What is the difference between logistics and freight forwarding? (2024)

May 19, 2020

What is the difference between logistics and freight forwarding? (1)

While freight forwarders and logistics companies may seem similar or even synonymous, there are some differences between the two to keep in mind. Unlike logistics companies, freight forwarders might be partners with a network of logistics companies, but they do not own any assets themselves.

What Is a Freight Forwarding Company?

Freight forwarders tend to partner with several logistics companies either nationally or internationally, which means that price checking capabilities are far better and more thorough than what you would get when working directly with one logistics company. Freight forwarders also have more knowledge and experience around specialty companies, which often vary greatly regarding types of transport, house moving, fragile goods, and lead times, among other elements.

What Is a Logistics Company?

Logistics companies, unlike freight forwarders, own all of their own assets including intermodal fleets of trucks, boats, or planes, but without any access to actual shipping routes. Logistics companies often specialize in specific areas such as dry box, long haul, cold storage, intracity, or large scale. At the same time, they’ll attempt to cover every aspect of the supply chain.

Generally, a logistics company is responsible for managing goods’ physical movement along the supply chain. In some cases, they may also manage documentation.

What are the Benefits of a Freight Forwarder?

There are multiple benefits of working with a freight forwarding company as opposed to a logistics company. The advantages include:

  • A network of multiple logistics companies that helps reduce prices with more diversity
  • Technology-based freight forwarders can provide instant quotes
  • Pricing is more transparent, as most freight forwarders will provide customers with in-depth breakdowns of all costs
  • Maintain data regarding specialty routes along with route optimization to help minimize delays and ensure timely arrival of goods
  • Have a good understanding of logistics companies in many different specialty areas, including household goods, fragile goods, cold storage, and others

In addition to these benefits, freight forwarders can also handle all of the paperwork associated with freight forwarding, including customs documentation, bills of lading, shipper’s export declarations, insurance forms, and letters of invoice.

What is the difference between logistics and freight forwarding? (2)

Why You Should Turn to Carson for Reliable Freight Forwarding

Supply chains need freight forwarders that have a good understanding of the goods involved, along with the various suppliers and trade routes. Carson International can give you top-tier customer service and dependable solutions regardless of your needs. Some of the specific advantages you’ll get with Carson include:

North American Coverage

With offices located in Toronto, Montreal, Washington, and Vancouver, Carson can meet all international freight needs.

Global Coverage

Carson has a dedicated network of logistics partners all over the world, which provides optimal international coverage via all major global logistics hubs.

Asia-Pacific Specialists

Carson specializes in cargo management through the Asia-Pacific logistics hub, with many years of experience using this trade lane.

Best-in-Class Tracking Software

We maximize the visibility of your shipment across the supply chain using some of the best tracking software available. You can easily access and view all shipment documentation, reports, and billing information using our convenient web app.

Customizable Solutions

Depending on your specific needs, we can customize a solution to proactively identify and resolve issues anywhere in your supply chain.

All of these advantages can make Carson International an invaluable asset to your operations as a leading freight forwarder.

What is the difference between logistics and freight forwarding? (2024)

FAQs

What is the difference between logistics and freight forwarding? ›

Logistics manages most of the responsibilities of the supply chain, from planning and execution to resource management and delivering goods to the final destination. Freight forwarders handle the transportation of goods from the warehouse or one point to the final destination or the customer's doorstep.

What is logistics and freight? ›

Logistics management and freight management are common terms that are highly used in different types of business. These terms logistics and freight are completely linked with the transportation and movement of business products with the aid of various modes of transport such as the ocean, air, rail, and truck.

What is the difference between a freight company and a logistics company? ›

Logistics companies, unlike freight forwarders, own all of their own assets including intermodal fleets of trucks, boats, or planes, but without any access to actual shipping routes. Logistics companies often specialize in specific areas such as dry box, long haul, cold storage, intracity, or large scale.

What is the difference between 3PL logistics and freight forwarding? ›

The Biggest Difference Is Service

A freight forwarder is a specialist focused on moving goods between two locations. A 3PL is a specialist in managing your logistics needs, which often includes moving the same products. Third-party logistics providers typically offer many more services than a freight forwarder.

What is the difference between shipping and logistics? ›

Shipping is the physical movement of your goods from one destination to another (e.g., from a warehouse to your customers) and one of many logistics processes. Logistics refers to the synchronized processes that manage how your products are acquired, stored, and transported to their final destinations.

Is freight considered logistics? ›

While both manage the goods, logistics will focus on the quality, quantity and fleet management, and execution of goods. In contrast, the freight forwarders look over the transportation, documentation, policy and tracking of goods.

Does freight come under logistics? ›

Storage and order picking occupy most of the warehouse maintenance cost. Freight transportation forms a vital part of logistics and allows access to broad markets as goods can be transported to hundreds or thousands of kilometers away.

Why is trucking called logistics? ›

Acting as a third party, logistics trucking companies offer a variety of services to streamline the process of moving goods to their destination. Logistics refers to the act of coordinating this movement and frequently involves gathering information, managing inventory, warehousing and transporting.

Why do trucking companies call themselves logistics? ›

Many trucking companies are called logistics companies these days because of two primary reasons: Logistics sounds sexier than just being a trucking company. It implies a higher level of services, broader reach, bigger capabilities, etc which they hope translates to more customers and higher profits.

Can a trucking company be called logistics? ›

A trucking logistics company is an organization that, on behalf of its clients, handles various supply chain processes to get freight where it needs to be safely and efficiently.

Can a 3PL be a freight forwarder? ›

Yes, a 3PL can operate as a freight forwarder as part of their broader range of services, managing the shipment of goods and handling customs clearance, among other responsibilities.

Is a freight forwarder a 3PL or 4PL? ›

Second Party Logistics (2PL): These are the carriers. From the steamship & airlines, to the railroad operators, to the trucking companies hauling the freight. Third Party Logistics (3PL): The freight forwarders, customs brokers, couriers, trucking companies, and warehouses.

Is freight forwarding 3PL or 4PL? ›

Freight Forwarders focus on the transportation of goods, while 4PL providers offer a more comprehensive management role, overseeing and coordinating the activities of 3PL providers to align with the client's strategic goals.

Is FedEx considered logistics? ›

The FedEx Logistics operating segment plays a key role within the FedEx portfolio with a comprehensive suite of integrated logistics solutions, providing air and ocean cargo transportation, specialty transportation, customs brokerage, and trade management tools and data through FedEx Trade Networks Transport & ...

What is logistics basically? ›

Logistics refers to the movement of goods from Point A to Point B, which entails two functions: transportation and warehousing. The overall supply chain is a network of businesses and organizations working in a sequence of processes, including logistics, to produce and distribute goods.

What does logistics do? ›

Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility. Logistics managers are referred to as logisticians.

What does logistics mean in a job? ›

Logistics is a discipline focused on maintaining, receiving, and delivering goods on time. Logistics professionals typically work in warehouses, but also may work at airports, hospitals, and other facilities that require precise coordination.

What's logistics do? ›

Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. The goal of logistics is to meet customer requirements in a timely, cost-effective manner.

Is logistics the same as trucking? ›

A Trucking company is defined as one that offers shipping services and moves goods from one place to another usually through trucks. A logistics company on the other hand is a transportation service provider that offers logistics services including warehousing, packaging, distribution and delivery.

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