Managing freight on your own works until it does not. As your business grows, so does the complexity of your supply chain. More shipments, more carriers, more variables, and less time to manage all of it. That is where a third-party logistics provider comes in. This guide covers everything you need to know about 3PL logistics: what it is, how it works, what services are included, and how to know if it is the right move for your business.
What Is a 3PL?
A 3PL, or third-party logistics provider, is a company that manages freight and supply chain functions on behalf of another business. Instead of handling carrier relationships, shipment tracking, and logistics coordination internally, you outsource those functions to a specialized partner.
3PL providers typically offer a range of services including freight brokerage, transportation management, warehousing, customs brokerage, and supply chain consulting. The scope of what a 3PL handles depends on your business needs and the provider you work with.
ATS Logistics has been operating as a full-service 3PL since 1980, coordinating freight across the United States, Canada, Mexico, and internationally for businesses of all sizes.
How Does 3PL Logistics Work?
A 3PL acts as the operational layer between your business and the carriers, warehouses, and logistics networks that move your freight. Here is how that relationship works in practice.
You Define Your Freight Needs
You share the details of your shipment: what you are moving, where it needs to go, when it needs to arrive, and any special handling requirements. Your 3PL takes it from there.
Your 3PL Sources and Vets Carriers
Rather than calling carriers directly or relying on a single provider, a 3PL taps into a broad carrier network to find the right equipment and capacity for your load. Reputable 3PLs vet carriers for safety ratings, insurance coverage, and performance history before assigning them freight.
Your Shipment Moves With Full Visibility
Once your freight is booked and in transit, your 3PL monitors it. Real-time tracking, proactive communication, and fast problem resolution are what separate a strong 3PL from a basic freight broker. At ATS Logistics, our team tracks every shipment and keeps you informed at every stage.
You Get a Single Point of Contact
Instead of managing relationships with dozens of carriers, you work with one logistics partner who coordinates everything. That saves time, reduces friction, and gives you a single point of accountability when something needs attention.
What Services Does a 3PL Provide?
Not all 3PLs offer the same scope of services. A full-service provider handles multiple modes and can adapt as your shipping needs change.
Full Truckload Freight (FTL)
FTL shipping is the most efficient option for large shipments that fill or nearly fill a trailer. A dedicated truck moves your freight directly from origin to destination with no stops, no shared space, and minimal handling. FTL is the go-to choice for high-volume shippers, time-sensitive loads, and freight that cannot afford damage from multiple handling events.
Less Than Truckload Freight (LTL)
LTL freight is the right move when your shipment does not require a full trailer. You pay only for the space your freight occupies, and your cargo travels alongside other shippers’ freight headed in the same direction. ATS Logistics provides LTL and partial truckload solutions across the U.S., Canada, and Mexico through an extensive network of regional and national carriers.
Expedited Freight
When a standard transit window is not an option, expedited shipping moves your freight to the front of the line. Expedited services use direct routing, team drivers, and priority handling to compress transit time as much as possible. This is critical for production line emergencies, last-minute inventory needs, and any shipment where delay has a direct business cost.
Drayage
Drayage handles the short-distance movement of freight containers from ports to warehouses, distribution centers, or intermodal facilities. If your business imports goods or relies on container shipping, drayage is the link between the port and the rest of your supply chain. ATS Logistics works with a national carrier base to move containers from ports on both coasts.
International Shipping
Moving freight across borders adds a layer of complexity that catches many businesses off guard. Customs documentation, Incoterms, compliance requirements, and carrier coordination across countries all have to work together. ATS Logistics has an in-house customs broker and offers international shipping services that handle the complexity so your freight clears borders without unnecessary delays.
Warehousing
For businesses that need temporary or ongoing storage capacity, a 3PL can source and manage warehousing solutions. ATS Logistics helps clients find warehousing capacity that fits their volume, location, and timeline requirements. Request warehousing support through our team directly.
What Are the Benefits of Using a 3PL?
The decision to partner with a 3PL comes down to one question: is logistics a core function of your business, or is it a function that supports your core business?
For most companies, the answer is the latter. Here is what a strong 3PL partnership delivers.
Access to a larger carrier network. A 3PL maintains relationships with hundreds or thousands of vetted carriers. That means more capacity options, better rates on competitive lanes, and less exposure when a single carrier cannot cover your load.
Reduced operational overhead. Building an in-house logistics team, managing carrier contracts, and investing in transportation management technology is expensive. A 3PL gives you access to all of that without the overhead.
Scalability. Your freight volume fluctuates. A 3PL scales with you. Whether you are moving five loads a month or five hundred, your logistics partner adjusts without requiring you to hire, train, or restructure internally.
