SFTP
SFTP (SSH File Transfer Protocol) is a secure protocol for transferring files between computer systems over an encrypted SSH connection. It provides confidentiality and integrity for the files in transit, and is a long-established, reliable way to move data files and batches between organisations — a secure replacement for the old, unencrypted FTP.
In logistics and trade, SFTP is one of the most common mechanisms for exchanging EDI files and data batches between trading partners and systems: a partner drops files (orders, invoices, manifests, tracking updates, rate files) onto an SFTP server, and the other system collects and processes them on a schedule. Compared with real-time APIs and webhooks, SFTP is a batch, file-based approach — simple, robust and widely supported, well-suited to bulk and scheduled data exchange, though not real-time. It is frequently used alongside AS2 and APIs in the mix of integration methods connecting shippers, carriers, forwarders and customers. Understanding SFTP is useful when setting up file-based data exchange with partners. It remains a workhorse of B2B and logistics data integration.
A lot of logistics data still moves as scheduled files — orders, manifests, rate sheets, tracking batches — and SFTP is the secure, robust, universally supported way to move them between partners. It is the file-based counterpart to real-time APIs, and remains a workhorse of EDI and B2B integration, so it is essential to know when setting up partner data exchange.
How does SFTP differ from an API?
SFTP is a batch, file-based transfer (partners exchange files on a schedule); an API offers real-time, on-demand data exchange.
Why use SFTP instead of FTP?
SFTP encrypts the connection over SSH, protecting files in transit, whereas plain FTP is unencrypted and insecure.