# Freight broker vs 3PL vs carrier

> A carrier moves freight with its own trucks, a freight broker arranges transportation by a carrier for compensation without moving the freight itself, and a 3PL (third-party logistics provider) is a broader outsourcing partner that may broker, warehouse and manage transportation.

The first two are legal categories. A for-hire motor carrier is "a person engaged in the transportation of goods or passengers for compensation" (49 CFR 390.5): it operates trucks and needs a USDOT number, operating authority for regulated interstate freight, and insurance. A broker is a person who, for compensation, "arranges, or offers to arrange, the transportation of property by an authorized motor carrier" (49 CFR 371.2). A broker needs its own broker authority, a US$75,000 bond or trust fund and a BOC-3 filing, and never takes possession of the freight.

"3PL" is not an FMCSA registration category. It is an industry umbrella term for companies that take over logistics work for shippers: brokerage, warehousing and fulfillment, managed transportation, freight audit. What matters legally is the activity: a 3PL that arranges truck moves for customers is brokering and needs broker authority for that part of its business. A freight forwarder is a separate category again: it assembles and consolidates shipments and takes responsibility for them from origin to destination while using other carriers.

## How the roles work together on one load

A shipper tenders a load to a broker or 3PL. The broker finds a carrier, agrees a price and sends a [rate confirmation](https://transportial.com/en-us/glossary/rate-confirmation). The carrier picks up against the shipper’s [bill of lading](https://transportial.com/en-us/glossary/bill-of-lading), delivers, and invoices the broker, who invoices the shipper. The broker earns the spread between the two.

Many companies are hybrids: an asset-based carrier with a brokerage arm, or a 3PL that runs a small fleet. A carrier that arranges a load it has already accepted and is legally bound to haul is not acting as a broker for that load. Software has to support both sides, own trucks and brokered capacity, on one [plan board](https://transportial.com/en-us/product/plan-board).

## Frequently asked questions

### Is a 3PL the same as a freight broker?

Not necessarily. Every freight broker could loosely be called a 3PL, but many 3PLs do much more than brokerage: warehousing, fulfillment, customs, managed transportation. When a 3PL arranges truck transportation for a customer, it needs broker authority for that activity.

### Does a freight broker need an MC number?

Yes. A property broker needs broker operating authority (an MC number), a USDOT number, a BOC-3 designation of process agents and a US$75,000 surety bond (BMC-84) or trust fund (BMC-85). Since January 16, 2026, broker registration is suspended immediately if the bond or trust drops below US$75,000.

### Who is liable if freight is damaged on a brokered load?

The carrier is generally liable for loss and damage under the Carmack Amendment while the freight is in its care. Brokers are not carriers, but contracts, negligent-selection claims and how the broker presented itself can all affect its exposure. Check the broker-carrier agreement and your cargo insurance.

### What is an asset-based 3PL?

A 3PL that owns or leases trucks, trailers or warehouses and uses them for customers, as opposed to a non-asset 3PL that only arranges capacity from others. Many large logistics companies run both models side by side.


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