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Third Party Logistics (3PL) Companies

Third Party Logistics (3PL) Companies

Mansi B
Mansi B
Created on
February 28, 2025
Last updated on
February 28, 2025
12 min read
Written by:
Mansi B
Verified by:

Shipping tasks often pile up, leading to stress and mounting expenses. Late deliveries can wreck business plans, and hidden handling fees can shrink profit margins. Worrying about these problems drains energy and time. When capacity is stretched thin, confidence in timely fulfillment can feel out of reach.

Third-party logistics companies clear these hurdles. They manage shipping, warehousing, and tracking without adding extra complexity. They simplify transport so business owners can focus on product innovation. With the right partner, shipping worries fade. Payments stay predictable, shipments run on schedule, and customers remain happy. Now, let’s explore some of the best ones below.

What is Third-Party Logistics?

Third-party logistics is a service where outside providers handle a range of supply chain functions. Tasks can include storing products, picking and packing orders, and shipping. 

Many third-party logistics companies offer specialized services like temperature-controlled transport or international freight documentation. By outsourcing these details, businesses skip training internal teams for tricky shipping tasks. Time once spent on compliance checks can be redirected toward growth, product improvements, and marketing efforts.

Most firms leverage large networks, cutting transit delays and consolidating multiple shipments across regions. 

How to Choose Third-Party Logistics Partners

Picking a logistics provider often starts with identifying service needs. Some businesses require temperature monitoring for sensitive goods, while others need faster air freight routes. Here are some tips for choosing 3PL partners: 

  • Learn about their warehousing capacity and order handling speeds. An extensive network shortens delivery times, while well-managed inventory systems reduce errors. 
  • Check references from previous clients to see how each candidate responds under pressure. Rates and contract terms must be transparent to avoid surprise fees later.
  • See if they offer technology tools that add real-time tracking or automated notifications. Frequent updates build trust and give clarity on shipments’ progress. 
  • Use user-friendly platforms to simplify tasks like generating shipping labels or scheduling pickups. Precise data helps forecast demand and adjust inventory across different warehouses.
  • Verify global reach when planning cross-border shipping. This includes knowledge of customs regulations, documentation, and local taxes. 
  • Some third-party logistics companies even manage reverse logistics or returns. Others specialize in hazardous materials or fragile items. Matching a provider’s core strengths with a business’s shipping profile often leads to fewer problems.
  • Weigh costs against potential benefits. A slightly higher rate may bring better customer service, advanced technology, or broader coverage. Examine performance metrics to see on-time delivery rates or error margins. 

Best Third-Party Logistics Companies in 2025

Below is a list of the top third-party logistics companies that benefit businesses worldwide in different ways by delivering their services:

1. FedEx

FedEx is known worldwide for express shipping and reliable air freight. Its operations span more than 220 countries, making it a go-to for global deliveries. Many e-commerce vendors trust its coverage to boost customer satisfaction.

The company supports small packages, heavy freight, and temperature-controlled cargo, catering to diverse industries such as healthcare and manufacturing. Weight limits vary, with some services handling shipments up to 150 pounds per package.

Its customs clearance solutions simplify cross-border trade, reducing paperwork for importers and exporters. This can shave days off shipping timelines and avoid compliance pitfalls. Built-in support addresses different tax considerations.

Businesses can choose from various service speeds, from economy ground shipping to same-day deliveries, with transparent tracking at each stage. Freight quotes start around 20 USD for lightweight parcels and rise with distance and weight.

Key Features

  • Online tools for scheduling pickups, tracking shipments, and generating labels
  • Integrated customs brokerage for cross-border movements
  • Temperature-sensitive shipping solutions
  • Flexible rate options for different package sizes

Pros

  • Faster delivery across major international routes
  • Strong network for time-critical parcels

Cons

  • Premium costs may be steep for urgent requests
  • Strict package dimension limits on specific routes

2. UPS

UPS stands out for its expansive ground network in the United States and beyond. It handles millions of packages daily, reaching over 200 nations. Many retailers partner with UPS for predictable shipping times and broad coverage. This scale helps reduce transit delays and promotes dependable service for local and global clients.

The company offers various plans, including next-day air and affordable ground services. Shipments can weigh up to 150 pounds each. Its customs expertise covers documentation and duty payments, easing cross-border processes. Warehousing and fulfillment options help brands store products and handle returns efficiently.

Key Features

  • Detailed customs brokerage for global shipments
  • In-store drop-off points and pickup locations
  • Range of transit times, including overnight
  • Integrated returns management
  • Freight consolidation for cost reduction
  • Paperless invoice integration for shipments

Pros

  • Solid brand recognition in all major markets
  • Efficient package tracking system
  • Multiple shipping price tiers for different budgets

Cons

  • Extra surcharges during busy seasons
  • Complex pricing tiers can cause confusion
  • Transit times can fluctuate during extreme weather

3. DHL

DHL offers various shipping modes, from express air options to bulk ocean freight. It operates in over 220 countries and offers last-mile delivery and customs brokerage. Many international brands rely on DHL for medical, automotive, and high-value shipments that require careful handling.

