What is the difference between logistics companies and freight forwarding companies ?

Logistics and freight are common terms that are used in various business sectors, especially in sectors that depend on the transportation of goods and international trade.

While it may seem to everyone that logistics services and shipping companies are similar in meaning or synonymous, there is a difference between both of them that we must keep in mind.

Unlike logistics companies, we find that freight forwarders are partners with multiple groups of logistics companies, but they do not own any of their own assets, unlike logistics companies.

What are shipping companies?

Freight forwarding companies are those companies that partner with multiple logistics services companies on a local and international scale, in order to carry out their business in transportation and freight services.

Because shipping companies partner with a network of logistics companies, this helps them to offer different price offers to their customers, which are more comprehensive than what might be obtained when working directly with one logistics company.

Also, shipping companies have great knowledge and experience about companies specialized in the fields of logistics services, which we often find vary greatly regarding types of transport, whether sea transport, truck transport, rail transport, or air transport, as well as in the prices provided. For each service of them, and how to use any of them according to the type of goods being transported or the destination to which the shipments will be transferred.

What are logistics companies?

Quite the opposite of shipping companies, we find that logistics companies own all their own assets, including fleets of trucks, boats, or multimodal aircraft, and their storage facilities.

We find that logistics companies are well suited to providing a range of transportation and logistics functions within a business's supply chain.

Logistics companies often specialize in specific areas such as long-distance, intermodal, or large-scale transportation, as well as cargo insurance. At the same time, they try to cover every aspect of the supply chain.

What distinguishes shipping companies from logistics companies?

There are several advantages to working with a freight forwarding company rather than a logistics company. The advantages include:

  • The freight company deals with a network of multiple logistics companies, which helps it to provide low-priced services, as well as more diversity.
  • Approved shipping companies can have technology that helps them provide instant quotes to their customers, such as registering customer orders on their websites.
  • The pricing process in these companies is more transparent, as most shipping companies provide their customers with all in-depth details of all costs related to the shipping process.
  • These companies can keep data on different routes and paths, which makes them able to provide the best path for their customers to help reduce delays and ensure the arrival of goods in a timely manner.
  • Shipping companies have teams of experienced experts in packaging and processing shipments and dealing with the customer directly, that is, providing door-to-door service in an effective manner that is not found with logistics companies.
In addition to these benefits, freight forwarders can also handle all the paperwork associated with shipping freight, including customs documentation, bills of lading, shipper's export declarations, insurance forms, and letters of invoice.


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