What is the difference between freight forwarding and shipping?

1, Definition and Business Scope
Freight forwarding: Freight forwarding refers to a unit or individual that accepts customer commissions and acts as an agent for domestic or international freight transportation services. As a bridge between shippers and carriers, they are responsible for providing comprehensive logistics services to shippers, including goods receiving, loading, transportation, customs declaration, inspection, insurance, signing and a series of other links. The business scope of freight forwarding is extensive, not limited to a specific mode of transportation, but flexibly selects the most suitable transportation plan according to customer needs.
Shipping: Shipping refers to the process of transporting goods from one port to another through waterway transportation. Shipping companies typically own and operate vessels, responsible for loading goods onto ships from the port of origin, transporting them by sea to the destination port, and then having the carrier at the destination port unload and deliver them to the consignee. The business scope of shipping companies mainly focuses on maritime transportation, which has the characteristics of long transportation distance, large transportation volume, and relatively low cost.
2, Operation mode and legal status
Operation mode: The operation mode of freight forwarders is relatively flexible. They do not directly own transportation vehicles, but provide agency services to shippers by integrating market resources. Freight forwarders will select suitable carriers and transportation methods based on customer needs, and coordinate relationships among all parties to ensure smooth transportation of goods. Shipping companies adopt a heavy asset operation model, owning and operating ships, responsible for specific tasks such as ship scheduling, navigation, and maintenance. The operating mode of shipping companies is relatively fixed, mainly focusing on maritime transportation.
Legal status: In legal terms, freight forwarders are usually regarded as intermediary organizations, and their legal status is similar to that of freight forwarders or freight brokers. They sign agency contracts and transportation contracts with shippers and carriers respectively, assuming the responsibilities and risks stipulated in the agency contracts. As carriers, shipping companies directly sign transportation contracts with shippers and assume all responsibilities and risks during the transportation process.
3, Market impact and competitive advantage
Market impact: Freight forwarders play an important role in the logistics market. By providing comprehensive logistics services, they reduce the logistics costs of shippers and improve logistics efficiency. At the same time, freight forwarders have also facilitated the connection and coordination between different modes of transportation, promoting the development of multimodal transport. Shipping companies play a crucial role in international trade by transporting goods by sea to various parts of the world, promoting global economic exchange and cooperation. The fluctuations in the shipping market have significant impacts on international trade and the global economy.
Competitive advantage: The competitive advantage of freight forwarders mainly lies in their professionalism and flexibility. They are able to provide personalized logistics solutions based on customer needs and reduce logistics costs by integrating market resources. In addition, freight forwarders have rich market experience and professional knowledge, which can provide customers with high-quality logistics services. The competitive advantage of shipping companies mainly lies in their transportation capacity and economies of scale. They have achieved a reduction in transportation costs and an improvement in transportation efficiency by owning and operating large vessels. At the same time, shipping companies have also enhanced their market competitiveness by continuously expanding their route networks and improving service quality.