When companies ship goods across the country or internationally, they often need to use a freight forwarding service. What does this service entail, and what constitutes a freight forwarding provider?
In Part 3 of our Logistics Lingo Series, the team at Lighthouse shines a light on freight forwarding and the importance of this service.
Table of Contents:
What Is Freight Forwarding?
Examples of Freight Forwarding Companies
How Big Is the Freight Forwarding Industry?
What Do Freight Forwarders Do?
FAQ: Freight Forwarding
What Is Freight Forwarding?
Lighthouse Logistics works with freight forwarding providers to connect them with carriers to handle the first and last miles, mitigating backlogs and delays related to moving goods and products to the final destination.
Freight forwarding services provide a “middleman” during a shipment’s journey from its starting to its endpoint. However, this service does not simply involve transporting shipments. Many freight forwarding companies provide storage services and solutions to clients.
Examples of Freight Forwarding Companies
The largest freight forwarding companies include Kuehne + Nagel International, DHL, CEVA Logistics, and Nippon Express. These companies are the most well-known freight forwarders in the industry, managing the movement of global freight and domestic shipments.
How Big Is the Freight Forwarding Industry?
According to Global Market Insights, the freight forwarding industry hit $191.6 billion in 2022. It is expected to surpass $284 billion in 2030.
Covid exacerbated the need for shipping as countries shut down and the public shopped from home. However, this demand stressed supply chains and delayed shipments, especially air and sea delivery.
GoFreight explains that the shipping industry has been transformed because of these disruptions. In response, the logistics industry and individual carriers evolved to change with the market and its complexities.
The virtual shopping experience is now the norm for many, and shipping needs continue to grow. As demand for domestic and international shipping solutions surges, companies seek out freight forwarders and their network of carriers.
What Do Freight Forwarders Do?
Freight forwarders liaise between a client (or company) and a shipping provider (or a carrier). The role of the freight forwarder is to “forward” the freight to a carrier to move the shipment to the final destination.
Freight forwarders work with LTL (less-than-truckload), FTL (full truckload), flatbed, and air or sea freight carriers. Freight forwarding companies also utilize drayage services to move shipments a shorter distance to a seaport or a rail provider. In addition, a freight forwarder provides storage solutions for freight or shipments.
FAQ: Freight Forwarding
What is freight forwarding vs. logistics?
Logistics teams can work with freight forwarders, but the two specializations in the shipping industry are different. Logistics teams handle the documentation of where their shipments are in the supply chain. At the same time, freight forwarders manage the exact details of the shipment as it moves from carrier to carrier during the shipping process.
Is FedEx a freight forwarding company?
FedEx offers freight forwarding, but it is not the largest provider.
What is the biggest freight forwarding company?
Kuehne + Nagel International.
Bình luận