DHL’s warehousing services, including pick-and-pack, serve retailers aiming for fast distribution.

Key Features

  • DHL addresses duties and taxes through its in-house clearance teams.
  • Clients can ship items up to 660 pounds for heavier cargo
  • DHL has dedicated return logistics and direct marketplace integrations 
  • It offers cold-chain handling for perishables
  • Multi-modal shipping options are available

Pros

  • Excellent global presence
  • Specialized solutions for high-value or temperature-sensitive goods

Cons

  • Rate hikes can appear during busy periods.
  • Prices can start at around 15 USD for smaller parcels.
  • Advanced services may cost more than standard offerings

4. Blue Dart

Blue Dart is a prominent player in South Asian logistics. It offers reliable services in India and surrounding regions. With an extensive air and ground network, it often delivers to remote locations where other carriers have limited reach.

Many companies choose Blue Dart for domestic e-commerce shipments that require speed and consistency. Cross-border shipping is possible, though coverage is mainly focused on South Asia. 

Weight restrictions vary, with some services allowing shipments up to 70 kilograms. Rates for small envelopes usually start around 2 USD and climb as the weight increases.

Key Features

  • Broad reach in South Asian markets
  • Time-critical shipping options
  • Door-to-door pickup and delivery
  • Tracking tools via web and mobile

Pros

  • Local expertise across diverse Indian regions
  • Quick delivery for domestic e-commerce

Cons

  • Limited global reach outside South Asia
  • Higher fees for deliveries in remote areas

5. DTDC

DTDC is known for its cost-effective solutions in India and select international lanes. It manages domestic courier services, express deliveries, and specialized e-commerce fulfillment. Many small and medium enterprises pick DTDC for shipments within regional markets.

Document shipping, parcel movement, and cross-border services are available. Weight limits can range to 50 kilograms, though heavier options might need custom quotes. Real-time tracking tools keep customers updated at every step.

The company handles diverse categories, from official paperwork to electronic items. Certain hazardous materials may be restricted. Pricing often begins at around 1 USD for lightweight envelopes, then escalates with size and distance.

Its distribution centers span multiple zones, cutting transit time in dense urban areas. Returns management is also provided, aiding merchants in streamlining product exchanges.

Key Features

  • Affordable rates for regional businesses
  • Web-based tracking for transparency
  • E-commerce fulfillment for small-scale retailers
  • Flexible domestic coverage

Pros

  • Budget-friendly for local shipping
  • Multiple service tiers for urgent or standard deliveries

Cons

  • Global footprint is smaller compared to more prominent players
  • Weight limits can be restrictive for more significant freight

6. TNT

TNT, part of the FedEx family, focuses on European and international markets. It offers express and economy shipping for parcels and freight. The network spans road and air routes, aiding businesses seeking moderate to rapid transit times.

Customs clearance assistance is provided, reducing headaches for cross-border shipments. TNT handles packages up to 70 kilograms, though specialized freight solutions allow heavier loads with separate arrangements. Online tools let shippers schedule pickups and print labels.

The brand offers B2B services and supports e-commerce sellers who want to send goods across Europe and beyond. Transit reliability is a key advantage for time-sensitive materials, including manufacturing components.

Small package costs often begin at around 15 USD and vary based on weight, size, and destination zone. Fuel surcharges may appear in volatile markets.

Key Features

  • Strong road network across Europe
  • Express and economy service levels
  • Integrated customs assistance
  • Online scheduling and labeling

Pros

  • Suitable for pan-European shipping
  • Good track record with time-definite services

Cons

  • Limited drop-off locations in rural areas
  • Possible added surcharges in unstable fuel markets

7. XPO Logistics

XPO Logistics concentrates on freight brokerage, less-than-truckload shipping, and last-mile delivery. It serves multiple sectors, including retail, manufacturing, and home services. Real-time tracking and route optimization boost efficiency for bulky or oversized goods.

The company manages shipments within North America and selects global routes, handling items like furniture and heavy machinery. Some offerings incorporate white-glove service, where delivery includes setup or product assembly upon arrival.

XPO teams coordinate customs filings for cross-border deals and gather necessary duties or taxes. Weight limits depend on the type of freight, but heavier loads often move through dedicated trucking solutions.

Costs start in the 30 USD range for small LTL consignments, then climb with factors like handling complexity, special equipment, or longer distances.

Key Features

  • Last-mile solutions with installation services
  • LTL freight consolidation
  • Real-time route optimization
  • Industry-specific expertise (retail, manufacturing)

Pros

  • Suited for oversized or specialty goods
  • White-glove options enhance customer satisfaction

Cons

  • Not always cost-effective for lighter parcels
  • Primarily strong in North America, with narrower global coverage

8. Kuehne+Nagel

Kuehne+Nagel is a primary global logistics provider recognized for its ocean freight, air freight, and contract logistics services. It has an extensive worldwide presence caters to sectors like pharma, aerospace, and retail. Companies rely on its extensive carrier network to move cargo efficiently across continents.

