Freight Forwarder Vs 3pl: What is the Difference?

When it comes to shipping and logistics, there are a few different options available to business owners. Two of the most common are freight forwarders and 3pls (third-party logistics). While both offer similar services, there are some key differences between them. In this post, we'll take a look at what those differences are, so you can decide which option is right for your business.

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What is a Freight Forwarder?

A freight forwarder is a company that provides logistics services for the transportation of goods. Freight forwarders typically coordinate the movement of goods, arrange for the necessary transportation, and provide other support services such as customs clearance and insurance. 

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There are several benefits to using a freight forwarder, including: 

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- Access to a worldwide network of carriers

- Negotiated rates with carriers

- Experience in handling the logistics of shipping goods

- Ability to track shipments and provide updates to the customer

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What is a 3PL?

A 3PL (third-party logistics) provider is a company that provides outsourced logistics services. 3PL providers typically offer a wide range of services, including transportation, warehousing, and freight management. 

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There are several benefits to using a 3PL provider, including: 

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- Reduced shipping costs

- Increased efficiency in shipping operations

- Access to a network of carriers

- Ability to customize logistics solutions

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When Should You Use A Freight Forwarder? 

If you are shipping goods internationally, or if you are shipping large or heavy items, you will likely need to use a freight forwarder. Freight forwarders have the experience and expertise to handle the logistics of shipping goods, and they can provide you with access to a worldwide network of carriers. 

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Related: Freight Broker Vs. Freight Forwarder: What's The Difference?

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When Should You Use A 3PL? 

If you are looking for a comprehensive outsourced logistics solution, or if you want to reduce your shipping costs, you should use a 3PL provider. 3PL providers can offer you a wide range of services, including transportation, warehousing, and freight management. They can also help you increase the efficiency of your shipping operations. 

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There are a few things to keep in mind when choosing between a freight forwarder and a 3PL. 

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The Size and Scope of Your Shipping Needs

First, consider the size and scope of your shipping needs. If you only ship domestically, a 3PL may be a better option. However, if you ship internationally or have large or heavy shipments, you will need to use a freight forwarder. 

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The Level of Service You Require

Second, consider the level of service you need. Freight forwarders generally provide a higher level of service than 3PLs. This is because freight forwarding is a more complex process than domestic shipping, and freight forwarders have the experience and expertise to handle the logistics of international shipping. 

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The Cost of Shipping

Third, consider the cost of shipping. Freight forwarders generally charge higher rates than 3PLs. However, this is because they provide a higher level of service and have access to a global network of carriers. 

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When choosing between a freight forwarder and a 3PL, it is important to consider the size and scope of your shipping needs, the level of service you require, and the cost of shipping. If you only ship domestically or have small shipments, a 3PL may be a better option. However, if you ship internationally or have large or heavy shipments, you will need to use a freight forwarder.

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Related: Don't Make These 5 Mistakes When Choosing A 3PL Warehouse

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Cost of Freight Forwarding vs 3PL

The cost of freight forwarding and 3PL services can vary depending on the size and scope of your shipping needs. In general, freight forwarding is more expensive than 3PL, but it may be the best option for you if you are shipping goods internationally or if you need to ship large or heavy items. 

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3PL providers typically offer a wide range of services, which can be customized to meet your specific needs. 3PL providers can also help you reduce your shipping costs by consolidating shipments and using their volume discounts with carriers. 

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If you are looking for a comprehensive outsourced logistics solution, 3PL is likely the best option for you. 3PL providers can offer you a wide range of services, including transportation, warehousing, and freight management. They can also help you reduce your shipping costs and increase the efficiency of your shipping operations. 

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Conclusion

When choosing between a freight forwarder and 3PL provider, you will need to consider your specific shipping needs. If you are shipping goods internationally or if you need to ship large or heavy items, freight forwarding is likely the best option for you. If you are looking for a comprehensive outsourced logistics solution, 3PL is likely the best option for you. 3PL providers can offer you a wide range of services, including transportation, warehousing, and freight management. They can also help you reduce your shipping costs and increase the efficiency of your shipping operations. 

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Recommended: Freight Broker Vs. Freight Forwarder: What's The Difference?