We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » 3PLs' U.S. revenues hit a record high (again)
inbound

3PLs' U.S. revenues hit a record high (again)

May 1, 2007
DC Velocity Staff
No Comments

Looks like it's time to update the record books. After breaking the $100 billion barrier for the first time in 2005, the third-party logistics services (3PL) market shattered its record again in 2006—this time hurtling past the $110 billion mark.

In its latest annual report on the U.S. 3PL market, consulting firm Armstrong & Associates says that U.S. gross revenues for third-party logistics companies hit $113.6 billion last year, a 9.5-percent increase over 2005's figure. That represents roughly onethird of the estimated $391 billion global third-party logistics market. U.S. net revenues were $53.1 billion.

According to the report, U.S. and Global 3PL Financial and Acquisition Results—2006, the top performer in the U.S. market was the international transportation management (ITM) segment, with a net revenue increase of 17.7 percent. Armstrong attributes that growth to continued economic expansion in the China and Asia-Pacific markets. Kuehne + Nagel, Expeditors International of Washington, DHL, and APL Logistics all turned in strong performances last year, with net income margins of 10 percent or greater compared to net revenues.

Domestic transportation management (DTM) companies, which include freight brokerages, posted a 12 percent gain in net revenues (gross margin). BAX Global, BNSF Logistics, C.H. Robinson, Meridian IQ, and NFI each grew by more than 20 percent, and Hub Group, Penske Logistics, Ryder System, and Werner grew by 10 percent or more.

Net-revenue growth for the DTM category, though, slipped from 18 percent in 2005, and net income margins dropped by 1 percent. Armstrong attributes the decline to the U.S. economic slowdown and calls it a "temporary downturn" that will have no significant long-term importance for key players in that segment.

  • Related Articles

    U.S. industrial property rents hit record high in third quarter, JLL says

    Supply chain disruptions hit record high

    U.S. sea imports to hit all-time record in August due to labor uncertainty, report says

Recent Articles by DC Velocity Staff

Cargo imports forecast to sink near three-year low in February

Air cargo demand slumped in 2022 after “extraordinary” levels in 2021

Logistics gives back: February 2023

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

  • Researchers: Ships can look to Mother Nature for energy-saving ideas

  • Maersk deploys indoor drones for warehouse inventory counts

Now Playing on DCV-TV

C8c3bc6b a91d 4181 a18f 35f288257630

ACPaQ: Fast and reliable automated mixed case palletizer

DCV-TV 4: Viewer Contributed
Fully Automated Mixed Case Palletizing ACPaQ is a universally applicable solution for fully automated order picking of mixed case pallets based on customers‘ requirements. Its software allows you to customize the palletizing order to increase efficiency during in-store replenishment. The mixed case palletizer...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing