International logistics and freight forwarding are integral to modern international trade and supply chain management, primarily handling the transportation, customs clearance, warehousing, and distribution of goods.
1. Definition
International logistics involves the transportation and logistics management of goods across countries or regions, inclusive of processes such as import and export customs declarations, clearance, transport, warehousing, and distribution. Freight forwarding refers to specialized services related to the movement of goods within the distribution sector and is a vital component of international logistics. The operational procedures of freight forwarding encompass activities such as providing quotations, handling commissions, arranging bookings, overseeing delivery, confirming bills of lading, and carrying out customs declarations.
2. Responsibilities
International logistics companies are engaged in overseeing the complete supply chain process, and freight forwarders boast a more specialized expertise and are capable of reducing transportation costs and offering streamlined transport services for trade enterprises. Freight forwarders are tasked with choosing the most efficient modes of transport and routes as per client specifications, coordinating the shipment and handling of goods, arranging for cargo insurance, and monitoring the consignments’ status after delivery.
3. Scope of Business
International logistics companies usually possess their own fleet and network, capable of delivering global logistics services. In contrast, freight forwarders typically do not have their own means of transport, but rather represent the four major express couriers or other carriers. By maintaining partnerships with a variety of transport and logistics providers, freight forwarders furnish clients with all-encompassing logistics solutions.
4. Business Process
The business process for international logistics is extensive, involving steps from the import and export of goods to customs declarations, customs clearance, transport, warehousing, and distribution. Conversely, the process for freight forwarding is more concise, concentrating on processing customer orders, selecting the optimal transportation methods and pathways, managing the transport and handling of goods, and facilitating communication and coordination with clients.
To summarize, both international logistics and freight forwarding facilitate the overseas transportation of goods, though they present some distinct features. International logistics companies operate their own networks and have the capability to run their operations, whereas international freight forwarders serve as intermediaries for the four primary couriers or other shipping services without having their own transport assets. Both are dedicated to moving goods from their origin to their destination, providing essential transport and logistics management services.
Post time: Apr-12-2024