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When your forwarder (the 3PL service provider) instead of using its own resources further subcontracts the shipment. Then that party is called 4PL.
In industry it can go up to 5PL or even 6PL sometimes.
For example I am here in Dubai, want to import something from Europe, I ask my freight forwarder (3PL) to import the goods. He contacts his business partner in Europe (4PL)to collect those goods and ship them.
That business partner actually hires a shipping service(5PL) who hauls it from Europe to my destination and hands over to my FF (the 3rd PL)in Dubai.
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