Get to know the vital terms of Logistics and Supply Chain Management.
In simple terms, a freight carrier is a company that takes the physical journey of goods and cargo from one destination to another. They move shipments on behalf of shippers for their services in the supply chain so that their products reach their destinations. Freight carriers are essentially land-based, sea-based, or air-based depending upon the type and destination of shipment.
NVOCCs are unique in that they are both carriers and freight forwarders. Even though they do not own the vessel, they handle the shipping process and issue their own Bills of Lading, playing the role of an intermediary for the shipper and the actual carrier.
Freight forwarders are not carriers but they arrange freight in all logistics, coordinate transportation, and negotiate with other carriers so the shipment can move easily from one end of the supply chain to the next.
Domestic cargo, by principle, is controlled by trucking companies or railroads because they can have control over ground-based transportation inside one’s country borders, transshipping those goods over short as well as long distances.
International shipments use air freight and sea freight. Cargo airlines manage air freight while maritime carriers do the same for sea freight. Carriers often operate in door-to-door delivery services that cut across country and even continent lines. More often than not, this would involve the distribution of shipments through multiple carriers.
Freight carriers form part of the packaging of goods most importantly, they ensure the final delivery. Freight carriers are basically involved with shippers, forwarders, and others to offer reliable transportation solutions while working through shippers, forwarders, and other parties involved in the logistics process. They handle everything, from small packages to large cargo, forming an essential role in facilitating global trade and distribution.
Freight carriers are the largest players in the shipping and transportation industry because they offer the physical intermediary by which to shift commodities across nations and continents. Such players include trucking companies, railroads, airlines, and maritime services, with companies such as these firms guaranteeing the efficient movement and delivery of cargo to businesses and consumers alike. In this respect, therefore, these companies play an important role in keeping supplies flowing in global supply chains.