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What is the difference between logistics and freight forwarding?

The terms’ logistics’ and ‘freight forwarders’ are often used interchangeably without knowing the difference between the two. 

Let us dive in to look at their differences.

What is Logistics?

Logistics is the department within a company that ensures that goods are available when and where they are needed. The companies themselves manage logistics departments. 

Logistics is the overall process of managing how things are bought, stored, and moved to where they need to go. 

Logistics management involves finding potential distributors and suppliers and figuring out how good and easy they are to reach. Logisticians are people who work as logistics managers.

Types Of Logistics

Logistics management is a mix of many different tasks. Logistics management can be broken down into the following categories based on the tasks that are done:

  • Supply management

It determines how many goods need to be sent to a particular place. 

It involves looking at how the market is doing and doing complicated math to figure out how much of a good is needed in a particular place at a specific time. 

For example, a construction company might need bricks, cement, etc.

  • Distribution and Transportation Management

Management of distribution or transportation includes figuring out how to get the goods to a particular place. The type of goods to be moved and where they need to go will determine the best way to move them. 

For example, if the goods need to be sent within the country, they are moved by truck. If the goods need to be sent outside the country, they are moved by ship. Pipelines can also be used to move liquid goods like oil and gasoline.

  • Production Management

Production logistics includes turning raw materials into finished products. It also ensures that the product gets put together if the company has an assembly line.

  • Reverse Logistics

Once the goods are made, the reverse logistics ensure that the moved extra material can be used again. 

For example, a company that makes leather sends its extra leather to a company that makes belts to be reclaimed. 

The reverse logistics department is in charge of getting this stuff back.

What is Freight Forwarding?

Freight forwarding is getting goods from one place to another using a single or multiple air, sea, rail, or road carriers.

Freight forwarding is based on the idea that goods should be moved quickly. And cheaply while staying in good condition throughout their journey. 

Freight forwarders in Dubai become experts at managing the logistics needed to ensure goods arrive on time. 

You need to have the right tools to trade and ship successfully in growing globalized markets.

Types Of Freight Forwarding

Logistics is a department managed by the logistics company in Dubai. While the freight forwarding company specializes in making goods available at a particular place. 

The following are the types of freight forwarding companies:

  • Rail freight services

It is possible to transport goods over vast distances by rail freight. Railway freight forwarders ensure the safe transport of goods.

  • Sea Freight Forwarders

Sea freight services involve transporting goods in large sea vessels using cargo ships. It facilitates the transport of goods across borders. Moreover, it is a cost-effective way to transport goods.

  • Air Freight

The fastest freight service is air freight. Saving time is one of the benefits. Transporting goods by this method is expensive.

  • Road Freight Service

It is the most common service for moving freight. Goods are moved around with the help of delivery trucks and vans. How long it takes depends on how much traffic there is and how good the roads are.

The Role Of Logistics & Freight Forwarding Services

One way to explain the idea of logistics is with an example. Let’s say there is a company that makes leather. He has a lot of customers in many cities. 

How is he going to sell leather to people in other states? 

Goods can’t move from one place to another. Customers must be able to buy goods. This is the most important thing that a business must do. 

Freight forwarding and logistics are the services that ensure goods are available at the right place, at the right time, and in the right amount. 

What’s the Difference Between Logistics and Freight Forwarders?

People usually look for someone who can meet their needs when they want to know the difference between a freight forwarder and a third-party logistics provider. 

Freight forwarders are experts at moving goods from one place to another. 

A third-party logistics provider, or 3PL, is an expert at managing your logistics needs, which usually involve moving the same products.

Most of the time, freight forwarders offer less than third-party logistics companies. The 3PL will protect and support the goods from when they are stored until they are delivered to the end user. 

This process can be repeated if the customer sends the product back.

A 3PL has a closer relationship with your business and is essential to customer service and satisfaction. 

When someone buys from you, a good 3PL will help you get your warehouse and items ready before an order is placed. Get you the best shipping rates and complete orders, and make sure the right package gets to the right person.


Logistics and freight forwarding are similar processes. Some companies provide both freight forwarding and logistics services. 

Generally, logistics is the more extensive process. Logistics refers to the planning and management of the movement of products and materials from point A to point B, while freight forwarding refers to the actual shipment of the product. 

Logistics is the process of getting an item from point A to point B, while freight forwarding is a specific method of shipping an item.

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