Third-Party Logistics (3PL)
What is third-party logistics (3pl)? A 3PL is a company that arranges and manages freight transportation on behalf of shippers without owning trucks themselves — brokers and freight forwarders are both 3PLs.
Full definition
3PLs sit between shippers and carriers. They handle freight sourcing, rate negotiation, tracking, and payment — sometimes with TMS technology layered in.
Major 3PLs (C.H. Robinson, XPO, Echo Global, Coyote) post tens of thousands of loads daily on load boards and direct broker portals. For owner-operators and small fleets, 3PLs are the primary source of available freight.
Finance products evolve around 3PL payment cycles: invoice factoring, working capital, and lender underwriting all account for how 3PLs pay (typically 30-60 days).