The main difference is that 3PLs offer a wider range of logistics services and have more control and ownership over the shipping process, while freight brokers mainly focus on securing capacity with carriers.
Use a 3PL if you ship high volumes, need more services beyond brokerage, or want more control. Use a broker for flexible, low-cost shipping of lower volumes or one-off loads.
3PLs generally have higher costs because they invest in assets and provide more services. Brokers offer lower costs but fewer service guarantees or customizations.
3PLs invest heavily in customer service and technology and can provide branded tracking pages, EDI, special handling, and more. Brokers offer simpler self-service options.
With 3PLs, lack of flexibility or loss of control. With brokers, lack of transparency, hidden fees, or low quality of service.
Switching 3PLs can be challenging due to contracts and systems integration. Switching brokers is easier but still involves effort in finding and vetting new options.
Yes, many shippers use a blended approach, working with a 3PL for core operations but using brokers for one-off or specialty loads.
