Freight glossaryFreightWarehousing
Third-Party Logistics (3PL)
Definition
A third-party logistics provider (3PL) is a company that performs transportation, warehousing or other logistics services for a customer, work the customer might otherwise do itself.
What it means
The FHWA glossary describes a 3PL as "a specialist in logistics who may provide a variety of transportation, warehousing, and logistics-related services to buyers or sellers. These tasks were previously performed in-house by the customer."[1]
The label covers very different businesses. Some 3PLs run their own warehouses, docks or trucks; others arrange services performed by someone else. A 3PL that arranges truck transportation for pay is acting as a freight broker and needs broker registration.[2]
Example
An online retailer hands its inbound containers to a 3PL that devans them, stores the pallets and ships orders to customers, so the retailer does not run its own warehouse.
Related
Related terms
- Freight BrokerA freight broker arranges truck transportation for compensation, for shippers or carriers, without being the...Glossary
- Freight ForwarderA freight forwarder arranges the transportation of other people's shipments, often consolidating them; U.S....Glossary
- Distribution CenterA distribution center (DC) is a warehouse that holds inventory and ships it out to stores or customers as...Glossary
- Cross-DockingCross-docking is moving freight from inbound trucks or containers straight onto outbound trucks at a dock...Glossary
Sources
- Federal Highway Administration, Office of Freight Management and Operations, “Freight Glossary,” Government glossary. Accessed September 30, 2026.
- Legal Information Institute, Cornell Law School, “49 U.S. Code § 13901, Requirement for registration,” Federal statute. Accessed September 30, 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.