logistics industry

There is a big difference between logistics and express delivery. Logistics usually refers to the transportation of larger items, and the main service target is enterprises. On the contrary, express delivery is usually small items, and the main service target is individuals. Usually, the freight of more than 100 kilograms will be very expensive to choose express transportation. Although the logistics operation is slightly inferior to express delivery in terms of timeliness, it has high safety and affordable freight. The domestic logistics industry is still in a stage of rapid development. There are two main types of logistics companies: dedicated lines and tripartites.

Special line transportation company

Special line transportation, also known as trunk line transportation, refers to the mode of transportation that mainly transports goods between two specific regions, such as Shanghai-Beijing special line transportation.

A dedicated line transportation company is a logistics enterprise that takes one or more dedicated line transportation as its main business, and is also called a dedicated line logistics company or a dedicated line company.

The special line company collects the goods through freight transportation agents and customers of its own manufacturers, and then selects the model for transportation according to the distance and the situation of the goods. Generally, the medium and short lines (within 1,500 kilometers) start to tally and load the trucks at around 8:00 every night, and the long-term lines are normally the next day. In the morning, the goods are tallied and loaded, and after reaching the destination site, the goods are unloaded according to the order of arrival and then arranged for delivery to the receiving location.

The dedicated line company is the actual operator in the transportation industry and undertakes 90% of the transportation capacity of the LTL road transportation business.

At present, there is no domestic logistics enterprise that reaches the whole country with its own vehicles for transportation and distribution, and even the largest logistics enterprise also subcontracts a considerable part of the country to complete the transportation through other special line companies.

Due to the low threshold of the special line company, the large number and the mix of fish and dragons, many shippers are at a loss when it comes to choosing.

(Third-party logistics company)

That is, the cargo transportation agent between the shipper and the special line logistics company. The tripartite logistics company undertakes the national road transportation order and forwards it to various special line companies for transportation, providing the shipper with a wider reachable area, a unified service window and some additional services.

The complexity of the private line transportation market has created a tripartite logistics company, but after a certain period of development, the tripartite encountered the same problems as the private line market.

LTL road transport

Less-than-truckload transportation, also known as stowage transportation. It refers to the transportation method in which the goods from multiple shippers are sent to the dedicated line company for carpooling, and then transported as a whole vehicle, and then delivered separately after arriving at the destination station.

Vehicle transportation

Also called chartered transport. Different from LTL, usually a vehicle only transports one shipment of one consignor, and a suitable vehicle model is arranged according to the situation of the goods for special door-to-door service.

Advantages of chartered trucks: fast timeliness, fewer intermediate operations, reducing the number of loading and unloading of goods and reducing the risks arising from loading and unloading, and the large tonnage of chartered vehicles can also save transportation costs. When the shipper has high requirements on the timeliness, or the weight and volume of the single ticket is large, the LTL transportation is more expensive than the chartered car, or when the goods are more delicate, it is the best way to choose the chartered transportation.

Heavy cargo

There is currently no uniform standard for denser goods. Kenan's definition: 1 ton of cargo is heavy cargo when the volume is less than 3 cubic meters. Heavy goods are priced by weight.

Heavy bubble (pāo) goods

There is no uniform standard for goods with average density. Kenan's definition: 1 ton of cargo is heavy foam when the volume is 3-4.99 cubic meters. Re-buried goods may be priced by weight or volume: usually whichever is higher in total.

Bubble goods

There is no uniform standard for goods with less density. Kenan's definition: 1 ton of cargo is bubble cargo when the volume is 5-9.99 cubic meters. Bubbles are priced by volume.

pure bubble

For goods with very low density, there is currently no uniform standard. Kenan's definition: 1 ton of cargo is pure foam when the volume is more than 10 cubic meters. Pure bubbles are priced by volume.

delivery fee

Also known as pick-up fee, pick-up fee, door-to-door delivery fee. The logistics company arranges the vehicle to deliver the goods to the special line transporter for stowage, and the cost incurred in the process is called the delivery fee. The delivery site is a critical part of the delivery experience. It is necessary to confirm the basic logistics information such as the number of pieces, weight, volume, packaging, and receiving information. Errors that occur during this period will directly lead to abnormalities in the entire following link.

freight

Freight in a broad sense refers to all costs incurred in the process of logistics services;

The freight in the narrow sense refers to one of the components of the logistics cost: the cost of transporting the goods from the unified stowage point of the special line company in the pick-up area to the unloading point (logistics distribution center) of the special line company closest to the receiving place.

Delivery charges

Home delivery fee. The logistics company arranges vehicles to transport the goods from the logistics distribution center to the designated receiving site, and the cost incurred during the period is called the delivery fee.

Premium (Insurance Premium)

The cost of cargo insurance purchased from a third-party insurance company. So that in the event of loss of goods, the shipper can obtain compensation from the insurance company. See the difference between insured and uninsured.

Value-added fees

Fees for optional various additional services, such as nail rack packing services, upstairs delivery services, loading and unloading truck services, etc.

Secondary delivery fee

Charges for a second or multiple deliveries due to failed deliveries. Usually, before the goods are ready to be loaded and delivered at the destination station, the consignee will be notified by phone to inform the delivery situation. If the consignee is temporarily unable to receive the goods, the delivery person should be notified in time to avoid secondary delivery charges.

waiting fee

When picking up and delivering goods, if the pick-up and delivery personnel wait for more than 1 hour due to various reasons of the sender and receiver on the spot, additional compensation will be required.

Loading and unloading fee

The main difference between logistics and express delivery is that logistics mainly transports bulky goods. The loading and unloading of bulky goods requires a lot of manpower and material resources. Therefore, the packaging and unloading services of logistics usually appear in the form of value-added services. When packaging and unloading are required, loading and unloading will occur. car fee.

Logistics distribution center

Each dedicated line company will set up a point in a certain area to receive and unload goods to form a market, which is called a logistics distribution center.