GlossaryEN1 min readUpdated: Jun 13, 2026

Incoterms Fourth Party Logistics

No official Incoterm is named 'Fourth Party Logistics' or '4PL'.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://www.investopedia.com/terms/f/fourth-party-logistics.asp

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Definition & Explanation

No official Incoterm is named 'Fourth Party Logistics' or '4PL'. The term instead describes a logistics business model: a 4PL provider is an overarching orchestrator that designs, plans, and optimizes the entire supply chain while managing multiple 3PL operators. A typical scenario: a large corporation engages a 4PL to coordinate five different 3PL operations across various locations—the 4PL acts as the single contact point and assumes overall responsibility for performance and costs. Incoterms clauses (e.g., CIF, DDP) continue to govern risk and cost transfer between buyer and seller; 4PL is an organizational layer above that.

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Incoterms Fourth Party Logistics

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