Second-party logistics

A Second-party logistics provider (abbreviated 2PL) is an asset-based carrier, which actually owns the means of transportation.

Type of 2PL

Second-party logistics providers are:

  • shipping lines, which own, lease, or charter their ships,
  • airlines, which own, lease, or charter their planes,
  • truck companies, which own, or lease their trucks,
  • barge companies, which own, lease, or charter their barge,
  • rail companies, which own their trains,
  • warehouse owners.

Transportation industry

In the transportation industry, the second-party logistics providers are segmented between different categories of transportation:

  • seafreight, which regroups shipping lines and barge companies,
  • airfreight, which regroups the airlines, as well as the cargo helicopter companies,
  • trucking, which regroups the truck companies and the van companies,
  • railways, which regroups the rail companies,
  • warehousing and logistics.

Terminology

In the "PL" terminology, it is important to differenciate the 2PL from the:

  • 1PL, which are the shipper or the consignee,
  • 3PL, which are one stop shops for the 1PL, such as freight forwarders or courier companies,
  • 4PL, which are consulting firms such as Deloitte, SCMO (company), BMT Limited, or Accenture.

Overlapping

2PL can also be 3PL at the same time in the following cases:

  • when a shipping line owns a freight forwarder,
  • when an airline owns a general sales agent (GSA),
  • when a freight forwarder owns trucks, or a warehouse,
  • when a courier company owns planes, trucks, or a warehouse.

See also

  • Airline
  • Cargo airline
  • List of airlines
  • Shipping line
  • List of ship companies
  • Road transport
  • Ship transport
  • Containerization
  • Rail transport
  • Freight
  • Shipping
  • Logistics
  • Transportation
  • Supply chain management
  • Intermodal freight transport
  • 1PL, First-party logistics provider
  • 3PL, Third-party logistics provider
  • 4PL, Fourth-party logistics provider