Logistics

Logistics in foreign trade refers to the overall activities involved in the physical movement of goods from the exporter to the importer, including transportation, warehousing, loading and unloading, packaging, distribution, and related information processing. Its core objective is to deliver goods to the designated location at the agreed time, quantity, quality, and cost. Usage scenarios include: delivery terms in trade contracts, transportation arrangements, selection of freight forwarders and shipping lines, customs clearance, and last-mile delivery. Notes: Logistics is not equivalent to transportation; transportation is only one part of logistics. Logistics also covers warehousing, inventory management, order processing, and reverse logistics. Difference from supply chain: The supply chain has a broader scope, including procurement, production, sales, logistics, information flow, and capital flow; logistics is the execution part of the supply chain. Difference from freight forwarding: A freight forwarder is one of the logistics service providers, responsible for booking space, customs declaration, transshipment, etc., but logistics can also be operated by enterprises themselves or by third-party logistics companies as a whole. Foreign trade practitioners should pay attention to logistics costs, timeliness, cargo damage risk, and the division of logistics responsibilities under trade terms such as FOB and CIF to avoid breach of contract or extra costs caused by improper logistics arrangements.