Brisbane Freight FAQs

31 Jan Brisbane Freight FAQs

1. What is the difference between a freight company and a transport company?

A freight company typically refers to a business that specializes in the transportation of goods via trucks, trains, ships, or air. This type of company typically focuses on the movement of large quantities of goods or cargo, often for commercial purposes.

A transport company, on the other hand, may refer to a business that provides transportation services for people or goods, and can include freight companies but also can include companies that provide public transportation or transportation for individuals, such as taxi or ride-sharing companies, charter buses, and more.

In summary, a freight company is a specialized type of transport company that primarily focuses on the transportation of goods, while a transport company can be more general and may offer a wide range of transportation services

2. What is freight Forwarding?

Freight forwarding is the process of arranging for the transportation of goods from one place to another. A freight forwarder is a third-party logistics provider (3PL) that acts as an intermediary between a shipper and a transportation service provider, such as a shipping line, trucking company, or airline.

The freight forwarder’s role is to coordinate the various aspects of the shipment, such as arranging for the necessary transportation, handling customs clearance and other regulatory requirements, and providing warehousing and distribution services if needed. The forwarder also acts as a liaison between the shipper and the carrier to ensure that the shipment is transported in a timely and cost-effective manner.

The freight forwarder can also provide added value services such as logistics consulting, cargo insurance, cargo tracking and reporting, packaging and crating, cargo consolidation and deconsolidation, freight audit and payment, and more.

In summary, a freight forwarder is a company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

3. Are there any downsides to working with smaller companies vs larger (national) freight companies?

Working with a small, local freight company can offer several benefits for small and medium-sized enterprises (SMEs), particularly when compared to dealing with larger, national companies.

Personalized service: Small, local freight companies tend to be more hands-on and personal than larger, national companies. They often have a smaller customer base, which allows them to provide more individualized service and attention to their clients.

Flexibility: Small freight companies are often more nimble and able to adapt to changing needs and situations, which can be particularly beneficial for SMEs that may have more unique or specialized transportation needs.

Cost-effective: Small local freight companies are often more cost-effective, they may have more competitive pricing, and they can offer more customized solutions that better fit an MSE’s budget and needs.

Local Knowledge: they usually have more knowledge of the local geography and regulations, which can make the process of shipping goods easier, more efficient, and more cost-effective.

Responsive: Small freight companies tend to be more responsive than larger, national companies, which can be especially important for SMEs that may have urgent or time-sensitive shipping needs.

Relationship: Building a personal relationship with a local freight company can make the process of shipping goods less stressful and more comfortable.

All that being said, working with a large, national freight company is advantageous if you’re shipping nationally; but for others, staying local and supporting local is in your best interest.

4. Why have freight costs increased so much in recent years?

Many factors have contributed to the recent increase in freight costs for local carriers, some of them are:

Rising fuel costs: Fuel prices have been fluctuating, and have been on the rise, this increased cost is passed on to the shippers and the transportation companies.

Labour costs: Shortage of drivers in certain regions or even in the whole country, increased competition among companies for a limited pool of drivers, and regulations like minimum wage hikes can all contribute to increased labour costs which in turn increases the freight costs.

Insurance costs: As the freight industry becomes increasingly complex and globalized, insurance costs have been rising to cover a greater range of risks and regulations.

Increased maintenance and equipment costs: The cost of maintaining equipment has risen along with the price of parts, labour and the maintenance itself.

E-commerce boom: with the increasing demand for online shopping, e-commerce has generated an increased demand for last-mile delivery services, which are more expensive than traditional bulk shipping methods.

Government regulations: Compliance with new regulations can be costly for businesses, such as compliance with new safety regulations, emission regulations, and changes in trade agreements.

Natural disasters: extreme weather events can disrupt shipping lanes and damage transportation infrastructure, causing increased costs and disruptions to the supply chain.

All of these factors can contribute to an increase in freight costs for local carriers. With most of the above factors out of their control, local carriers have no other option but to pass on the increased costs to the shippers.