What is the difference between a freight forwarder and a shipping company?
A shipping company (carrier) and a freight forwarder both help move cargo, but they play very different roles.
Here is a simple analogy – Think of shipping a package internationally:
- A shipping company is like the airline that flies the package.
- A freight forwarder is like a travel agent for cargo: they choose the airline, prepare paperwork, arrange pickup and delivery, and coordinate the entire trip.
What a freight forwarder does
A freight forwarder may:
- Book space with ocean carriers, airlines, trucking companies, or rail operators
- Prepare shipping documents
- Handle customs clearance
- Arrange cargo insurance
- Consolidate shipments from multiple customers
- Coordinate door-to-door delivery
Examples of freight forwarders include:
- DHL Global Forwarding
- Kuehne+Nagel
- DB Schenker
What a shipping company does
A shipping company (ocean carrier) may:
- Own or operate container ships
- Transport containers between ports
- Issue the carrier's bill of lading
- Manage vessel schedules and cargo capacity
Examples include:
- Maersk
- MSC Mediterranean Shipping Company
- CMA CGM
Which should you use?
- If you're an importer or exporter and want someone to manage the logistics, customs, and carrier selection, use a freight forwarder.
- If you have significant shipping volume and want to book transportation directly, you can work with a shipping company.
In practice, many businesses book through a freight forwarder, who then books space with the shipping company on their behalf.
Freight Mart International
Address: 45 Miguel Rd, Bibra Lake WA 6163
Phone: +618 9435 3100
Website: https://freightmart.com.au/