Differences Between Shipping Services and Freight Forwarding

In the world of logistics, the terms shipping services and freight forwarder services are often used interchangeably, but they have significant differences in the services they offer. Understanding these differences is essential to help you choose the right service for your business or personal needs.  

Shipping Services 

Shipping services refer to activities involving the transportation of goods from one location to another, regardless of size, with rates determined based on weight, volume, and shipping distance. 

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According to Article 86 of the Commercial Code (“KUHD”), shipping services are referred to as expeditors, defined as individuals responsible for organizing the transportation of merchandise and other goods by land or water.

Shipping services are closely linked to logistics, offering a range of services such as pickup, packaging, delivery, and transportation to the final destination. Examples of shipping companies include JNE, TIKI, Lion Parcel, Sicepat, Lalamove, and others.

Shipping services are often associated with logistics because they encompass various stages, including: 

• Pickup of goods
• Packaging
• Transportation
• Delivery to the destination address 

The benefits of using shipping services include cost savings, package tracking, significant support for online business owners, time efficiency, simplified administration, and security through insurance to protect goods from damage.   

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Freight Forwarder 

A freight forwarder acts as an intermediary between the sender and receiver of goods (whether businesses or individuals). They handle the logistics of moving goods efficiently, often across international borders.

According to Article 1, point 6 of the Minister of Transportation Regulation No. PM.59 of 2021 on the Administration of Business Services Related to Water Transportation ("Permenhub 59/2021"), freight forwarding services refer to business activities aimed at facilitating all necessary operations for the shipment and receipt of goods through land, rail, sea, and/or air transportation. 

Main Services Offered by Freight Forwarders:

1. Transportation Planning: Organizing and coordinating the best routes, modes, and schedules (air, sea, road, rail).
2. Customs Clearance: Managing documentation and ensuring compliance with import/export regulations.
3. Warehousing and Storage: Providing temporary storage solutions for goods.
4. Cargo Insurance: Arranging insurance to protect goods during transit.
5. Documentation: Handling necessary documents such as bills of lading (B/L), invoices, packing lists, and certificates of origin.
6. Consolidation Services: Combining smaller shipments into one container to reduce client costs.
7. Tracking and Updates: Offering real-time updates on the status and location of shipments.
8. Receiving: Managing goods storage in covered warehouses or open storage areas (stacking yards).
9. Storage management 
10. Sorting
11. Packing
12. Labeling
13. Measuring
14. Weighing
15. Carrier Booking
16. Delivery
17. Distribution management
18. Cost Calculation
19. Claims Handling
20. Billing Management
21. Information and Communication Systems
22. Logistics Services: Offering national and international logistics services, both conventional and electronic.
23. E-Commerce Integration: Utilizing satellite-based internet technology for real-time tracking of goods.
24. Contractual Carriers or Non-Vessel Operator Common Carrier (NVOCC): Managing goods transportation without owning vessels.
25. Special Goods Handling: Shipping and/or receiving specific items in compliance with applicable laws and regulations. 
 

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Benefits of Using Freight Forwarding Services

• Expertise: In-depth understanding of complex international shipping regulations, customs procedures, and logistics.
• Cost Efficiency: They often negotiate better rates with carriers due to high shipment volumes.
• Time Savings: Simplifies processes, reducing delays and complications.
• Risk Mitigation: Their experience minimizes the likelihood of errors or mishandling.

Additionally, compliance with international regulations ensures smooth and legally integrated global logistics operations.

Hyper Mega Shipping is committed to delivering the best services, embracing the theme “Empowering Global Trade Connectivity” in 2025. We continuously strive to build and optimize a robust logistics and transportation network, not only facilitating the flow of goods but also supporting both national and global economic growth.

Sources: Various sources & hukumonline.com