There are many different types of 3PL providers.

Small truck transportation brokers connect shippers with transportation carriers.

Customs brokers are experts in import/export documentation

Freight forwarders arrange transportation by air, land or sea. They combine smaller shipments
into large shipments to get good rates.

The risk with 3PL providers is that your company becomes dependent on them.
NVOCC’s or Non vessel-operating common carriers are responsible for any damage to the
shipment. Freight forwarders only arrange shipments, but the transportation carriers
themselves are responsible for damage.

Another difference between NVOCC’s and freight forwarders is that NVOCC’s do not operate
any transportation vehicles. However, they usually operate their own shipping containers, which
freight forwarders do not.
 NVOCCs are authorized to issue Master Bills of Lading for the shipments they handle, but freight
forwarders can only issue house bills of lading.