Third-Party Hauling Risk: Liability Extends Beyond the Pavement


Third-party logistics firms, often referred to as 3PLs, manage the transportation and handling of goods or materials for a third-party without taking the title of the product. A 3PL may be contracted to coordinate every aspect of the supply chain for the customer, including inventory management, brokering of the freight, warehousing and transport. For example, a manufacturer may elect to hire a dedicated logistics firm to transport their products from factory to warehouse to end user, rather than allocating resources to fleet and driver management. From a risk management perspective, hiring a 3PL may also benefit the manufacturer by mitigating the auto liability risk. In this article, we will explain why it is essential to assess potential risk in the hiring of a 3PL.