U.S.-based 3PLs crack $100 billion mark for third straight year
Despite market conditions, 3PLs are making an impact with strong service portfolios.
By Jeff Berman, Group News Editor -- Modern Materials Handling, 5/6/2008
Revenues for United States-based third-party logistics providers (3PLs) passed the $100 billion mark in 2007 for the third consecutive year, according to a report by Armstrong & Associates, a supply chain consultancy.
The report, titled “Hanging Tough: U.S. and Global Third-Party Logistics Market Financial and Acquisition Results for 2007 and Projections to 2010,” notes that 2007’s U.S. 3PL revenue output of $122 billion is impressive, considering the much-publicized ongoing “freight recession,” which dates back to roughly late 2006 and has seen fuel costs, excess capacity and inventory reductions severely impact supply chain operations for shippers and carriers.
Despite these challenging market conditions, U.S. 3PL revenues cracked the $100 billion mark at $103.7 billion in 2005, and hit $113.6 billion in 2006. Last year’s $122 billion represents a 7.2% uptick from 2006.
As in its past reports, Armstrong divides 3PL market segments into four categories:
domestic transportation managementinternational transportation managementdedicated contract carriagevalue-added warehouse/distribution (VAWD)
International transportation management paced these categories with the highest year-over-year net revenue growth at 9.5% and $17 billion, followed by domestic transportation management at 8% and $6 billion, VAWD at 7.7% and $22.5 billion, and dedicated contract carriage at 2.7% and $11.5 billion.
The report adds that 3PL revenue growth was highest in non-asset transportation management, and it also notes overall industry growth continued a pattern of being more than three times the growth of the U.S. gross domestic product.
Strong growth for 3PLs
01/31/2000Third-party logistics market still growing
10/29/2007
View All On-Demand Webcasts
