3PL vs. Freight Brokerage: What No One Tells You (But Should!)

To move goods efficiently, many businesses turn to outside partners to help manage transportation and logistics. Two of the most common options are a Third-Party Logistics (3PL) provider and a freight brokerage.

When comparing a 3PL vs. freight brokerage, both play a role in getting products from point A to point B, but they differ in the breadth of services they provide and how they engage with shippers. 

A 3PL typically offers a broader range of logistics solutions, while freight brokerages coordinate the movement of freight, serving as a professional intermediary that matches shippers with the optimal carrier solutions, arranging and managing each shipment from start to finish.

What many businesses don’t realize, however, is that there’s also a middle ground between the two. S-2 offers the flexibility of a brokerage with the expanded capabilities of a 3PL—providing a hybrid approach that can be tailored to a company’s specific needs.

What is a 3PL?

A 3PL is a company that manages a wide range of supply chain and logistics functions on behalf of its customers. 3PLs offer an integrated suite of services designed to manage and optimize a company’s entire logistics operation.

Typical 3PL services include:

• Warehousing and Distribution: Managing inventory storage, pick-and-pack operations, and distribution.
• Inventory Management: Tracking stock levels, order cycles, and demand forecasting.
• Order Fulfillment: Handling the receipt, processing, and delivery of customer orders.
• Freight Transportation: Coordinating shipments across multiple modes (expedite, truckload, LTL, air, ocean, rail).
• Reverse Logistics: Managing returns, recycling, and disposal of products.

Essentially, a 3PL can become an extension of your business, fully managing transportation functions. When 3PLs take full responsibility for these functions, businesses may have less direct control over the day-to-day transportation process.

What is a Freight Brokerage?

A freight brokerage acts independently to connect shippers with carriers to facilitate the movement of goods. They use market insight and established carrier relationships to secure capacity and coordinate shipments. 

Professional freight brokerages manage the process end-to-end—reducing risk, saving time, and helping to move freight more efficiently and cost-competitively.

While brokers may not directly manage warehousing, fulfillment, or broader functions of the supply chain, quality brokerages support multiple modes of transport and build long-term, trusted relationships with their shippers and carrier partners.

The typical freight brokerage usually provides:

• Rate Quoting and Negotiation: Leveraging market knowledge and carrier relationships to secure competitive, market-aligned pricing.
• Carrier Sourcing: Identifying available capacity for specific shipments.
• Shipment Booking and Dispatch: Scheduling pickups and deliveries, and conveying load details to the carrier.
• Payment and Settlement: Managing invoicing and carrier payment.

Freight brokerages can support everything from one-time shipments to ongoing freight needs, often providing flexibility for businesses that want access to a wide carrier network while maintaining a level of control over the transportation process.

Understanding the Key Differences: 3PL vs. Freight Brokerage

While both 3PLs and freight brokerages help move freight, there are several ways 3PLs offer deeper value and broader services.

#1. Strategic Approach

• Freight brokerages focus primarily on arranging transportation, but many also develop ongoing relationships and provide consultative support over time.
• 3PLs often act as extensions of a business’s supply chain, designing solutions that could span warehousing, transportation, and fulfillment.

#2. Multi-Modal Coverage

• Freight brokerages can work across multiple modes (truckload, LTL, expedite, air charter, drayage, and other specialized services) by tapping into their carrier networks.
• 3PLs frequently offer the same modal variety, but they may also integrate it with warehousing or inventory management.

#3. Level of Responsibility

• Freight brokerages arrange and manage shipments, and the shipper typically retains some direct oversight of the overall logistics process.
• 3PLs often assume responsibility for a larger portion of the supply chain—sometimes including warehousing, order fulfillment, and returns—meaning businesses hand off more operational control.

#4. Technology and Visibility

• Freight brokerages may provide tracking, dashboards, and other visibility tools to manage shipments. In some cases, they may provide Transportation Management Systems (TMS) and advanced analytics.
• 3PLs may also invest in TMS and advanced analytics that tie together multiple aspects of logistics.

At S-2, we developed our own proprietary Transportation Optimization Platform (TOP), a powerful portal that acts as an industry aggregator and decision-making engine for our customers. TOP gives you full control over every aspect of your shipping and freight requirements in one intuitive dashboard. 

Our team also brings decades of logistics experience and insight—what we call Freight IQ—into every solution we deliver. Freight IQ is our ability to look beyond the numbers and see opportunities to move freight smarter, faster, and more cost-effectively.

#5. Carrier Relationships

• Freight brokerages build networks of vetted carriers and may develop trusted, long-term partnerships within those networks.
• 3PLs typically do the same, often layering their carrier relationships while also managing their customers' carrier base with broader service-level agreements, contractual obligations, or regional coverages.

#6. Scalability

• Freight brokerages can flex to handle anything from one-time shipments to long-term, high-volume needs.
• 3PLs often expand alongside a business, adding warehousing, transportation modes, or global reach.

3PL vs. Freight Brokerage vs. S-2 Comparison Chart

When comparing a 3PL vs. freight brokerage, it’s easy to think of them as two separate choices. But in reality, many businesses benefit from a middle ground. That’s where S-2 comes in.

S-2 operates as a hybrid of both models. We deliver many of the advanced capabilities you’d expect from a 3PL—such as multi-modal solutions, powerful technology, robust insurance safeguards and long-term strategic partnerships—while remaining agile and hands-on like a brokerage. At the same time, we don’t take on certain functions that a full-service 3PL would, like warehousing or contract management.

This hybrid approach gives shippers the best of both worlds: access to expanded services where it matters most, without being locked into the overhead of a traditional 3PL model. The result is flexibility—we can tailor solutions around your exact needs, whether that’s a single urgent shipment, a long-term logistics strategy, or a combination of both.

How to Choose Between a 3PL vs. Freight Brokerage vs. S-2

The right logistics partner depends on your shipping patterns, supply chain needs, and long-term goals. Some businesses benefit from the flexibility of a freight brokerage, others need the broader capabilities of a 3PL, and many fall somewhere in between—where a hybrid approach like S-2 can deliver the best balance.

Here’s a quick look at the pros and cons of each model:

Working with a Freight Brokerage: Pros and Cons

Working with a 3PL: Pros and Cons

Working with a Hybrid Partner like S-2: Pros and Cons

Ready to Solve the 3PL vs. Freight Brokerage Dilemma?

At S-2, we know that choosing between a 3PL vs. freight brokerage isn’t always straightforward—because sometimes the right answer is neither. 

That’s why we take a different approach. We combine the flexibility and carrier access of a brokerage with many of the advanced capabilities of a 3PL, including multi-modal solutions, proprietary technology, and strategic, long-term support. 

This model—what we call being the Solution Source—gives you the best of both worlds. You get scalable solutions tailored to your needs without the limitations and costs of a one-size-fits-all 3PL.

Whether you need help with a single urgent shipment or a smarter strategy for your entire transportation network, S-2 is here to architect the right solution for you. Contact us today to learn how our hybrid approach can work for your business.