Risk management and cargo protection. A reputable 3PL carries cargo insurance that goes beyond what standard contingent policies cover. ATS Logistics provides primary cargo coverage up to $500,000 per truckload, protecting your freight from loss, theft, temperature failure, and other risks that most brokers leave uncovered.
Proactive problem solving. Freight does not always go as planned. Weather, equipment failures, and capacity crunches happen. A strong 3PL identifies issues before they become crises and develops solutions quickly. That responsiveness is the difference between a minor disruption and a missed deadline.
3PL vs. Freight Broker: What Is the Difference?
These terms are often used interchangeably, but they are not the same thing.
A freight broker arranges transportation between shippers and carriers. That is the core function. A 3PL does that and more. A full-service 3PL manages a broader scope of your supply chain, potentially including warehousing, inventory management, customs brokerage, and multi-modal coordination.
ATS Logistics operates as both. We arrange freight across all modes while also providing customs brokerage, warehousing support, and end-to-end supply chain coordination. For businesses that want a single partner to manage multiple logistics functions, that range of capability matters.
When Does a 3PL Make Sense for Your Business?
Not every business needs a 3PL from day one. But there are clear signals that it is time to consider one. Your freight volume is growing and internal coordination is becoming harder to manage. You are spending time on carrier calls, tracking issues, and shipment problems that pull you away from running your business.
You are shipping in multiple modes and the complexity of coordinating FTL, LTL, and expedited freight across different carriers is creating gaps. A single 3PL partner can consolidate that.
You have had damage, delays, or carrier reliability issues and do not have the leverage to resolve them on your own. A 3PL with a large carrier network has that leverage. You are expanding into new markets, new lanes, or international shipping and do not have the infrastructure or expertise to manage that internally. That is exactly the scenario where a 3PL partner creates immediate value.
How to Choose the Right 3PL Partner
Not all 3PLs are equal. Here is what to evaluate before committing to a partner.
Carrier network size and vetting standards. Ask how many carriers they work with and how they qualify them. Safety ratings, insurance verification, and performance monitoring should be non-negotiable.
Technology and visibility. Real-time tracking and proactive communication are baseline expectations. If a 3PL cannot tell you where your freight is at any given moment, that is a problem.
Cargo insurance. Ask specifically about their cargo coverage. Many brokers carry only contingent policies, which leave you exposed if the carrier’s insurance does not pay out. ATS Logistics carries primary cargo insurance up to $500,000 per truckload.
Industry experience. How long have they been operating? Do they have experience with your commodity, your lanes, and your specific freight requirements? ATS Logistics has been in business since 1980 with deep experience across domestic and international freight.
Responsiveness. Call them before you hire them. How quickly do they respond? Is there a real person available when you need one? Logistics problems do not wait for business hours.
Frequently Asked Questions About 3PL Logistics
What does 3PL stand for?
3PL stands for third-party logistics. It refers to a company that manages freight and supply chain functions on behalf of another business, acting as the operational layer between the shipper and the carriers, warehouses, and networks that move the freight.
What is the difference between a 3PL and a freight broker?
A freight broker arranges transportation between shippers and carriers. A 3PL does that and more, often managing warehousing, customs brokerage, multi-modal coordination, and broader supply chain functions. Not all freight brokers are 3PLs, but most 3PLs provide freight brokerage as part of their services.
What types of businesses use 3PL providers?
Businesses of all sizes and industries use 3PLs. Manufacturers, retailers, e-commerce companies, distributors, and importers all benefit from outsourcing freight coordination to a specialized partner. Any business that ships freight regularly and wants to reduce the time, cost, and complexity of managing it internally is a candidate for 3PL services.
How do I know if my business is ready for a 3PL?
If your freight volume is growing, your internal logistics coordination is becoming difficult to manage, or you are dealing with recurring carrier reliability issues, it is likely time to evaluate a 3PL. The right partner reduces operational friction and gives you back time to focus on your core business.
In Summary
A 3PL is not just a freight vendor. It is a logistics partner that takes on the complexity of your supply chain so you can focus on running your business. The right 3PL brings carrier network depth, technology, cargo protection, and operational expertise that most businesses cannot replicate internally, at a cost that makes sense at every stage of growth.
ATS Logistics has been that partner for businesses across North America since 1980. From FTL and LTL to expedited freight, drayage, and international shipping, we coordinate freight of all shapes and sizes with one goal: getting your freight where it needs to go, on time, every time.
Ready to talk about what a 3PL partnership looks like for your business? Contact our team or call (800) 878-4849.