What’s the difference between freight forwarder and shipping company?

by Sudarsan

In this highly competitive global business environment, most businesses strive to expand their market share. They want to increase their profit margin and grab new customers every day. It is a primary reason why several companies are expanding their operations beyond their territorial borders. When they go global in their export-import, the raw material and goods transportation becomes a crucial issue. It is why corporations are required to send their items from one part of the world to another. 

However, various companies lack house resources for transporting their items. It is here that the employee shipping services for doing the job on their behalf. Also, freight forwarding and shipping companies help you transport goods straight from the manufacturer to the client.

Crucial differences between a cargo shipping company and a freight forwarder

Both shipping companies and freight forwarders focus on transporting commercial cargoes from one destination to another, and they work in close contact with each other. However, you may notice crucial differences in the way they function.

Vessel ownership

A freight forwarder usually functions by subleasing any particular ship to carry containers or cargo because they do not own vessels or carriers. However, shipping companies own vessels because their mode of operation is through trucks and ships.

Value-added benefits

Freight forwarders use various service providers to benefit their clients to transfer shipment from one point to the destination. As such, they stay in touch with other companies such as customs brokers and warehouses. You do not have to contact each service provider. However, shipping companies cannot provide these kinds of value-added services because they concentrate on shipping containers through a ship. They engage in tracking until the consignment reaches its final destination, but documentation and customs clearance do not come under their jurisdiction.

Space in the warehouse

For consolidating cargo and goods, freight forwarding companies keep a separate location known as a station for freight containers. The place gets used for loading and unloading containers. 

However, airlines and shipping companies do not have a designated warehouse for stationing containers, and they do not use this method to consolidate goods. These benefits help you make your choice. 

Why do people prefer freight forwarding and not other alternatives?

As stated earlier, freight forwarding is a reliable, efficient, and effective means of transportation. These freight forwarders work for carriers, suppliers, logistics providers, and other clients. Apart from this, take a look at some benefits associated with their services

Timely delivery and pickup: and entrepreneurial activity can undergo severe damage if they lose clients. One of the crucial reasons behind the dissatisfied customers is the untimely delivery of products and services. The loss of a package overseas makes the client find themselves in a difficult situation. Freight forwarding, on the other hand, is a professional option. These firms offer timely pickup and delivery of the cargo.

Efficient tracking system: when you invest a reasonable amount of your time for making the consignment reach its destination, the mode of transportation is a crucial factor. Companies worry about the loss of their merchandise because of the method of transportation. In this regard, when they have a tracking system under their supervision, it eases them off the tension. There are various options for delivery available at their disposal. Star Concord Shipping & Freight Forwarder ensures to keep your merchandise under extreme care.

However, only authentic air freight forwarding companies provide you with the possibility of keeping track of the cargo. 

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