3PL (Third-Party Logistics provider)

A 3PL is a company providing outsourced logistics services that may include freight brokerage, warehousing, fulfillment, transportation management, and other supply chain functions.

Freight brokers are a subset of 3PLs. Larger 3PLs combine brokerage with asset-based transportation, warehousing, and technology platforms. The terms 'broker' and '3PL' are often used interchangeably though they refer to different scopes of service.

From a regulatory standpoint, the broker activity within a 3PL requires the same FMCSA operating authority, surety bond, and process-agent designation as a standalone broker.

Why this matters for freight brokers

Whether a company calls itself a broker or a 3PL, the same FMCSA requirements and the same post-Montgomery negligent-hiring exposure apply.

Related terms

• Freight broker — A freight broker is a licensed intermediary that arranges the transportation of freight between shippers and motor carriers without taking possession of the cargo or operating the equipment.
• Motor carrier — A motor carrier is a company that operates commercial motor vehicles transporting freight or passengers, holding FMCSA operating authority and meeting federal safety, insurance, and registration requirements.
• Shipper — A shipper is the party that owns the freight and tenders it to a freight broker or motor carrier for transportation.