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Thanks much for the advice! I appreciate it! Btw, what's a 3PL?

 

Third Party Logistics

 

from what I understand, LLC is the way to go. Correct me if I'm wrong.

 

Well, that's where I'm ###### near a green horn again after coming off the road 12 yrs ago... I don't have the first clue what third party logistics is.

 

3PL is where a shipper or receiver outsources their logistics. In other words they get rid of college educated shipping office manager and the cheaper guy on the forklift gives you your bills. 3PL is responsible for finding all trucks to cover loads, vetting carriers, and payment. It's practically the same thing as working directly with a shipper.

 

Many 3PL's work for a flat fee. The relationship with the shipper is different with each shipper. It can be confusing because some pure brokers will say they are 3PL's (while that may be true from a Websters definition) but when financial markets are looking at companies they would not consider many of the 3PL's.

And then you have some that perform 3PL work for one customer and are just brokering for another.

What I like about working with TRUE 3PL's is that it rarely hits a load board, the rates are typically better than even contract rates and you have the opportunity to work contract work. Also, they are willing to pay for quality service and many have rankings so if you perform well you can get preferred status. We have this with some and 9/10 times when we submit our bid we get it at rates above what people with lower rankings have bid.

 

A quick question .... .... is CHRW a 3pl ?