As the demand for freight transportation continues to grow, shippers increasingly outsource logistics and distribution to third-party providers, who then use a variety of modes to move their cargo from point A to point B. The traditional shipper's role in transportation was to decide which mode of transport to use and choose, but the new paradigm places responsibility for logistics on the third-party provider. With a few key exceptions, logistics broker must meet certain specifications. The primary difference between these two types of services is how they are provided. A freight transportation service can include towing a vehicle. A tow truck operator that provides car boosting does not provide a freight transportation service, since they do not transport tangible personal property. In this case, the towing service may also include other services, such as arranging for a tow truck to arrive at a customer's location. If you want to know more about the different types of services offered by towing services, continue reading. The modern day business is based on a multi-modal approach that takes the time and effort required to transport goods, but also makes it possible to combine modes for greater efficiency. The American Presidents Line, for instance, developed double-stack trains to transport goods quickly and efficiently. While steamship lines tended to rely on a single mode of transportation, they also found that landbridged operations allowed them to save time and money, making the use of multiple modes possible. The mode of procurement is the method by which transportation services are procured. The most common mechanism is the reverse auction. It is based on the purpose for which the transportation service is required. Spot and contract markets are different types of services. Spot market is for one-time services while contract market involves transportation requests that last for a fixed time period. If your transportation service needs are primarily for a particular time period, then a contract is the best option. The private sector seeks reliability, cost-effectiveness, efficiency, and flexibility when acquiring a third-party logistics service. Similarly, the US Department of Defense seeks to achieve better performance in the movement of personnel and freight. While the private sector is looking for a variety of options, the private sector is always interested in maximizing their return on investment. These three factors make the process of outsourcing freight transportation much easier and convenient for both parties. While back hauls remain a problem for many shippers, carriers continue to innovate and implement new technology to ensure a safe and reliable service. The container revolution and the double-stack technology have both accelerated innovation and efficiency. By integrating international and domestic equipment pools, shippers and carrers are improving the ability to balance export and import movements while minimizing trade routes imbalances. In turn, this will increase the reliability of a freight transportation service. The interlining rules apply when the shipper engages more than one carrier in a continuous movement of goods. The shipper may hire several carriers to move goods, but only one carrier is responsible for billing the shipper and the consignee. This arrangement is commonly referred to as interlining and is zero-rated under the interlining rules. So, how do you choose the right freight transportation service? A quick Google search will provide you with many results. For more useful reference view this website https://en.wikipedia.org/wiki/Shipping_agency.shippers and carriers
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