3pl

3PL v. Freight Broker: What’s the Difference?

In facilitating efficient management of your supply chain, choosing a transportation and logistics partner with right combination of services that fit your company needs is essential. Unfortunately, industry jargon breeds confusion. For example, 3PL (third-party logistics) and freight brokering are often spoken of as if interchangeable. They aren’t.

As our Cleveland 3PL experts can explain, there are some similarities, but also a few key differences. When you’re in the market for a logistics partner, those differences matter.

At On Time Delivery & Warehouse, we want clients to have the information and tools necessary to determine the best solutions for their operations.

What primarily sets 3PL services and freight brokers apart (as well as freight forwarders and motor carriers) is the range of services they provide (including whether they are asset or non-asset services) and the type of primary insurance coverage they carry. Much of this is spelled out by the Federal Motor Carrier Safety Administration (FMCSA), the regulator responsible for ensuring safety and legal compliance of over the road transportation.