Guide · June 22, 2026

What is a 3PL? Third-party logistics explained

Outsource the trucks, the warehouse and the headaches — keep the product and the customers. That's a 3PL in one line. Here's the longer version worth knowing before you sign one.

3PL, defined

A 3PL — third-party logistics provider — is a company you hire to handle parts of your supply chain you don't want to run yourself: transportation, warehousing, fulfillment, or all of it. Instead of buying trucks, leasing a warehouse and hiring a logistics team, you outsource those functions to a partner who already has them. The "third party" is the logistics provider sitting between you (the shipper) and your customer.

What a 3PL actually does

The term covers a wide range, but a full-service 3PL for importers typically handles:

Asset-based 3PL vs. broker (the difference that matters)

This is the distinction to get right before you sign anyone. An asset-based 3PL owns the trucks, chassis and warehouse — when you call, they move your freight with their own equipment and people. A non-asset 3PL or broker owns no equipment; they arrange your freight with other carriers and mark it up. Brokers have their place, but for time-critical port work the asset-based model means one accountable team and no finger-pointing when a container's Last Free Day is tomorrow. We're asset-based: our drivers, our chassis, our warehouse in Kent.

When a 3PL pays off

Outsourcing to a 3PL makes sense when logistics isn't your core business, when volume is seasonal and you don't want fixed overhead, or when you're importing and need someone who can handle the whole chain from the terminal to the doorstep. The biggest wins come from consolidation — when drayage, the warehouse and outbound delivery sit with one provider, you get one invoice, one point of contact, and no cost leaking in the handoffs between separate vendors.

3PL FAQ

What does 3PL stand for?

Third-Party Logistics. It's a provider you outsource supply-chain functions to — transportation, warehousing, fulfillment, or all of them.

What is the difference between a 3PL and a freight broker?

An asset-based 3PL owns the trucks, chassis and warehouse and moves your freight directly; a broker owns no equipment and arranges your freight through other carriers for a margin. For port-anchored, deadline-driven work, the asset-based 3PL gives you one accountable team.

What services does a 3PL provide?

Commonly drayage, transloading, warehousing, fulfillment and final-mile delivery — sometimes all under one roof, sometimes a single function.

When should I use a 3PL?

When logistics isn't your core competency, when you want to avoid fixed warehouse and fleet overhead, or when you're importing and need the full port-to-door chain handled by one provider.

See what our 3PL can run for you →