The two terms get used interchangeably, and that is part of the confusion. When you are choosing a logistics partner, what matters is not the label but what the company actually does for your freight, and whether it is licensed to do it.
What a freight broker does
A freight broker sits between shippers and carriers. On a typical shipment, a broker:
- learns your freight, lanes and timing and gives you a quote,
- finds a carrier with the right equipment and checks its authority and insurance,
- confirms rates, pickup and delivery details in writing,
- keeps you informed while the load moves and handles problems when plans change, and
- closes it out with paperwork, invoicing and carrier payment.
A broker that owns no trucks is called non-asset. Because it is not trying to fill its own trucks, a non-asset broker can choose the carrier that best fits each load.
What a 3PL does
A third-party logistics provider is any outside company that runs part of your logistics for you. Depending on the 3PL, that can include:
- arranging transportation (brokerage),
- storage and inventory management,
- order fulfillment and returns, and
- freight audit, customs and other supply chain services.
Some 3PLs do all of it. Others, including many freight brokerages, focus on transportation only.
Freight broker vs 3PL at a glance
| Freight broker | 3PL | |
|---|---|---|
| What it is | A company that arranges truck transportation between shippers and carriers | A broad term for any company that handles outsourced logistics |
| Typical services | Quoting, carrier selection, coordination, updates, paperwork | Can include transportation, storage, fulfillment and more |
| Owns trucks? | Non-asset brokers do not | Varies |
| License | FMCSA broker authority plus $75,000 financial security | "3PL" is not a license; brokering still needs broker authority |
| Best for | Shippers who want someone accountable for getting freight moved | Shippers outsourcing several logistics functions at once |
Which do you need?
If your main need is moving freight reliably, whether full truckloads, LTL, reefer or flatbed, a freight broker is usually the right fit. If you also need someone to store inventory and fulfill orders, look for a 3PL that offers those services, or pair a storage and fulfillment provider with a broker you trust for transportation.
Either way, check the company on FMCSA before you ship. Here is how to verify a freight broker.
Where Summit Link fits
Summit Link Logistics is a freight brokerage and third-party logistics company focused on transportation. We do not own trucks and we do not provide storage or fulfillment. We arrange your freight through carrier partners, and one team stays accountable for it from the first quote through delivery and invoicing.
Moving freight on a regular schedule? Request a quote or browse our freight lanes.