Australia is a vast land with a sparse population. Most of what we purchase comes by sea first and goods have to travel long distances to reach our customers. This is why logistics companies play a significant role in every business that involves the creation, sale or importation of a physical product in Australia.
The term “logistics company” is a broad one. Some run trucks. Some run warehouses. A number of book containers on a ship. Some do all three. Choosing the wrong type costs you the services you don’t need and you lose out on the ones you do.
This guide outlines what logistics companies do, the major types you’re likely to come across in Australia, and how to make a confident decision.
Quick Answer
Logistics firms organize, transport and store products for other companies. Here in Australia they’re categorized into four main groups: freight forwarders, third party logistics (3PL) providers, transport and courier specialists, warehousing and fulfilment specialists, and customs brokers. It will depend on the type of items you ship, where they are going and how much of the process you wish to delegate. In comparing logistics firms, you need to see their licences, their experience with your cargo, how transparent they are about their pricing, and how well they communicate. If your company does import/export, a carrier who has freight forwarder services and in-house customs clearance is typically going to save you time and risk.
Why Logistics Companies Matter in Australia
Logistics is an enormous component of the Australian economy. According to the industry reports, the freight and logistics market is valued at approximately USD 100 billion annually. Transport, postal and warehousing account for approximately 4.5 per cent of national GDP and are responsible for providing jobs for over 700,000 people.
The sector also has a very dispersed distribution. There are over 260,000 businesses in the transport, postal and warehousing division. There’s ample choice, but it also means there’s a lot of variation in quality.
Two things make Australia a tricky market for logistics:
- Distance. Moving goods between Sydney, Perth and Darwin takes real planning. Remote areas add more cost and time.
- Strict border rules. Imports face customs checks and biosecurity controls that few other countries match. Mistakes here are costly.
A good logistics partner knows how to work within both.
What Do Logistics Companies Actually Do?
Logistics firms, at a basic level, take your products from point A to point B. That encompasses a number of occupations in practice.
- Transport. Moving cargo by road, rail, sea or air.
- Warehousing. Storing stock safely until it’s needed.
- Inventory management. Tracking what you have and where it is.
- Order fulfilment. Picking, packing and dispatching customer orders.
- Freight forwarding. Booking space with carriers and managing international shipments.
- Customs clearance. Handling the paperwork and duties needed to bring goods into Australia.
- Distribution. Delivering goods to stores, warehouses or customers.
- Last-mile delivery. Getting parcels to the final address.
Not many logistics firms are able to do all of them effectively. Most specialise. Some provide a broader “one-stop” service, which can be useful for those preferring to have fewer suppliers to deal with.
Types of Logistics Companies in Australia
Knowing the types helps you shortlist the right ones. Here’s a simple breakdown.
| Type | What they do | Best for |
| Freight forwarders | Arrange international sea and air freight, paperwork and tracking | Importers and exporters |
| 3PL providers | Run warehousing, fulfilment and transport on your behalf | Businesses wanting to outsource operations |
| Transport and courier companies | Move goods by road, rail or parcel networks | Domestic deliveries |
| Warehousing and fulfilment specialists | Store stock and ship customer orders | E-commerce and retail |
| Customs brokers | Lodge import and export declarations with the Australian Border Force | Anyone bringing goods into Australia |
| 4PL providers | Manage your whole supply chain, including other logistics companies | Large, complex operations |
Freight Forwarders
A freight forwarder is responsible for handling international cargo. They arrange for space on shipping lines and planes, prepare paperwork and trace shipments. They generally do not own planes or ships. Anyone who imports from China, or exports to Europe, will likely have to work with one.
Third-Party Logistics (3PL) Providers
A 3PL is a third party logistics company who does stuff for you that you would do otherwise. This could involve holding inventory, packing orders and arranging the shipment. Many small manufacturers now choose to outsource this in order to ensure that they do not invest in distribution systems and warehouses.
Transport and Courier Companies
These businesses transport products across Australia. Others specialize in full truckloads. Others operate parcel services for less bulky goods. In long-distance services between large cities, rail operators have a significant role to play.
Warehousing and Fulfilment Specialists
These kinds of providers are dedicated to storage and ordering. They’re very popular with online retailers who want to pick and pack hundreds of orders each day, but do not want to operate their own online store.
Customs Brokers
Customs brokers are licensed by the Australian Border Force. They prepare classification of goods, duty and GST calculations and import declaration. Only a licensed broker is authorized to make declarations for others.
4PL Providers
A 4PL is a third party logistics company that serves as a supply chain manager. They arrange other logistics companies for you. This model is ideal for large companies who have more complex needs, but isn’t for most small and mid-sized importers.
Large Players and Specialist Operators
Australia’s logistics industry has a number of big players. The most popular ones are Linfox, Toll Group, Qube, Aurizon and DHL Supply Chain, each focusing on a different aspect. A number of them have strong skills in road transport. A few of the logistics of rail or port. Others specialize in contract warehousing.
To their sides, there are hundreds of expert operators. These smaller logistics firms tend to specialize in a particular trade lane, cargo type or service. A specialist will provide more personalized service and a faster reply for many small and medium sized businesses as compared to a very large provider.
Both are not inherently superior. The best selection relies on your size, cargo, and attention requirements.
How to Choose Between Logistics Companies
Here’s a practical way to compare your options.
1. Start With Your Own Needs
Before you contact anyone, write down:
- What you ship, and how much
- Where it’s coming from and going to
- How often you ship
- Whether you need storage, delivery or customs help
- Your budget and timing
This stops you from being sold services you don’t need. It also makes it easier to compare quotes fairly.
2. Check Licences and Accreditation
Ensure the company (or employee) has a current customs broker licence from the Australian Border Force for customs clearance purposes. For air freight, check for IATA accreditation. If the shipment is hazardous materials or food items, inquire about the necessary permits and training.
A good provider will provide this information without a problem.
3. Look for Relevant Experience
Each different cargo has their own handling. There are rules for each type of machinery, perishables, fashion and electronics. Inquire about the number of similar shipments the company has taken care of, and what routes they have done it on.
4. Compare the Range of Services
In case you desire one touch, you need to settle for a provider that runs the whole gamut. This may be related to sea and air transportation, customs clearance, storage and distribution. A specialist may be more appropriate if you only require one service.
5. Ask for Transparent Pricing
A good quote will itemize each of these costs. The freight charges, documentation fee, customs charge, port fee, and any surcharges that are likely should be seen. Prices that aren’t specific or itemized can be misleading.
6. Test Their Communication
Email and find out. Are they immediately responding? Is it obvious what the answers are? A business’ conduct prior to signing is often its conduct after signing.
7. Check Their Local Presence
Logistics firms from Australia can respond to queries in your time, and handle local ports and authorities directly. If the business is located outside the country, request to know what happens if there are issues here.
8. Look at Their Technology
There should be no need to call the shipper for an update on the shipment. Good providers will provide online tracking, digital documents and clear reporting. Systems are important, but they should enable a competent team, not supplant a team.
Questions to Ask Logistics Companies Before You Sign
A short list of direct questions can save a lot of trouble.
- Do you hold your own customs broker licence, or do you outsource clearance?
- Which trade lanes and cargo types do you handle most often?
- Can you give me an itemised quote?
- What happens if my shipment is delayed or held at the border?
- How will you keep me updated?
- Do you offer warehousing and local delivery as well?
- Can I speak to a current client with similar needs?
- What are your terms if I want to leave?
Clear, confident answers are a good sign. Vague or defensive ones are worth noting.
Red Flags When Comparing Logistics Companies
Some warning signs are easy to spot once you know them.
A price that’s far below everyone else’s. Unusually cheap quotes often leave out costs that appear later.
No clear licensing information. If a company can’t tell you whether it holds a customs broker licence, ask again.
Slow or unclear replies. If it’s hard to get a straight answer now, it will be harder when something goes wrong.
Pressure to sign quickly. A good provider is happy to give you time to compare.
No references. A company with a good record will usually be glad to connect you with existing clients.
Hidden minimums or lock-in terms. Read the contract. Check for minimum volumes, long notice periods and exit fees.
A Simple Example: Two Ways to Handle the Same Import
Suppose you were able to imagine a Brisbane business that imports homewares into the city, one container per month, from Vietnam.
The first is where the business books the freight with the one company, and hires another customs broker and arranges local delivery with another company. Three businesses, Three Invoices, Three places where something could go wrong. A paperwork problem at the port causes the container to be left there for days as the 3 parties wait for someone to take the blame.
The second option is that the business has a single provider that is responsible for booking, the customs clearance and the delivery to the company’s warehouse. A contact is equal to one invoice. If the same document error is reoccurring, the provider corrects the error on the same day as it occurs because the team is aware of all the steps.
What you are selling and what you are taking on the trip is the same. What sets them apart is the extent to which the logistics firm can coordinate the entire process.
What Does It Cost to Use Logistics Companies?
Pricing depends on the service. Here are the main models you’ll come across.
- Per shipment or per container. Common for freight forwarding. You pay a set rate for each booking.
- Per cubic metre or per kilogram. Used for smaller loads that share space with other cargo.
- Per pallet per week. Typical for warehousing and storage.
- Per order or per pick. Used for fulfilment services.
- Per entry. Customs brokers usually charge a fee for each import declaration.
- Monthly or annual contracts. Used when you commit to regular volumes in return for lower rates.
Keep in mind that certain expenses are not incurred at the logistics company. Duty and GST are charged to the government and port charges are charged to port operators. These are not the provider’s fee, they are calculated by your provider and then passed on to you.
Ask for a full breakdown, in order to know what you are getting for your money.
How Technology Is Changing Logistics Companies
The best logistics companies now employ technology to enhance speed and accuracy. Let’s look at the features you should expect from a contemporary provider.
Real-time tracking. You can see where your cargo is without calling anyone.
Digital documentation. Fewer paper forms means fewer errors and faster customs lodgement.
Data and reporting. Clear reports help you spot delays, compare costs and plan ahead.
Automation. Repetitive tasks like data entry and invoicing are handled by software, which frees staff to solve real problems.
Technology is not the solution to having a bad service, but it does enable a good team to work more quickly and effectively.
Matching Logistics Companies to Your Business Size
The best fit may vary due to the size of your operation. Here are some general guidelines.
Start-ups and small businesses. You’re likely to be shipping low quantities and every dollar matters. Look for logistics companies that offer LCL shipping, flexible warehousing and no long lock-in contracts. You should take the time to find a provider who will explain you how it works, rather than a provider with the lowest rate.
Growing mid-sized businesses.More volumes are being produced and errors are more expensive. The moment that a single provider who has the freight, customs and delivery is starting to pay off. The less handovers you have, the less delays you have and the more volume you will have, the better your bargaining power will be on rates.
Large businesses. It might be necessary to use contract logistics, a dedicated warehouse or a 4PL manager. Scale and technology integration are more important here. You’ll most likely be in the process of a formal tender, and you’ll be comparing a number of providers against each other.
No matter how large or small, check the arrangement annually. The market is always changing to meet your needs. A provider that suited you at one container a month may not suit you at ten.
Frequently Asked Questions
What do logistics companies do?
Logistics companies organise, transport and store products for different companies. They can provide transportation, storage, order fulfillment, international freight forwarding and customs clearance services.
What are the main types of logistics companies in Australia?
These are typically freight forwarders, third-party logistics (3PL) providers, transport and courier businesses, warehousing and fulfilment firms, and customs brokers. Certain firms offer a bundle of these services.
How do I choose between logistics companies in Australia?
Start by working out what you ship, where it’s going and what services you need. Next, compare licences, experience, pricing transparency, communication and local presence. Request quotes that list components and discuss with previous customers when possible.
What is the difference between a freight forwarder and a logistics company?
Freight forwarders are a type of logistics company. It specialises in arranging international transport. A larger logistics firm can also provide warehousing, delivery and other services.
Do logistics companies handle customs clearance?
Some do. A company that wishes to make import declarations, or have a licensed nominee company, must either be a customs broker licenced by the Australian Border Force (ABF) or have a licensed customs broker (nominee) working for them. Please check before booking.
How much do logistics companies charge?
The fees are dependent on the services provided. Freight is sometimes paid on a per container or per cubic metre basis. Typically, a warehouse will charge a fee per pallet. Usually customs brokers charge a fee for each entry. Request an itemised estimate to see every price.
Is it better to use one logistics company or several?
A provider that can do from start to finish will typically minimize handoff coordination and risk delays. Various experts can be useful as well, as long as they are able to communicate with each other.
The Bottom Line: Choosing Between Logistics Companies in Australia
There is no single best option that is available when it comes to logistics companies in Australia. The right one is the provider that fits your load, your travel itineraries & your requirements for service. Ask for details on licensing, ask specific questions, compare detailed estimates and listen to their approach. If you do, you will find a partner which will make your supply chain simpler, not more workload-heavy.
Think Global Logistics has supported Australian importers and exporters since 2014. Our team offers sea freight, air freight, warehousing, domestic transport and in-house licensed customs clearance from our Sydney head office. Get in touch with our team to talk through your needs, or request a quote today.
