Wednesday, May 25, 2011
Gross revenue for US third-party logistics (3PL) service providers is expected to be $141.2 billion in 2011, a 10 percent increase from 2010, according to estimates released by Armstrong & Associates. 3PL U.S. gross revenues jumped 18.9% in 2010 to $127.3 billion slightly exceeding the 2008 market result.
Net revenue from 1995 through 2010 averaged annual increases of 12.7% – with 2009 the only negative growth year since the company began tracking the 3PL industry in 1995. From 2009 to 2010, the increase in 3PL net revenue was 4.7 times the rate of U.S. gross domestic product (GDP) growth. One driving factor of 3PL growth was world trade volumes which increased 12.4% for 2010.
Consistent with ongoing economic globalization, the international transportation management 3PL segment led with a 30.1% gross revenue and net revenue increases. Dedicated contract carriage followed at 13.1%.
Revenues and profitability increased in all four 3PL segments in 2010. Gross revenue increases ranged from 12.9% to 30.1% and were up 19.4% overall. Net revenues were up 13.2%. Net revenues are a better indicator of true business improvement since fuel related costs have minimal impact. Overall, net income increased 23.4% from 2009 levels.
The complete report and other Armstrong & Associates research can be found at: http://www.3plogistics.com/shopsite/index.html.
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