The logistics and freight forwarding industry has been booming recently due to the rise of e-commerce as the preferred choice for people to make purchases.
From 2022 to 2023 alone, the freight forwarding and logistics industry is predicted to grow again, given the increasing number of transactions requiring more shipments—and it’s getting easier and easier, you know.
But did you know that “freight forwarding” and “logistics” have different meanings? We’ll discuss this in detail in this article, so be sure to read it all the way through.
Definitions of Freight Forwarding and Logistics
These two terms refer to distinct concepts.
Shipping
In general terms, “shipping” refers to the act of traveling to reach a specific location. The purpose can vary—it might be for research or to explore a particular area. Do you understand the concept so far?
However, when applied to shipping goods, “expedition” refers to a company that specializes in shipping small- to medium-sized shipments to various regions.
Shipments using expedition services are considered faster because they offer same-day delivery options. That’s why this service is so popular among the public.
This is because these services prioritize speed and offer lower prices compared to other options.
Logistics
Logistics refers more broadly to the management of various activities related to shipping, procurement, warehousing, and the storage of various types of goods according to clear regulations.
When we talk about logistics, a logistics service provider is a company that offers services ranging from shipping and warehousing to management and transportation. So, its scope is broader than that of a freight forwarding service. In this context, logistics can involve long-distance shipping—even to other countries or overseas.
Read Also: Indonesia’s Forwarding System: Maximize Your Business with Oaktree
Understand the 3 Types of Freight Forwarding and Logistics Services
In general, the various shipping categories under freight forwarding or logistics are similar. Check out these 3 examples of logistics and freight forwarding services based on their shipping routes.
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Sea Freight
Well, you should know that shipping via sea routes can be relatively inexpensive and reaches more destinations. However, delivery times are longer, as they depend on the conditions of the sea routes traveled by the cargo ships.
When compared to other shipping methods, it does take quite a while, but many choose the sea route because of its more affordable cost.
There are several types of ships commonly used for shipping goods through freight forwarders or logistics companies, including fast ships and container ships. There are also specialized cargo ships—known as cargo vessels—and Pelni ships.
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Land Shipping
Freight forwarding and logistics companies frequently use land shipping because the process is simpler and offers greater security regarding packaging and tracking during transit. However, the shipping range is more limited, restricted to interprovincial shipments within a single archipelago.
A drawback to consider is that loading goods onto a truck requires waiting until the truck is full. This usually takes a long time, depending on the volume of goods.
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Air Shipping
As for air shipping, it utilizes a fleet of aircraft, offering the advantages of faster delivery times and more streamlined procedures.
However, the factor that makes many people think twice about using air shipping is the higher cost, especially when compared to sea and ground shipping.
The volume of goods that can be shipped is also limited to medium-scale shipments, due to the aircraft’s limited cargo capacity.
Air freight is indeed faster, but it’s also more expensive; most of us opt for the more economical ground shipping.
In Indonesia, the growing demand for air freight is now being met by various professional service providers, one of which is MAS Cargo Express.
As a trusted shipping company, this Tangerang-based firm offers extensive delivery coverage, supported by a fleet ready to transport goods to major cities across the country.
If you want to confirm service coverage before shipping your goods, please check MAS Cargo Express’s shipping routes first to ensure a more organized and efficient shipping process.
Well, that’s a comprehensive explanation covering the basics and other important aspects of freight forwarding and logistics. We hope this is helpful for those of you who wish to use these services.
Read Also: Expedited Shipping: Learn the Definition and Benefits!
Logistics and Freight Forwarding Software?
We’ve been discussing freight forwarding and logistics, but did you know there’s actually software that can handle all of this? What is it? Oaktree. Oaktree simplifies logistics and freight forwarding operations because everything is fully integrated.
For more information, feel free to ask us here.