Third Party Logistics Provider (“3PL”) is an entity that arrange shipments. 3PLs manage and provide advice on transportation and transportation-related services for shippers, freight carriers and other related entities. 3PLs include brokers, freight forwarders, rail transporters, consolidators, shippers and air cargo agents.
The logistics industry is changing rapidly due to the combination of a de-regulated transportation environment, together with 3PLs embracing the internet, e-commerce and other electronic means to provide their logistics services.
These changes significantly impact the liability risks 3PLs face, as these risks are often difficult to predict and equally difficult to “contract away”.
Third Party Logistics Provider also recognize that their customers are changing. Customers are more sophisticated and demonstrate an unwillingness to share liability risks with 3PLs, thereby leaving 3PLs with exposures that require proper evaluation and insurance coverage.
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