Freight logistics focuses on the planning, executing and management of freight by a company that specializes in moving commodities or goods through various means of transport.
A freight company is basically a logistic company that has a detailed framework designed to help its shipping or forwarding of cargo or goods. Freight logistics works as a component of logistics that is fundamental in the field of Supply Chain Management (SCM).
To understand freight logistics, you’d first need to understand the difference between what freight is and what logistics means.
In international or global trade, freight generally refers to the cargo that a company transports from point A to point B intending to get commercial returns.
Logistics is a process, often in place long before anything moves. To simplify it, the planning and execution of how to move the cargo to meet demands in security, safety and time are what logistics is all about. It is central to business and that includes freight companies.
The scope of services provided by a freight company can include any number of services that range from freight forwarding, customs clearance, warehousing, and a whole host of cargo logistics among others.
While freight companies generally ship commodities, cargo or goods via sea, land, rail or air, most often these sections make up what we call sea freight, land/ground freight, and air freight.
•Sea freight- a company uses a ship to transport goods in sea containers from one seaport to another.
• Land freight- it involves moving goods via road or rail
• Air freight- companies may own or contract air carriers to transport shipments from one point of origin to another.
In later paragraphs in this article, we compare road freight logistics vs. sea freight logistics.
In its evolution, it has birthed two vital categories of companies within the freight business: freight brokers and freight forwarders. Is there a difference between freight brokers and freight forwarders?
Yes, there is. Let us look at that by explaining what freight forwarding is.