Is Freight the Same as logistics? What does freight logistics mean?

Freight and logistics are words that are often encountered when talking about cargo transportation. It is essential to know and understand the meanings, differences, and relations of these terms to ensure smooth freight transactions for the needs of your business.

Freight and logistics

Freight Shipping Container

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Freight in meaning

What is freight meaning? Freight refers to cargo or goods transported from one place to another by land, sea, or air. It could also mean the act of transport or the fee paid to a shipping company.

Meaning of logistics

What is the meaning of logistics? Logistics, on the other hand, refers to the organized process of coordination and management of resources from acquisition, storage, and transport.

Freight & logistic service

Freight management services

Freight Management is the process of supervision and management of a cost-efficient process of the delivery of goods. It deals with human resources, logistics, and information management to ensure a smooth transaction with shippers and carriers. Roles include the selection and coordination with a transport company and the discussion of rates, terms, and conditions.

Logistic management services

Logistics management is the extensive procedure of management of the acquisition, storage, and transportation of resources to their respective final destination. It refers to the overall service component as compared to the more specific actions in freight management service. It involves sourcing, customer service, production setup, and packing, apart from all the stages of complete transportation management.

Difference between cargo and freight

The difference between cargo and freight is that freight may refer to the fees charged by the transport carrier while cargo refers only to the goods solely. Freight can also be used to refer to the process of transporting goods. Cargo is also often used for goods transported by large carriers such as ships and planes, while freight is commonly carried by smaller vehicles like trucks but can also be transported by trains, ships, or planes.

What are the logistics of shipping?

Logistic means the detailed operation of the transport of goods and the meaning of logistic service is the obtainment, production, and distribution of products by logistic service providers to their customers.

Shipping and Logistics

Shipping and logistics are different things but are part of the same world and are sometimes interchanged. It is important to know the definitions and differences of each of these terms.

What is shipping?

Shipping only refers specifically and is limited to the transport or movement of the goods itself, it stands for the date when the shipment leaves the supplier’s warehouse and does not include other steps or involve other parts of the logistics procedures.

Types of Shipping

Shipping has three types if it is to be categorized depending on the mode of shipment. You have Land, Air, and Sea Shipping. The factors in choosing which kind to use depend on the cost of shipping, the speed of shipment, the type of goods, and the security of transit.

What’s the logistics?

Logistics refers to the overall process of resource management, acquisition, storage, and transport. Logistics is a part of the supply chain that involves activities such as ordering, purchasing, forwarding, and storage or warehousing. It also deals with the customer service involved throughout the operation.

Types of Logistics

Logistics can be categorized into three types, namely: Inbound Logistics concerning receiving of goods from the supplier or manufacturer; Outbound Logistics or the process of delivering of goods to a customer or respective destination; and Reverse Logistics or the process of receiving returned goods from customers.

Freight, Logistics, and Shipping: What are their differences?

As with shipping, the difference between transportation and logistics is vast and interchangeable with eahc other yet somehow the terms are often confused for one another. This is because the transportation of the goods and materials or its shipping is only a part of the intricate operations that logistics is concerned with.

Shipping is strictly referring to the physical transportation or movement of materials or goods from one location to another according to the client. Logistics is a more general or broader term that involves the complex process of managing the whole operations, while shipping logistics is the successful transportation of goods.

Maritime Industry

The Maritime Industry plays a big part in both shipping and logistics. Anything involving the oceans, seas, ships, seafaring, etc. is under the maritime industry which means cargo shipping and freight forwarding are under it.

Shipping Business

Shipping businesses fall under the Maritime Industry. Transporting goods and materials via a ship or other sea vessel falls under this business.

Freight

Freight refers to the cargo carried by the shipping company. It also falls under the maritime industry.

Logistics Service

Logistics Service refers to the process of getting the cargo from the suppliers’ warehouses to the receiver’s warehouse. This also includes the arrangement of shipping services with the shipping lines.

Supply Chain

This involves the steps in the production cycle from raw material sourcing to production, packaging, distribution, and delivery of the products to the shelves.

Trade

Trade is basically the selling and buying of goods and services. This involves the exchange of goods or services between parties and payment of fees from the buyer to the seller.

How COVID-19 has Impacted Freight and Logistics

The COVID-19 pandemic has put some economies to a halt and while businesses are slowly getting back to their former rhythm, its impacts are not to be glossed over. The freight and logistics industry was affected during the pandemic because the supply chain has been disrupted and there have been delays due to Government regulations and legislation, as well as, the health and safety of the industry’s workforce.

How Long Does Freight Take

Freight shipping takes from as fast as 2 days to around 45 days depending on how far the pickup point of the freight is from the destination. It also depends on the kind of shipment or the price paid by the shipper.

Who ships freight?

Shipping lines or shipping companies ship the freight of goods by ship or other means of transport. Different ships transport different kinds of cargo depending on the nature and size of the shipment.

Why are freight rates so low?

Freight rates have been dipping especially in 2022 because the demand for shipping has also declined partly in connection with the COVID-19 pandemic and the economic uncertainties it has brought.

How much to ship a pallet of freight?

Pallets are platforms used to package goods for freight shipping. The shipping cost of a pallet of freight depends on its dimensions and its weight. It also depends on the load class, type of pallet, distance of shipment, and the shipping provider’s rates.

What is a freight forwarder in logistics?

Freight forwarding service providers provide coordination and shipment of materials and goods from one location to another. They provide the best options for their clients for easier transactions in shipping freight.

Freighter meaning

Freighters may refer to a person or a vehicle that transports the cargo. In the case of a vehicle, it can be a ship or an aircraft, while in referring to a person, it refers to a person that is responsible for loading or chartering the ship.

Who are freight forwarders?

Freight brokers serve as middlemen between shippers and carriers, they facilitate communication between the two parties and make sure that the handover of goods for shipment goes smoothly.

When to Use a Freight Forwarder

Freight forwarders are utilized for cost reduction, risk reduction, and guarantee of a high-quality service. If you want to your shipment to be handled by someone who has years of transport expertise and cost and risk reduction, use a freight forwarder.

How many freight forwarders are there in the U.S.?

As of 2022, there are 90,130 Freight Forwarding Brokerages and Agencies in the United States which means there is a 3.8% growth in the U.S. Business. However, for a 5-year comparison, there has been a 0.9% decrease in Annualized Business growth from 2017.

Who is the largest freight brokerage firm in the U.S.?

The company that ranks first as the largest freight brokerage firm in the United State of America is the Company C. H. Robinson Worldwide with a Gross Revenue in Millions of $14,508 and a New Revenue in Millions of $ 1,793.0.

Freight Forwarder Companies in the U.S.A.

You may be looking for a good company to handle your personal and business shipments. Check out other U.S. Freight forwarding for your next freight forwarding needs.