What’s the Difference Between a Courier and a Freight Forwarder?

If you’re planning to send goods nationally or internationally, you might be wondering what the best shipping option is for you. Knowing what you’re sending, your shipping budget and your timeframe will help determine whether a courier or a freight forwarding company will work best for you. 

Couriers vs Freight Forwarders: At a Glance

AspectCourierFreight Forwarder
Service ScopeLocal, national, and internationalMostly international
Typical Shipment SizeSmall parcels, documentsLarge shipments, bulk goods
SpeedFast, often same-day or next-dayVariable, depends on shipment size, type of transport and distance
CostHigher per item for small shipmentsMore cost-effective for large shipments
ComplexitySimple, direct deliveryComplex, involves multiple transport modes
Customs HandlingBasic assistanceFull customs and regulatory services
TrackingReal-time trackingDetailed tracking, often more complex

What does a courier do?

Couriers operate on a local, national, and international level and are ideal for quick and reliable delivery of small packages. They focus on fast turnaround times, making them perfect for urgent deliveries like important papers, medical supplies, or small online orders. These services usually handle smaller parcels, with weight and size limits, to guarantee speedy delivery. Well-known courier companies include DHL, FedEx, and UPS.

Advantages and Disadvantages of Using a Courier

Pros

  • Couriers are ideal for fast deliveries, often offering same-day or next-day service. This speed makes them perfect for urgent deliveries, such as important documents or time-sensitive packages.
  • The convenience of door-to-door service means your package is picked up from your location and delivered directly to the recipient, saving you time and effort. This service is particularly useful for businesses and individuals who need a reliable and straightforward delivery solution.
  • Real-time tracking allows you to monitor your package every step of the way. This feature provides peace of mind, knowing exactly where your shipment is at any given time and when it will reach its destination.

Cons

  • Couriers can be more expensive than other shipping options, especially for larger or bulkier items. This higher cost may not be justified for non-urgent or large-volume shipments.
  • Couriers usually have weight and size limits, making them less suitable for large or heavy shipments. 
  • While couriers operate internationally, their network is generally more suited to smaller, quicker deliveries. 

What does a freight forwarder do?

Freight forwarders arrange the transportation of large and bulk shipments, often across international borders. Unlike couriers, they do not usually handle the physical movement of goods themselves. Instead, they coordinate with various carriers to manage the complex process of shipping.

At SLG Logistics, we manage your entire freight forwarding process from start to finish. For example, if you’re exporting from the UK to Vietnam, you’d begin by providing us with the details of your goods and the delivery location. We’ll then take care of preparing all necessary documentation to ensure smooth transit. Once ready, we will collect your goods and initiate the shipping process, handling all UK Customs requirements on your behalf. As your shipment progresses, we will manage import customs at the destination, ensuring compliance with local regulations. Finally, we will complete the process with efficient last-mile delivery, guaranteeing your goods arrive safely and on time. 

Advantages and Disadvantages of Using a Freight Forwarder

Pros

  • Freight forwarders offer thorough services that cover everything from shipping coordination to customs clearance and warehousing. This all-in-one service approach simplifies the logistics process for businesses.
  • They can manage complex logistics involving multiple modes of transport. Freight forwarders’ expertise in navigating international shipping regulations and customs procedures ensures smooth and compliant shipping operations.
  • Freight forwarders are cost-effective for large shipments, making them a more economical choice for transporting large quantities and bulk goods. Their overview of the shipment gives them the ability to find the most efficient and cost-effective routes for your shipments. 

Cons

  • Depending on the size and distance of the shipment, shipping times with freight forwarders can be longer than those with courier services. This may not be ideal for time-sensitive deliveries.
  • Tracking will cover larger steps, i.e. that your shipment has arrived at the port, or is in transit. Whereas some courier services allow you to have real-time tracking to see precisely where the package is.

How do freight forwarding services and courier services differ?

Cost Effectiveness

Courier services tend to be more expensive per unit for small shipments, especially for express delivery options. They are ideal for lightweight and time-sensitive parcels and typically charge based on weight and size, with flat rates for standard services.

Whereas, freight forwarders are more cost-effective for large shipments due to economies of scale. The cost per unit decreases as the shipment size increases. Freight forwarders offer variable pricing based on factors such as volume, weight, distance, and transport mode, providing cost-saving options through freight consolidation. 

Depending on the size of your shipment, you might want to explore whether you need a full container load (FCL) or a less than container load (LCL). Knowing the differences between FCL and LCL shipping will make sure you get the right shipping option for you. If your products are transported loose in bulk, like grains, liquids or minerals, you should consider bulk shipping which is more suited to these types of goods.

Bill of Lading

Couriers generally use a simple waybill for international deliveries. This straightforward document is used for point-to-point shipments and includes basic information about the sender, recipient, and package details. Often the details for the waybill are filled out by the sender, which means you need to be involved in the paperwork before shipping starts. Once the waybill has been filled out, it cannot be changed whilst the goods are in transit.

A waybill provides evidence of the shipping contract, but it does not convey ownership, which can be problematic as banks do not accept this in the payment process. Waybills should only be used when you have a trusted relationship with the receiver, as once the goods are despatched and the carrier has received freight payment, you lose the right to control the release of the goods.

Freight forwarders handle issuing a Bill of Lading (BOL), which is a more detailed legal document that serves as both a contract and a receipt for the cargo. This complex document covers multiple carriers and transport modes, providing detailed information about the shipment, route, and handling instructions. It establishes a common understanding of the terms and conditions for all parties involved and also proves ownership of the goods. BOLs are usually negotiable, which means they can be bought, sold, or traded whilst the goods are in transit.

Customs Clearance

Couriers tend to only provide basic help with customs clearance, mainly for smaller parcels and documents. They are generally not equipped to handle complex customs rules and paperwork.

Freight forwarders provide more thorough customs clearance brokerage services. They take care of all the required documents and make sure everything complies with international trade laws. Their expertise in customs procedures helps goods move smoothly and legally across borders.

Choosing the Right Shipping Method for You

Selecting the appropriate shipping method depends on your specific needs and circumstances.

ScenarioBest OptionReason
Urgent document deliveryCourierCouriers offer same-day or next-day delivery, ideal for time-sensitive documents.
Small online orderCourierFast turnaround and convenient door-to-door service for small packages.
Large bulk shipmentFreight forwarderBreakbulk shipping is cost-effective for large quantities 
International shipping of heavy goodsFreight forwarderExpertise in handling complex international shipping and customs clearance, for example, specialist vehicle shipping
Fragile, perishable or dangerous itemsFreight forwarderSpecialised services for handling fragile, perishable or dangerous cargo and providing insurance.
Complex logistics Freight forwarderCapable of coordinating various carriers and transport modes, or organising shipping for oversized or out-of-gauge cargo
Consistent tracking updatesCourierReal-time tracking for precise monitoring of package location.
Long-term storage and distribution needsFreight forwarderOffers warehousing and distribution services to streamline the supply chain.

Choose SLG Logistics for Reliable, Cost Effective Freight Forwarding

At SLG Logistics, our many years of experience and commitment to customer satisfaction set us apart in the freight forwarding industry. We organise and coordinate everything from air and sea freight to land trucking and vessel chartering. This thorough approach allows us to oversee your shipment from start to finish, guaranteeing that your goods are transported efficiently and arrive on time. 

Get a quote today, and trust SLG Logistics to be your reliable partner for all your freight forwarding needs. 

Contact us today to learn about our international freight forwarding services from the UK to Southeast Asia.

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