Subscribe to our free, weekly email newsletter!


2011 Q4Q Winners: 3PL


August 01, 2011


Source: Logistics Management, Peerless Media Research Group

Back on the rise
According to our reporting over the past eight months, the third-party logistics (3PL) industry is surging again after seeing flat growth in the heart of the Great Recession.

However, those closest to the 3PL market agree that this growth trend could reach a plateau in the coming years due to a number of looming economic uncertainties, not the least of which is the price of oil—which could, in fact, send global trade numbers tumbling and increase domestic and cross-border moves.

But, for the time being, the 3PL market is enjoying a resurgence. According to Armstrong & Associates’ most recent market analysis, revenues and profitability increased over the course of 2010 in all four of 3PL segments it covers. Gross revenue increases ranged from 12.9 percent to 30.1 percent and were up 19.4 percent overall from 2009, while overall net income increased 23.4 percent in 2010 over 2009 levels.

In fact, Armstrong analysts say that 2009 was the only negative growth year since the firm began tracking the results in 1995. While the latest numbers are very encouraging, the market needs to keep in mind that 2009 was a bad a year for just about every player in logistics and transportation services.

Improved global trade has certainly had a lot to do with the improved numbers, yet market analysts also contend that domestic and cross-border activity is a key driver to current 3PL growth—and could become an even bigger part of the 3PL services market as more U.S.-based multinationals consider shifting sourcing strategies closer to home.

And while shippers are considering new global and domestic networks, we can be sure that the 3PLs making the grade on our list below will most certainly be part of the strategy. This year, the readers of Logistics Management have voted 16 3PLs into the 2011 Quest for Quality winners’ circle.

Leading our list of providers this year is first-time winner Network Global Logistics with an impressive weighted average of 45.19. Network also took top spot in four of the five attribute categories, scoring 8.94 in Carrier Selection/ Negotiation, 9.72 in Order Fulfillment, 9.31 in Transportation/Distribution, and 8.48 in Inventory Management. C.H. Robinson posted a 8.82 in Information Systems to lead the pack in this increasingly important category.

It’s interesting to note that only six out of this year’s 16 are repeat winners from our 2010 results. Making the cut after missing last year are Network Global, C.H. Robinson, Yusen Logistics (41.78), Expeditors (40.67), DHL Solutions (39.80), Landstar (39.56), Menlo Worldwide (39.30), Kuehne + Nagel Logistics (38.78), YRC (38.18), and CEVA Logistics (37.28).

Repeating this year are second best weighted average scorer Transplace (34.21), FedEx Supply Chain Services (42.08), APL Logistics (40.75), Unyson Logistics (39.86), Exel (37.34), and Ryder Supply Chain Solutions (36.71). This year marks the third year in a row for Ryder, FedEx, and Exel.


2011 Quest for Quality Winners Categories

NATIONAL LTL | REGIONAL LTL | TRUCKLOAD | RAIL/INTERMODAL
OCEAN CARRIERS | 3PL | AIR CARRIERS | FREIGHT FORWARDERS


home page

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Department of Commerce reported that January retail sales were up 0.2 percent compared to December and up 3.7 percent annually at $449.9 billion, and the NRF reported that January retail sales, which exclude automobiles, gas stations, and restaurants, rose 0.6 percent over December and 1.4 percent compared to January 2015.

On the freight shipments side, Cass reported that January shipments––at 1.025––trailed December by 1.3 percent and January 2016 by 0.2 percent. These declines were less than the 4.9 percent drop from November to December, though, and January shipments still topped the 1.0 mark for the 65th straight month in December.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) saw a 0.4 percent decline from November to December, its second straight decline on the heels of a 1.0 percent decrease from October to November.

Carloads saw a 11.7 percent annual decline at 241,680, and intermodal containers and trailers rose 10.5 percent to 262,830

An amendment to the International Maritime Organization’s Safety of Life at Sea convention will go into effect requiring all shippers (importers and exporters) to certify and submit the Verified Gross Mass – the combined weight of the cargo and the container – to the steamship line and terminal operator in advance of loading the container aboard a vessel.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA