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What Do Transportation Companies Do?

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What is a transport company and what do they do? Our informative guide answers these questions and looks at the benefits of hiring a transportation company over shipping products yourself. 

What is a transport company?

Transport companies are predominantly concerned with the movement of goods and people. As an industry, it is a subgroup of the industrials sector according to the Global Industry Classification Standard (GICS). This means that the phrase ‘transportation companies’ is an umbrella term encompassing a range of companies and industries that are concerned with movement from point A to point B. So, there isn’t one answer to the question above – a transportation company could be anything from a local coach hire to an international courier.

Transportation companies can be split, roughly, into two categories:

  • Transportation of goods – not to be confused with freight forwarding, a number of companies in the transportation sector move goods via air, sea and land. Examples of transportation of goods include couriers.
  • Transportation of people – in general, transportation companies are concerned predominantly with the movement of people whether that be via air, sea or land. Examples of transportation of people include taxi services, airlines, train companies and more. 

Benefits of Transportation Companies for Goods.

If you are looking to ship your goods around the country or even the world, you will probably look into two options – transporting the goods yourself, or hiring a transport company to do this for you. There are many benefits of choosing an outside company to help you: 

  • Saves on shipping costs – buying the equipment necessary to do your own shipping can be expensive – you need to buy the transport and hire a driver/pilot, as well as many more costs. By hiring a transport company, you will keep costs down for both you and your customers. 
  • Reliable shipping – by hiring a transportation or logistics company, you can rely on people who know what they are doing and are motivated to get the job done as efficiently as possible. 
  • Flexibility – a transportation company provides the ability to scale up or scale down quickly and easily to meet your business needs.  
  • Expert know-how – given that transportation companies spend all their working time on moving goods and services from point A to point B, it stands to reason that they are the experts. Getting help from a transportation company will give you access to new knowledge. Choosing a logistics company will also help you manage the planning, implementation, the transportation and storage of goods and services.

Are you looking for a transport company? Learn more about our transport and logistics service online or exploring our packaging products. Alternatively, you can contact a member of our team here at Lesters Logistics to find out more about transport companies.