Second-party logistics
Encyclopedia
A Second-party logistics provider (abbreviated 2PL) is an asset-based carrier
, which actually owns the means of transportation.
Common carrier
A common carrier in common-law countries is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport...
, which actually owns the means of transportation.
Type of 2PL
Second-party logistics providers are:- shipping lineShipping line-History of shipping lines:Large-scale shipping lines became widespread in the nineteenth century, after the development of the steamship in 1783. At first, Great Britain was the centr of development; in 1819, the first steamship crossing of the Atlantic Ocean took place and by 1833, shipping lines...
s, which own, lease, or charter their ships, - airlineAirlineAn airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
s, which own, lease, or charter their planesFixed-wing aircraftA fixed-wing aircraft is an aircraft capable of flight using wings that generate lift due to the vehicle's forward airspeed. Fixed-wing aircraft are distinct from rotary-wing aircraft in which wings rotate about a fixed mast and ornithopters in which lift is generated by flapping wings.A powered...
, - truckTruckA truck or lorry is a motor vehicle designed to transport cargo. Trucks vary greatly in size, power, and configuration, with the smallest being mechanically similar to an automobile...
companies, which own, or lease their trucks, - bargeBargeA barge is a flat-bottomed boat, built mainly for river and canal transport of heavy goods. Some barges are not self-propelled and need to be towed by tugboats or pushed by towboats...
companies, which own, lease, or charter their barge, - railRail transportRail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
companies, which own their trainTrainA train is a connected series of vehicles for rail transport that move along a track to transport cargo or passengers from one place to another place. The track usually consists of two rails, but might also be a monorail or maglev guideway.Propulsion for the train is provided by a separate...
s, - warehouseWarehouseA warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload...
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 helicopterHelicopterA helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...
companies, - truckingTruck driverA truck driver , is a person who earns a living as the driver of a truck, usually a semi truck, box truck, or dump truck.Truck drivers provide an essential service to...
, which regroups the truck companies and the vanVanA van is a kind of vehicle used for transporting goods or groups of people.In British English usage, it can be either specially designed or based on a saloon or sedan car, the latter type often including derivatives with open backs...
companies, - railways, which regroups the rail companies,
- warehousing and logisticsLogisticsLogistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
.
Terminology
In the "PL" terminology, it is important to differentiate the 2PL from the:- 1PL, which are the shipperShipperA shipper can be:*Someone who sends goods for shipment, by packaging, labeling, and arranging for transit, or who coordinates the transport of goods*Shipping , someone who supports a fictional romantic relationship, usually on the Internet...
or the consigneeConsigneeIn a contract of carriage, the consignee is the person to whom the shipment is to be delivered to whether by land, sea or air.-A brief statement of law:...
, - 3PL, which are one stop shopOne stop shopOne Stop may refer to:* One Stop, the smallest store format of TescoOne Stop Shop is a term used by many local authorities in the United Kingdom to describe the facility they offer for their residents to discuss and arrange services with officers of the authority...
s for the 1PL, such as freight forwarderFreight forwarderA freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier...
s or courierCourierA courier is a person or a company who delivers messages, packages, and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of express services, and swift delivery times, which are optional for...
companies, - 4PL, which are consultingManagement consultingManagement consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
firms such as CPCS, SCMO, BMTBMT LimitedEstablished in 1985, BMT Group Ltd is an international multi-disciplinary engineering, science and technology consultancy offering a broad range of services, particularly in the defence, energy, environment, maritime transport, marine risk and insurance, shipping and general transportation sectors...
, Deloitte, and AccentureAccentureAccenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across...
.
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 agentGeneral Sales AgentA general sales agent is a sales representative for an airline in a specific country or region. Typically, the GSA is responsible for selling all products of the airline in its region which includes flight tickets and cargo space...
(GSA), - when a freight forwarder owns trucks, or a warehouse,
- when a courier company owns planes, trucks, or a warehouse.
See also
- Cargo airlineCargo airlineCargo airlines are airlines dedicated to the transport of cargo. Some cargo airlines are divisions or subsidiaries of larger passenger airlines.-Logistics:...
- ContainerizationContainerizationContainerization is a system of freight transport based on a range of steel intermodal containers...
- Dial-a-truckDial-a-truckDial-a-Truck is an electronic freight posting service serving North America. It was the first system of its kind and established in 1978....
- First-party logisticsFirst-party logisticsA First-party logistics provider is a firm or an individual that needs to have cargo, freight, goods, produce or merchandise transported from a point A to a point B...
provider - Fourth-party logisticsFourth-party logisticsA Fourth-party logistics provider , lead logistics provider , or 4th Party Logistics provider, is a consulting firm specialized in logistics, transportation, and supply chain management...
provider - Intermodal freight transportIntermodal freight transportIntermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation , without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damages and...
- List of airlines
- List of ship companies
- Owner–Operator Independent Drivers Association
- Road transportRoad transportRoad transport or road transportation is transport on roads of passengers or goods. A hybrid of road transport and ship transport is the historic horse-drawn boat.-History:...
- Ship transportShip transportShip transport is watercraft carrying people or goods . Sea transport has been the largest carrier of freight throughout recorded history. Although the importance of sea travel for passengers has decreased due to aviation, it is effective for short trips and pleasure cruises...
- ShippingShippingShipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
- Supply chain managementSupply chain managementSupply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
- Third-party logistics provider