Why Adding 3PLs Can Backfire on Shippers

Managed transportation isn’t one thing — and misunderstanding it can cost shippers money. John Conrad of Evans Transportation Services breaks down what managed transportation actually means, where AI helps (and where it’s oversold), and why using too many 3PLs can drive rates up instead of down. If you manage freight, routing guides or brokerage partners, this is the part you need to hear. #ManagedTransportation #3PL #Freight Shippers who spread freight across multiple third-party logistics providers in pursuit of lower rates may be getting the opposite result, according to John Conrad, Chief Revenue Officer at Evans Transportation Services. When too many 3PLs chase the same lane simultaneously, carriers recognize the bidding competition and delay accepting loads, ultimately extracting higher rates — a dynamic Conrad calls “broker poker.