What Is a Third Party Logistics Company and How to Choose One

What Is a Third Party Logistics Company and How to Choose One

What is a 3PL, how does third party logistics work, and how to choose the right 3PL partner for your chemical supply chain.

Luis Uribe
Luis Uribe
Founder & CEO

A third party logistics company — 3PL — is an outsourced logistics provider that manages some or all of a company's supply chain operations. Instead of handling freight internally with your own trucks, warehouses, and logistics staff, you contract with a 3PL to manage transportation, warehousing, distribution, or the entire logistics chain on your behalf.

For chemical manufacturers and distributors, the right 3PL partner can transform your supply chain from an internal cost center into a competitive advantage. The wrong one can create compliance risks, service failures, and costs that exceed what you'd spend managing logistics yourself.

What a 3PL does

The scope of 3PL services ranges from basic transportation brokerage to full supply chain management. Common services include freight brokerage and carrier management (finding and vetting carriers for each shipment), transportation management (planning, executing, and optimizing shipping across modes), warehousing and distribution (storing product and managing inventory), freight forwarding (managing international shipments including customs), technology and visibility (tracking, reporting, and analytics), and compliance management (regulatory documentation, hazmat, and safety).

Not every 3PL offers every service. Some specialize in transportation only. Others offer end-to-end supply chain management including warehousing, distribution, and technology integration. The right scope depends on your company's needs and internal capabilities.

Why chemical companies use 3PLs

Specialized compliance management

Chemical logistics involves DOT hazmat regulations, EPA requirements, OSHA standards, and potentially FDA regulations for food-grade products. Managing compliance internally requires dedicated staff, ongoing training, and constant regulatory monitoring. A 3PL that specializes in chemical freight handles this as a core competency.

Carrier network depth

A chemical 3PL maintains relationships with hundreds or thousands of qualified carriers — screened for hazmat authority, equipment capability, insurance coverage, and safety records. Building this network internally takes years and significant resources. Accessing it through a 3PL is immediate.

Scalability

Chemical demand fluctuates. Seasonal products, market cycles, and project-based demand create volume swings that are expensive to staff internally. A 3PL scales capacity up and down without the fixed costs of internal logistics operations.

Cost optimization

3PLs see rate data across hundreds of shippers and thousands of lanes. This visibility allows them to identify cost-saving opportunities — mode optimization, lane consolidation, carrier negotiation — that individual shippers can't access with their limited data set.

How to choose the right 3PL for chemical logistics

Verify chemical freight specialization. A 3PL that handles chemicals as one category among many won't have the depth of knowledge you need. Look for a provider where chemical and liquid bulk freight is a core business — not a sideline.

Evaluate their carrier screening process. Ask specifically how they vet carriers for chemical freight: hazmat authority verification, insurance minimums, CSA score thresholds, equipment inspection requirements, and driver qualification standards.

Assess their compliance capabilities. Can they manage DOT hazmat documentation? Do they coordinate tank wash and verify prior cargo? Do they understand EPA and OSHA requirements for chemical transport? These aren't optional for chemical logistics.

Check their technology. Real-time tracking, automated status updates, reporting dashboards, and document management should be standard — not premium add-ons.

Talk to their chemical shipper references. Ask about problem resolution, not just routine service. How does the 3PL handle a contamination claim? A dropped load? A compliance issue? That's where the real quality shows.

Evaluate account management structure. Will you have a dedicated account manager or be routed through a call center? For chemical freight, a dedicated contact who knows your products, facilities, and requirements is essential.

Total Connection as your chemical logistics 3PL

Total Connection has operated as a specialized chemical freight 3PL since 1994. Our services include liquid bulk freight brokerage, hazmat compliance management, tank wash coordination, international ocean freight, air freight, project cargo, and warehousing coordination.

Every customer gets a dedicated account manager — one person who knows your freight, your facilities, and your requirements. Our 30,000+ pre-approved carrier network covers every major chemical shipping lane in North America, and our international capabilities extend your reach globally.

Call 732-817-0401 or request a quote. We'll evaluate your chemical supply chain and recommend a logistics program that fits.

Frequently Asked Questions

What is a 3PL?

A third party logistics company (3PL) is an outsourced logistics provider that manages some or all of a company's supply chain operations — transportation, warehousing, distribution, freight forwarding, and/or compliance management.

Why do chemical companies use 3PLs?

Chemical logistics involves complex regulatory compliance (DOT, EPA, OSHA, FDA), specialized equipment requirements, and carrier networks that take years to build. A 3PL that specializes in chemical freight provides immediate access to this infrastructure without the cost and time of building it internally.

What's the difference between a freight broker and a 3PL?

A freight broker arranges individual shipments between shippers and carriers. A 3PL provides broader supply chain management — which may include brokerage but also encompasses warehousing, distribution, technology, and strategic logistics planning. Some companies, like Total Connection, operate as both.

How much does a 3PL cost?

3PL fees are typically built into the shipping rate or charged as a management fee. The cost varies based on services provided, volume, and complexity. A good 3PL saves more than it costs through better carrier rates, avoided compliance issues, and prevented service failures.

Is Total Connection a 3PL?

Yes. Total Connection operates as a specialized chemical freight 3PL offering liquid bulk brokerage, hazmat compliance, tank wash coordination, international freight, and warehousing coordination — all managed by dedicated account managers since 1994.

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