August 10, 2021

Logistics vs Freight Forwarding: What Sets Them Apart

Most people new to shipping confuse logistics and freight forwarding. Yes, both deal with moving goods, but they aren’t the same. Understanding their differences lets you pick the right partner for your business needs.

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What is Logistics?

Logistics encompasses the entire supply chain: planning, executing, and managing how goods move and are stored from origin to destination. Key areas include:

  • Transportation (road, sea, air)
  • Warehousing and inventory management
  • Distribution and delivery to final customers
  • Integration of systems (tracking, tech, coordination)

Goal: get goods to the right place, at the right time, cost-efficiently.

What is Freight Forwarding?

Freight forwarding is a subset within the shipping world. Freight forwarders act as middlemen: you hire them to arrange transport on your behalf. Their services usually cover:

  • Carrier selection (which ship, airline, truck)
  • Route planning and optimization
  • Customs clearance and documentation
  • Cargo insurance

But they usually don’t manage your warehouses or handle last-mile delivery (unless they offer combined services).

When They Overlap / Work Together

Sometimes you’ll need both. E.g.:

  • A freight forwarder handles the international part of the ship, gets the goods to destination port.
  • A logistics provider then takes over for warehouse storage, domestic distribution, or final delivery.

Combo usage often gives smoother operations, cost balance, and better service.

Which Should You Use?

Choose logistics if you want end-to-end control: managing inventory, warehousing, distribution, and so on.

Choose freight forwarding if you primarily need someone to get your goods across borders, handling customs, transport, and carriers, while you manage shipping endpoints separately.

Final Thoughts

Understanding the difference helps you avoid paying for services you don’t need or choosing partners who can’t deliver the full scope you require. If you run a business with frequent international shipping, you may need both: a freight forwarder + a logistics solution.