To the uninitiated (which included me at one stage), these industries are same or similar and it might come across that there is no difference between Freight and Logistics.
Unpack the difference between Freight and Logistics
Freight = the cargo that is carried using the shipping services offered by the shipping lines using the ships which falls under the Maritime industry.
Logistics Services = The processes involved in getting the cargo from the manufacturers warehouse to the receiver’s warehouse including arranging for shipping services offered by the shipping lines using the ships which falls under the Maritime industry.
Freight
Many of us in the business relate to freight as “money”.. Freight is what the entire global trade revolves around, but also has a different meaning to money..
In simple terms, FREIGHT refers to CARGO that is carried by a carrier (ship, road, rail, air) in exchange for commercial gain..
In the context of waterborne freight, freight refers to the cargo that is carried using the shipping services offered by the shipping lines using the ships which falls under the Maritime industry..
There are various types of cargoes that are shipped around the world..
dry bulk – coal – difference between maritime, shipping, freight, logistics, supply chain and tradeDry Bulk, which covers five major bulk commodities (iron ore, coal, grain, bauxite and alumina, phosphate rock), minor bulks (forest products and the like), Containerised Cargo, General Cargo/Break Bulk accounts for about 70.2% of global trade and Wet Bulk such as tanker cargo (crude oil, petroleum products and gas) of about 29.8% accounts for the balance..
If you notice, bulk and break bulk is shown separately (although as part of dry cargo) because there is a discernible difference between bulk and break bulk..
Freight may be carried in different parcel sizes ranging from 500 gms using a bicycle courier to more than 400,000 tons using a Valemax ship.
Of course different freight types have different characteristics and susceptible to different types of cargo damage and needs expert handling in all cases..
Logistics
The term logistics is said to have originated from the military and is said to have been initially used to define troop and equipment movement in the various areas of military operations.
Logistics is the process involved in getting the cargo from the manufacturer’s warehouse, point of origin, mine site, farm etc to the receiver’s warehouse, door, store etc..
The process of logistics actually begins way before the actual shipment takes place as it involves discussing and deciding on the delivery schedules suitable to both the buyer and the seller..
Once these are decided, then the logistics services provider needs to decide on the best method of moving the cargo from the seller’s door to the receiver’s door..
A LSP (Logistics Services Provider) should have the expertise to choose the best solution for the movement of the cargo.. Cargo is moved using road, rail, air and sea and each of these modes of transport have their own peculiarities and characteristics..
Air freight may be quicker than sea freight, but much more expensive. Rail freight may offer more reliable transit times and schedules than road freight and may also be better for the environment.. Road freight has the capability to offer complete door-to-door service and can be considered as one of the more economical means of transport.
The planning, implementation and execution of the various aspects involving the movement of cargo such as materials, services, information, shipping, documentation, scheduling, tracking and delivery is the main function of logistics..
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Source: shipping and freight