Fulfillment centers manage complex distribution tasks, including picking, packing, and labeling e-commerce orders. Kuehne+Nagel’s digital platforms give shipment visibility and help optimize routes. Customs brokerage teams assist with legal documentation, tariffs, and local regulations.

Temperature-controlled shipping protects sensitive products, including pharmaceuticals and perishable foods. Heavy freight can exceed 500 kilograms, though pricing increases with space requirements and specialized handling.

Typical rates for smaller shipments begin at around 25 USD and escalate with route distance. Strong alliances with global carriers make it easier to find backup options when capacity is tight.

Key Features

  • Extensive air and sea freight networks
  • Contract logistics for warehousing and distribution
  • Specialized handling of pharmaceuticals
  • Advanced digital tracking tools

Pros

  • Offers end-to-end supply chain management
  • Deep experience with complex international shipping

Cons

  • Premium costs for high-security or temperature-sensitive loads
  • It can feel significant and less personal for small businesses

9. DB Schenker

DB Schenker leverages its parent company’s rail heritage, providing rail freight across Europe and linking it with sea and air routes globally. Industries like automotive, electronics and consumer goods often choose DB Schenker for large-scale shipments requiring synchronized solutions.

Storage and distribution options include fully managed warehouses, packaging, and returns processing. The firm’s tracking platform delivers location updates and estimated arrival times. Cross-border specialists handle duties and certificates for regulated goods.

Heavier containers and pallets, such as rail-to-sea connections, can move seamlessly on combined modes. Many businesses use this approach to cut costs, though the speed depends on route selection. Smaller parcels can ship via its air express services.

Rates for shipments vary widely, starting near 30 USD for small parcels. Bulk deals become more attractive as volume rises, especially for Europe-to-Asia routes.

Key Features

  • Rail freight integration for cost savings
  • Sea, air, and road coverage
  • Dedicated warehousing and packaging services
  • Strong background with heavy industry clients

Pros

  • Ideal for large or complex supply chain needs
  • Smooth multi-modal transitions

Cons

  • Setup might be slower for small-scale shipments
  • Rate calculations can be tricky for mixed transport modes

10. C.H. Robinson

C.H. Robinson is well-known for freight brokerage and global forwarding. It coordinates shipments across trucking, air, and ocean channels. Many importers and exporters use its services to handle varying volumes, from single pallets to full container loads.

The company’s tech platform, Navisphere, unifies quoting, booking, and real-time tracking. Shippers can check capacity, compare rates, and monitor shipments in one place. Expert teams handle compliance checks for cross-border transactions, including tariffs and duties.

Specialized solutions target fresh produce, chemicals, and temperature-controlled goods. Weight limits vary, but heavier shipments often go by ocean or dedicated trucking. Clients appreciate flexible pricing structures tied to market conditions.

For short-distance trucking, C.H. Robinson’s smaller loads might start at around 50 USD and increase with distance or complexity. Global coverage spans significant regions, giving companies strategic reach for multiple trade lanes.

Key Features

  • A vast network of carriers for different transport modes
  • Navisphere platform for quotes and shipment updates
  • Expertise in temperature-controlled cargo
  • Customs documentation support

Pros

  • Versatile services for small and large shipments
  • Helpful compliance and tariff guidance

Cons

  • Fluctuating rates tied to carrier availability
  • Busy segments can lead to limited capacity at peak times

Conclusion 

Choosing the right partner in this area can save time and money while delivering consistent customer service. It can also open new markets for brands aiming to ship overseas, boosting global sales potential. Different providers excel at various tasks, so research is key. Temperature-sensitive shipments, urgent deadlines, or complex customs paperwork each demand a skilled partner.

Third-party logistics companies offer access to carrier networks, technology tools, and expert teams that smooth out shipping hurdles. From small local parcels to massive international freight, a good 3PL arrangement keeps goods moving efficiently. 

Third-Party Logistics Companies FAQs

What makes third-party logistics companies better than in-house fulfillment?

They often bring expanded carrier networks, bulk shipping discounts, and specialized knowledge, which can lower overhead and free up resources for other areas. Their technology platforms track orders in real-time. In contrast, in-house teams might struggle to scale and face more significant staff or equipment investments.

How do 3PL providers handle customs duties and taxes on international shipments?

They assign customs experts to file paperwork, calculate duties, and pay taxes upfront. Businesses can then reimburse these expenses. This approach avoids border delays and prevents shipment returns. Some providers also track evolving trade rules, ensuring businesses remain compliant when moving goods across multiple countries.

Can third-party logistics companies manage returns or reverse logistics?

Yes. Most established 3PL partners have dedicated processes for managing product returns, inspections, and restocking. They generate return labels, arrange pickup, and handle refunds or replacements. This keeps returns organized and lessens the burden on in-house teams. It also improves the customer experience by speeding up the refund cycle.

Are there weight or size limits when using third-party logistics companies?

Limits vary. Some providers handle up to 150 pounds of parcels, while others move large palletized cargo. Specific modes, like ocean freight, allow heavier shipments beyond thousands of pounds. Companies specializing in big or bulky items may need freight carriers instead of standard parcel services. Always check each provider’s restrictions.

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