Freight Management Company and Freight Forwarder: What is the Difference?

With so many terms and jargons in the logistics world, interchanging some terms is a common mistake. There are some acronyms that are directly understandable however, there are others that could easily get mixed up with other terms.

Two of these are the freight management company and a freight forwarder company. While it looks that they are offering the same kind of services, they are actually two different types of companies. To help you choose the right one you need for your business, here is the detailed explanation about the difference between the two.

Freight Management Company

A freight management company is the one that oversees the process of freight transport. Their main responsibility is to understand fully the logistics, carrier options, shipment methods, regulations, distribution and insurance that is related to the transport of your goods.

A freight management company is a third-party company that is outsourced to handle some or all of the aspects in your supply chain. Having a different team handling the supply chain gives the business owner more time to take care of other aspects of the business such as sales, marketing, and customer service. You could learn more about CIA Logistics and how they efficiently meet every unique logistics needs of each client.

Freight Forwarding Company

Transporting shipment from one place to another, whether it is local or international, can be filled with so much issues, paperwork, tariffs, and other policies which would bring down a company even before their goods are safely transported to the destination.

This is when you need a freight forwarding company. This type of company assists their clients by coordinating the whole process of shipment through their network of carriers or agents. Freight forwarders don’t directly handle the freight, they only setup the entire shipping process for you through a series of trusted carriers.

Which One Do You Need?

Since they are companies offering different services from each other, it is important to choose wisely which on is really needed by your business. For instance, if you already have an experience in handling shipping and logistics but you need assistance in handling special goods, the services of a freight forwarder are what you need. Since they have established ties with carriers, you could also enjoy exceptional rates which could help you save up on the logistics costs.

If you don’t have much experience in shipping and logistics, it is best to leave these tasks to the hands of an expert. This is when you’ll need to hire a freight management company to help you out. Aside from taking off tasks from your hands, you could also expect an improvement in your supply chain when you trust it into a freight management company.

Between those two options, what matters most is that you choose the right service provider that is needed for your business. Aside from having a team that would help you achieve the goals of your business; you can also take care of your shop more when you have lesser things on your hand.