3PL Market Leaders Continue Growth
Much of the international growth was due to rising economies in China and the Asian Pacific region. Domestic growth in the United States was slower than last year because of a slowdown in freight movement but still hit record dollar values, said Armstrong & Associates in their “U.S. and Global Third-Party Logistics (3PL) Market Analysis”.
Third-party logistics gross revenues for the United States hit $113.6 billion, a 9.5-percent increase and an historic high. Net revenues were $53.1 billion. Pre-tax margin was 8.6 percent and net income margin in relation to net revenue was 5.4 percent. Margins for the year were down slightly due to the fourth quarter economic slowdown, the report found.
Armstrong & Associates estimates the global 3PL market at $391 billion. European 3PL revenues are estimated at $139 billion.
Net revenue in the United States for international transportation management, including freight forwarding and global supply chain management, increased 17.7 percent. Top players were Kuehne & Nagel, Expeditors International, DHL Worldwide and APL, all with net income margins of 10 percent or greater compared to net revenue.
Net revenue for domestic transportation management, including freight brokerage, rose by 12 percent. Gross revenues were $33.8 billion. Revenue for BAX Global, BNSF Railway, C.H. Robinson, Meridian IQ and NFI grew by more than 20 percent. At Hub Group, Penske Corp., Ryder and Werner Transportation, revenue grew by 10 percent or more. After-tax net margin for domestic transportation management was 11.1 percent, according to the report.
Domestic transportation management net revenue growth slipped from 18 percent in 2005 and net income margin dropped by 1 percent. The researcher attributed the changes to the economic slowdown but said they are only temporary and have no significant long term importance for key players.
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