3PL vs Freight Forwarder: What's the Difference for Australian Importers

A Sydney importer may use a freight forwarder to move a container from an overseas supplier into Australia, then use a 3PL to store the stock and fulfil customer orders after arrival.

The freight forwarder manages the sea freight, so choosing a 3PL or freight forwarder depends on which task the importer needs to do next. This article explains what each service does, and when an importer needs one or both services.

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3PL vs Freight Forwarder: Quick Summary for Importers

• A freight forwarder coordinates transport, routing and often customs-related services, while a 3PL focuses on warehousing, inventory handling and order fulfilment
• Imported stock is stored in a 3PL warehouse. A freight forwarder normally coordinates shipments without holding the importer’s inventory.
• Freight forwarders charge per shipment or container. 3PLs charge ongoing storage fees, pick and pack, and technology.
• A freight forwarder’s job covers the leg from the overseas supplier to Australia. A 3PL’s job starts once the stock arrives at the warehouse.

Couriers & Freight provides 3PL and fulfilment services for importers needing ongoing storage and order fulfilment.

What Actually Separates a 3PL from a Freight Forwarder

A freight forwarder coordinates the transport of goods from an overseas supplier to Australia. A 3PL manages those goods after arrival, including storage, order fulfilment and distribution. 

The biggest practical difference is what happens to the stock after it reaches Australia. A freight forwarder coordinates the incoming shipment and customs clearance. A 3PL takes physical custody of the inventory for storage and fulfilment. 

What a Freight Forwarder Does

A freight forwarder coordinates an importer’s shipment from the overseas supplier to an Australian port or airport. For example, a sporting goods retailer in Perth ordering stock from a factory in Shenzhen, China, needs a freight forwarder to ship their items to Fremantle. 

The forwarder books the ocean freight and arranges the customs documentation the importer needs. Until the container reaches Australia, the retailer has no stock to sell, so choosing a freight forwarder is the first decision.

What a 3PL Does

A 3PL receives and stores imported inventory after it reaches Australia. When the Perth retailer’s container has already landed at Fremantle, the stock needs a warehouse and someone to send it to customers. 

The 3PL unloads the container, stores the stock, picks and packs each order as it comes in, and manages returns. The retailer’s next decision is which 3PL provider does that.

Do Importers Need Both a Freight Forwarder and a 3PL?

The retailer may need both services at different stages of the shipment. The handoff can occur after customs clearance, after port collection or after inland delivery, depending on how the freight and warehousing services are arranged.

1. The freight forwarder arranges international transport from the overseas factory to an Australian port and clears the container through customs.
2. The 3PL receives the bulk stock into its warehouse and stores the inventory until customer orders need to be fulfilled.
3. The 3PL picks and packs it into individual orders and ships them to the retailer’s customers across Australia 

An importer may use both services at different stages rather than treating them as competing options. Businesses weighing the transport leg can compare the cost of using a freight forwarder. Those planning local fulfilment can compare 3PL providers in Australia. 

Store Imported Goods with Couriers & Freight's 3PL Service

A Brisbane homewares importer has a container landed at the Port of Brisbane and needs the stock warehoused and shipped out to individual customers.

Couriers & Freight provides 3PL and fulfilment services for this stage of the supply chain. The service covers storage, order picking and packing, and distribution to the importer’s customers. 

Get a 3PL quote from Couriers & Freight.

Book 3PL and Fulfilment Services

Store stock in a warehouse and have each customer order picked, packed and shipped.

Get a Quote Now

Frequently Asked Questions About 3PLs and Freight Forwarders

Is Australia Post a freight forwarder?

Generally, no. Australia Post is primarily a postal and parcel carrier, whereas freight forwarders coordinate broader international freight movements such as air cargo, sea freight and associated logistics.

Who are the top 3PL providers in Australia?

Providers differ on warehouse location, the order volumes they accept and the systems they connect to, so the best fit depends on the importer’s stock and order volume. The guide on how to choose a 3PL in Australia sets out what to ask before signing.

Is it cheaper to use a freight forwarder?

It depends on the stage, because the two services are not a like-for-like comparison. A Perth retailer importing from Shenzhen pays a freight forwarder per container, then pays a 3PL ongoing fees for storage and pick and pack. The cost of using a freight forwarder compared with direct shipping is covered in a separate guide.