Is There a Difference Between Logistics and Freight Forwarding?

Logistics and freight forwarding are two terms associated with shipping and the supply chain as a whole, but they are not interchangeable.  Although they are closely related and often work hand-in-hand within the supply chain, there are subtle differences, and understanding their distinct roles can help businesses maximize efficiency.

Freight forwarding is when a separate person or company manages and organizes the movement of cargo on your behalf. These companies often have exceptional knowledge of delivery routes, types of transport, and international documentation, including cargo insurance and insurance claims. Freight forwarders do not own their trucks or storage space but instead, leverage their established relationships with carriers to find low-cost rates for each delivery.

Logistics, on the other hand, refers to managing the flow of goods as a whole and includes aspects such as inventory management, transportation, warehousing, packaging, disposal, and security. Another difference is that logistic service companies generally provide their own services in-house (such as co-packing or transportation) rather than coordinating the services like a freight forwarding company would.

For example, a retail business selling clothing would likely partner with a 3PL warehouse for logistics services, such as warehousing and custom packaging. The logistics provider may also perform local deliveries, but for international or cross-border orders, the retail company will likely partner with a freight forwarder to get the best rate and fastest delivery.

In short, logistics encompasses the broad scope of managing the flow and storage of goods across supply chains, while freight forwarding focuses specifically on arranging the transportation and storage of goods on behalf of shippers. Freight forwarding is, therefore, a specialized subset of logistics, dealing primarily with the coordination and shipment of cargo across multiple carriers and modes of transport.

Freight Xperts specializes in Vancouver 3PL warehouse services and trucking across North America. We specialize in Vancouver 3PL Warehousing services, full truckload and less than truckload services including dry van, temperature controlled, and flatbed, plus cross-border shipping.

Our goal is to provide the highest level of service in the most cost-effective manner possible for the warehousing and trucking of your products ranging from single pallets to full truck loads.