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Difference between a freight forwarder and 3rd party logistics provider

05 Sep 2020

Top Freight Forwarding Companies in India
Shipping your goods to a different region is a complicated and time-consuming process as it involves multiple tasks that have to be completed within a specified time frame. It is really confusing to decide how to move your bulk goods from one place to another. To solve these problems many companies have evolved as a service provider to navigate the complex shipment arrangements and they are freight forwarders and 3PLs. Both freight forwarder and 3PL deal with the shipping but the way of their service is different. They have their own capabilities, costs, and working styles

Freight Forwarder

A freight forwarder company helps in moving shipment from one place to another by using single or multiple shipping modes and carriers. While shipping from one country to another there may involve shifting goods from one or more shipping modes and this makes the process hassle. So, freight forwarders help you in this process by making necessary arrangements. The freight forwarders are not the shipping companies but they are service providers and are responsible for setting up all of the shipping services that a customer needs with the carrier. Some freight forwarders provide limited storage of goods with respect to the shipping

Third-Party Logistics Provider

A third-party logistics company is a complete service company that takes care of everything that is involved in the shipping process. The complete care includes the entire supply chain from warehousing to shipments and to logistics and is solely responsible for the shipment. If any problem arises in the shipping process the third-party logistics service providers make the decision to tackle the problem and the customer needs not to have to worry. All decisions including carriers, packers, warehouses, or shipping methods are done by 3PL. The customer has to just concentrate on their business goals and the rest shipping process is carried out by the service providers

It is advantageous to use 3PL service providers as they make it easier to get real-time updates and tracking of the shipment since their business is equipped with web and mobile-based application software. 3PL also makes business economical and reliable as they cut unnecessary time and cost

A 3PL offers additional services that are benefitted by the customers whereas freight forwarders are just middlemen or mediators between the customer and the shipping company. 3PL has an additional role like a carrier, keeper of warehoused goods, packer, and biller all in one. They are experts in solving logistics problems and well experienced in implementing solutions.

So choosing between freight forwarder and 3PL depends on the requirement like distance of movement of goods, kinds of goods and the deadline. Usually, customers are more satisfied with the 3PL service