Published on:

02.09.2025

What is the difference between freight forwarding and logistics?

Very often, the words “freight forwarding” and “logistics” are used incorrectly in our language. The two terms are often confused and mistakenly substituted for one another. In essence, however, their meanings are different – and actually very simple to remember. In the following lines, we will try to explain in plain language what the difference between the two is, as well as what the main characteristics of each activity are. At the end of the article, we will also give you some practical tips for choosing your first freight forwarding and/or logistics company.

What is forwarding?

Freight forwarding is a service that manages the transportation of goods from the point of origin to the final destination. The word refers more generally to the activity itself, while a “freight forwarder” designates the service provider – a company or an individual. A forwarding company can be the one actually performing the transport, or one that uses external resources to organize the process. Sometimes, freight forwarders work with a partner network of logistics companies through which the actual transportation is carried out.

Regardless of the method, the ultimate goal of freight forwarding is that the cargo arrives on time and in excellent condition. To ensure this, clients sign clear contracts with the forwarding company of their choice. Fees typically cover unloading, documentation preparation, waybill handling, intermediate unloading and loading, customs clearance, and more.

What is logistics

Logistics concerns, plans, executes, and manages all processes that need to be carried out in order to achieve a major operational goal. Management may involve people, materials, energy, capital, services, or other resources. The task of logistics is to organize and perform these processes in the most optimal way, meeting the needs of the client.

In terms of transport, logistics covers all resources and actions required to reach the final destination. This may include:

Domestic and international transport
Carriage of different types of cargo
Customs representation
Documentation handling
Warehousing and consolidation of goods
Security services

Logistics companies operate with their own vehicle fleet and/or subcontractors.

The most important aspect of logistics is to use all available resources to ensure high-quality transportation at minimal cost. To achieve this, providers must have extensive knowledge of the market, its challenges, competitors, as well as up-to-date information on different routes and the requirements of specific transport lines.

Membership in various international transport associations is also a significant advantage, as it provides preferential conditions and additional support in unforeseen situations.

Forwarding or logistics?

Both types of services are suitable when carried out by experienced specialists and when they meet your requirements and budget. The most important factor in choosing a freight forwarding or logistics company is to pay attention to the quality of services and experience in the industry. In addition, we recommend comparing different providers of forwarding and logistics according to the following criteria:

Regulated and licensed activity
Experience in the sector
Compliance with deadlines
Partnerships with major companies and international transport associations
Option for warehousing goods
Favorable terms and clear clauses in the contract

If you run your own business and are looking for the most cost-effective delivery option for your customers, we recommend turning to companies that provide end-to-end services. Such firms will take care of your requests from the moment the order is received until the shipment reaches the final customer.

These companies are the most modern and cost-efficient partners for any business, whether you operate a physical store or entirely online. They take full responsibility for deliveries and provide you with the most valuable resource of all – free time for growth and creativity.