along the supply chain. In some cases, they may also manage documentation.

WHAT ARE THE BENEFITS OF A FREIGHT FORWARDER?

There are multiple benefits of working with a freight forwarding company as opposed to a logistics company. The advantages include:

1. A network of multiple logistics companies that helps reduce prices with more diversity
2. Technology-based freight forwarders can provide instant quotes
3. Pricing is more transparent, as most freight forwarders will provide customers with in-depth breakdowns of all costs
4. Maintain data regarding specialty routes along with route optimization to help minimize delays and ensure timely arrival of goods
5. Have a good understanding of logistics companies in many different specialty areas, including household goods, fragile goods, cold storage, and others

In addition to these benefits, freight forwarders can also handle all of the paperwork associated with freight forwarding, including customs documentation, bills of lading, shipper’s export declarations, insurance forms, and letters of invoice.

WHY YOU SHOULD TURN TO BISMILLAH LOGISTICS FOR RELIABLE FREIGHT FORWARDING

Supply chains need freight forwarders that have a good understanding of the goods involved, along with the various suppliers and trade routes. Carson International can give you top-tier customer service and dependable solutions regardless of your needs. Some of the specific advantages you’ll get with the best logistics company in Lahore include:

North American Coverage

With offices located in Toronto, Montreal, Washington, and Vancouver, Carson can meet all international freight needs.

Global Coverage

Carson has a dedicated network of logistics partners all over the world, which provides optimal international coverage via all major global logistics hubs.

Asia-Pacific Specialists 

Carson specializes in cargo management through the Asia-Pacific logistics hub, with many years of experience using this trade lane.

Best-in-Class Tracking Software

We also maximize visibility across the supply chain using some of the best tracking software available. You can easily access and view all shipment documentation, reports, and billing information using our convenient web app.

Customizable Solutions

Depending on your specific needs, we can customize our solutions to proactively identify and address any potential issues anywhere in your supply chain. All of these advantages make Carson International a potentially invaluable asset to your operations as a leading freight forwarder. 

What is a Freight Forwarder?

Moving commodities across the country or throughout the globe can be filled with policies, tariffs, paperwork, and pitfalls that can sink a company before they get their goods safely shipped. This is where a freight forwarding company can significantly assist the shipper. The process of freight forwarding is the coordination of shipping goods from one destination to another, using a single or multiple carriers to complete the shipment. A freight forwarder offers a suite of individual shipping services from simply setting up the shipment, to tracking the cargo, booking the cargo carriers and space, negotiating freight handling charges, preparing the shipping documents and required paperwork, and also helping to file insurance claims if needed. However, a freight forwarder is simply a ‘middle-man – as they set up the shipping for you – but don’t actually handle the freight.

What is a Freight Management Company?

A freight management company is also known as a 3PL or third-party logistics service provider. A 3PL is used to outsource some portions or your entire supply chain and logistics operation. The freight management company has a complete understanding of logistics, including the different carrier options, shipment methods, national and international regulations, insurance, and distribution services. A freight management company is typically hired to handle all aspects of a company’s shipping and logistics needs – so they can focus on growth, sales, marketing, and customer service. A freight management company can handle every part of your supply chain, from storing your goods for shipment, picking, and packaging, and multiple shipment methods from LTL, FLT, to parcel deliveries and overnight shipping if needed. A freight management company can also complete auditing services, so you can review all aspects of your logistics program to find ways of streamlining and making it more efficient.

What are the Benefits of Each?

Like most contracted services, there are some benefits that freight forwarders and freight management company’s offer their customers. A freight forwarder, for example, comes in quite handy for an organization who has experience in shipping and logistics but could use a hand with special types of shipping, such as cold supply chain, international shipping, or hazardous material shipping. Many freight forwarding companies are exceptionally strong at relationship building with carriers – which tends to allow them to negotiate exceptional rates on behalf of their clients.

The 3PL or Freight Management Company is beneficial for a company that has very little experience in logistics or would rather allocate these services to a proven expert. The truth is that logistics is a complex industry, that requires precision, planning, execution, and follow-up to ensure everything is handled professionally. When a 3PL is trusted to handle all aspects of your logistics network, you’ll typically notice improvements in shipping delivery times, reductions in inventory problems, and more satisfied customers. The most important thing to remember is that there are some freight forwarders and freight management companies who are better than others in their segment. If you’re trying to determine between a freight forwarding service and a freight management company, the most important thing to remember is to choose one that best suits your individual company's needs and goals.

Courtesy: Best logistics company in Lahore