What is the difference between international logistics and freight forwarding?

1. Identify differences
Freight forwarders can be specific to freight forwarders such as sea freight forwarders and land freight forwarders, and can provide a "door-to-door" transportation proxy pattern. In fact, the job of a freight forwarder is to entrust, which does not require network operations and does not have its own bill of lading. It can only complete the flow of people and operations for all goods from point to point at a certain point, and the fees charged are basically derived from price differences or agency fees.
However, customers generally have high requirements for international logistics enterprises. International logistics mainly utilizes modern management, advanced technology, and a vast business network to connect the links of freight transportation, forming a logistics system for overall management. By utilizing external resources of the enterprise to achieve resource allocation, fully utilizing the efficiency of system functions, realizing the rationalization of overall logistics, continuously meeting customer needs, and dynamically charging based on services.
2. Different service contents
Freight forwarders usually take customer instructions as the starting point and only provide extended transportation services according to customer requirements. They do not intervene in the internal affairs of the enterprise, but are only an external commission relationship. Compared to this, this service is passive.
International logistics operators may own their own transportation vehicles, warehousing facilities, loading and unloading machinery or hardware facilities, but do not own their own goods and are a separate operator.
3. Different legal status
From the current specific practices of international freight forwarder, some of the businesses entrusted by the entrusting party are undertaken in their own name, and some of them act as intermediaries to facilitate the transactions between the entrusting party and the third party. Therefore, there are three types of nature and status of freight forwarders:
(1) The freight forwarder does not disclose the principal, but enters into a contract with a third party in their own name. At this time, the freight forwarder represents the undisclosed principal. If there is a dispute, the third party will generally sue the freight forwarder.
(2) The freight forwarder states that they are the representative of the principal and does not indicate who the principal is. The third party can only sue the principal, but if the freight forwarder is unwilling to disclose who the principal is, the third party can also sue the freight forwarder first.
(3) If the freight forwarder not only discloses that he represents the principal, but also indicates who the principal is, the third party can only sue the principal when dealing with liability disputes.
International logistics providers are a complex role that carries multiple functions across numerous industries. They are not simply classified as legal agents like freight forwarders, nor do they have the carrier status specifically granted by law like transportation providers. As the organizer and commander of the entire logistics service, it is responsible for the entire logistics process from transportation to warehousing, involving complex contractual relationships and significant responsibilities.
From the perspective of legal relations, the operation of international logistics providers is mainly divided into two types: the logistics service general contract relationship between international logistics providers and service demand providers, and the subcontracting relationship between international logistics providers and subcontractors. Almost all logistics entity services of managed international logistics providers are completed through outsourcing. There are many logistics circulation links, belonging to different traditional industries and departments, and each has its own corresponding legal norms. Therefore, there are certain limits and protections for the contractor's liability principles and limits in subcontracting contracts.