Do you know there are approximately 10,000+ shipping and 100,000+ freight forwarding companies in the world (Statista, Mordor Intelligence)? With such a large number of firms, it is difficult for ordinary people to know the difference between shipping and freight forwarding companies.
If you are an individual, investor, or business owner, you must educate yourself on shipping knowledge, so you can stand apart from others. Alliance Shipping has launched Learn Logistics with Alliance Shipping, so you can get all the necessary information related to shipping and answers to common FAQs. In this informative article, we will discuss the difference between shipping and freight forwarding.
A Look at the Basics
To get a better understanding of the difference between shipping and freight forwarding, you must know what shipping and freight forwarding are.
What is Shipping?
Shipping is not a singular concept, but has multiple perspectives. The term shipping in logistics means the process of moving any physical item, small or bulky, from one point to another via sea. Learn more about what shipping is.
There are 4 main types of shipping:
- Sea Shipping
- Air Shipping
- Land Shipping
- Rail Shipping
Here’s more to the types of shipping.
A common question arises: What is a shipping company?
A shipping company is a business that specializes in moving physical items regardless of their size, typically by sea, but sometimes also by air or land, across international borders. These companies own or operate vessels (like cargo ships or tankers) that carry containers, bulk goods, oil, or other materials.
Their primary responsibilities include:
- Managing cargo transport logistics from port to port
- Operating or leasing vessels & ensuring they meet safety and environmental standards
- Coordinating with ports, customs, and regulatory bodies
- Ensuring timely & efficient delivery of goods for clients
What is Freight Forwarding?
Freight forwarding is the process of organizing and managing how goods are transported from one place to another. It includes every aspect, from choosing the right method of transport to handling paperwork and ensuring the shipment arrives on time and in good condition.
People usually ask, Is freight the same thing as shipping? No, it isn’t. To see the bigger picture, take a closer look at freight forwarding.
Types of Freight Forwarding:
There is no such thing as types of freight forwarding – there are just standard cargo shipping methods. The freight forwarder will arrange the right type of vehicles depending on your cargo shipping needs.
What is a freight forwarder or freight forwarding company?
A freight forwarder is an individual or a company that specializes in international trade and moves goods across borders for clients. They don’t own the trucks, ships, or planes themselves, but they work with all the companies that do (airlines, shipping lines, trucking companies).
Their primary responsibilities include:
- Organizing multi-modal transport
- Handling shipping and customs documents
- Managing customs clearance
- Offering cargo insurance and risk management
Difference Between Shipping and Freight Forwarding
| Aspect | Shipping | Freight Forwarding |
| Definition | Transporting goods | Coordinating the shipment |
| Function | Physical delivery | End-to-end logistics management |
| Responsibility | Carrier moves the cargo | Forwarder organizes the shipment |
| Documentation | Basic transport docs | Full paperwork handling |
| Customer Involvement | More DIY | More hands-off |
| Flexibility | Limited options | Offers best-fit solutions |
| Value-Added Services | Rare | Common (insurance, packaging, warehousing) |
In summary, shipping companies are responsible for the physical movement of goods while freight forwarders manage the entire logistics process from origin to destination. Freight forwarders don’t operate their own transport vehicles but work closely with carriers, customs agents, and warehouses to ensure smooth, compliant, and timely delivery.
For businesses or individuals seeking a more hands-off, flexible, and comprehensive solution, freight forwarders often provide greater value through added services like customs clearance, cargo insurance, warehousing, and route optimization. On the other hand, if you simply need to move goods from point A to B and can handle the logistics yourself, working directly with a shipping company might suffice.
Ultimately, the choice depends on your logistics experience, shipment complexity, and the level of support you require.
The Role of Alliance Shipping as a Freight Forwarder
At Alliance Shipping, we specialize in providing reliable, end-to-end freight forwarding solutions tailored to your business needs. With years of industry experience, a global network of trusted carriers, and a dedicated team of logistics professionals, we ensure your shipments are handled with efficiency, transparency, and care. From customs clearance and documentation to multimodal transport and value-added services, we make it easier to fulfil your global shipping needs.
Contact Alliance Shipping for quality freight forwarding solutions via Whatsapp or email us at manager.dxb@theallianceshipping.com and experience the difference of working with a trusted logistics partner.
