The freight transport sector is vast and diverse, with many operators moving between own-account and third-party transport.
But what does it really mean to work for third parties and what are the regulations that rule this activity?
This article aims to give a comprehensive answer to these two questions. We will explore in detail the world of transport and delivery for third parties, analysing the peculiarities and substantial differences of this service compared to the transport of goods on one’s own account.
In addition, we will present the specific regulations that affect this activity in the world of logistics, as well as the requirements for obtaining a licence to transport goods on behalf of third parties.
Summary:
Freight forwarding: a detailed analysis
What is the difference between own account and third parties in freight transport?
What is transport for hire or reward?
Occasional freight forwarding: what does it mean?
Delivery of goods for hire or reward: regulations and licences
Third-party goods transport licence: what requirements?
What is the difference between own account and third parties in freight transport?
Before getting to the heart of what transport for third parties is, it is first necessary to differentiate this activity from the transport of goods on one’s own account by emphasising its main characteristics.
Own-account transport of goods occurs when a company uses its own vehicles to transport goods it owns or related to its business activity.
On the other hand, transport for third parties refers to the activity of handling and delivering goods on behalf of another entity, usually a company that needs to transfer its goods from one place to another. This means that every logistical activity, starting from the collection to the final delivery of packages, is handled by an external supplier.
What is transport for hire or reward?
Now that we have broadly explained the difference between own-account and third-party transport, let us go into more detail. What is transport for hire or reward more specifically?
Freight forwarding, as we have seen, refers to a service offered by certain specialised companies that transport and deliver goods from one place to another on behalf of a customer.
In this type of transport, the external logistics partner is committed to offering specialised and tailor-made transport services that can range from small package deliveries to more complex and articulated international transport.
In contrast to own-account transport, where the responsibility for the vehicle and the transported goods rests entirely with the company, in third-party transport, both the ownership of the goods and all legal, economic and operational responsibilities related to their handling during transport are temporarily transferred to the external logistics partner.
For this reason, it is essential for companies offering the service of transport and delivery of goods for third parties to obtain a specific licence. The latter guarantees the legality of the operations performed.
Companies operating on behalf of third parties must therefore guarantee not only the timely and safe delivery of goods, but also compliance with all industry regulations, which can vary significantly depending on the country and the specific goods transported.
Occasional freight forwarding: what does it mean?
Occasional transport for hire or reward refers to transport services performed not on a regular basis, but under specific circumstances or for particular needs.
This type of transport is ideal for all those companies that do not need a continuous service, but rather require a flexible, tailor-made solution for sporadic handling of certain goods.
Delivery of goods for hire or reward: regulations and licences
The regulatory environment governing the transport of goods for hire or reward is complex and varies greatly between different geographical contexts and types of goods. Anyone working in the freight-for-hire transport sector as a haulier must comply with the regulations in force.
The key provisions governing this activity include the following:
- driving time limits;
- drivers’ break and rest;
- weekly rest;
- recording and control of the entire activity.
In order to become a haulier for hire or reward, a licence issued by the competent authorities is necessary to carry out the activity in compliance with the law. But what are the requirements for obtaining a third-party haulage licence?
Third-party goods transport licence: what requirements?
In order to obtain this licence, it is first necessary to be registered in the national register of road hauliers. You must also meet certain requirements, which include:
- Professional capacity, which can be demonstrated either by taking part in a specific training course or by holding the professional title of transport manager.
- Moral suitability, or good repute, which states that hauliers must not have a serious criminal record.
- Financial fitness, according to which transport companies must necessarily demonstrate financial fitness in order to maintain efficient and safe operations.
Complying with regulations becomes crucial in an industry where quality of service and security of goods are of utmost importance. For third-party logistics companies, compliance with regulations is essential in order to maintain their operating licence, as well as to build a solid reputation globally.
If you would like more information or need assistance in managing your logistics needs, Sinergy Solution is your ideal partner. Our experience is at your disposal to support you in finding the best solution for your business. Contact us to request a customised service.
