There are many questions to ponder in logistics, including what is a 3PL and how it can help my business thrive? The answers rest in both consolidated freight shippers’ services and outsourced expertise. Freight rates will likely continue to rise through the remainder of 2022, according to Business Insider. “The Freightos Baltic Index — a measure of global shipping prices — sat at $9,488 on March 18, meaning it cost nearly $10,000 on average to ship a 40-foot freight container. That’s almost seven times higher than the March 2020 reading of $1,400. While that’s down from the highs seen in the fall of 2021, it’s still holding at extremely elevated levels.”

Cross-docking is distributing products from a supplier or a manufacturer directly to the customer or retailer. It involves the distribution occurring in a terminal where inbound trucks transfer goods to outbound trucks. Cross-docking provides a centralized area to store specific products and their similar counterparts easily accessible by the shipper and receiver, mainly when unforeseen circumstances like delays, driver and capacity shortages occur. 

When choosing a 3PL providers to work with, there are two options: asset-based 3PL companies and non-asset-based companies. By working with an asset-based 3PL company, it will be easier to access the assets that are available in-house. When considering the better return on investments, flexibility, and more reliable freight costs, it is best to look at what the shipper will need. Selecting an asset-based 3PL company will bring less hassle to the company and allow for a better solid foundation.