The words cargo and logistics are similar in some ways and some people may get confused. In this blog, we'll clarify the difference between cargo and logistics.
What is Cargo?
Cargo means goods or product being transported from one place to another by ships, railway freight services or other transportation ways. At the very beginning, cargo means goods loaded on the ship. Nowadays, it describes all types of goods, not limited to ship.
What is Logistics?
Logistics includes but is not limited to cargo. Complete logistics may include two core modules, one is transportation management in logistics and the other is warehousing and distribution services and even auxiliary modules such as sorting, which perform functions such as storage, transportation, loading and unloading, packaging, and processing of materials between production and consumption.
Cargo Logistics Meaning
Cargo logistics is applicable to handling your goods, checking it, and tracking its process from point A to the final destination. The use of organized cargo and logistics agreements allows the carrier to ensure the safe transportation of your goods. Logistics acts on every mode of transportation, including air cargo and logistics and international shipping.
In the whole industry, cargo logistics may have different names, such as freight logistics or shipping logistics. No matter what name is used, they all boil down to the same thing. Logistics freight includes performing the activities necessary to transport your items.
What is the difference between cargo and logistics?
First, modern logistics services company must master advanced management technology, and communicate with relevant units based on information exchange and information processing technology and equipment; traditional cargo forwarders mainly rely on cargo equipment, such as warehouses and fleets. In cargo forwarding business, the source of the information mainly depends on the customers themselves.
Second, cargo forwarding services usually take the customer's instructions as the starting point. In comparison, this type of service is passive; while the goal of logistics services is to continuously meet customer needs and help customers formulate business strategies. So it is proactive and plays a guiding role.
Third, modern logistics services do not necessarily engage in specific cargo work. Its main task is to provide customers with transportation management services by selling advanced cargo integrated management technology to relevant customers, focusing on the overall transportation link.
Fourth, cargo forwarders only participate in cargo-related activities, but modern logistics services may also provide customers with global ordering and supply services. Therefore, modern logistics services have a wider scope and are more closely connected with enterprises in the supply chain.
Fifth, modern logistics service companies need a complete logistics network. How to establish and improve their own logistics network is more important than that of an enterprise that only engages in cargo forwarding. Without a perfect network, it is impossible to do a good job in supply chain management and transportation services.