3PL market report indicates strong sector performance
Middlemen comprising the Transportation Intermediaries Association made money last quarter, say researchers.
Events in the News2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity Armstrong “3PL Value Creation Chicago Summit” puts spotlight on compliance and security An industry at a cross-roads Improve OTIF Performance with Real-Time Visibility for Shippers Masters of Logistics: Transportation @ digital speed More Events News
Events ResourceImprove OTIF Performance with Real-Time Visibility for Shippers Due to rising consumer demand, retailers are imposing stricter on-time in full (OTIF) standards on their suppliers and carriers.
Middlemen comprising the Transportation Intermediaries Association (TIA), made money last quarter, say researchers.
In its recently-released paper – 2nd Quarter 2014: TIA 3PL Market Report – TIA members’ revenue increased.
“Activity increased across all measurements compared to last quarter,” noted report author Mark Christos. “Total shipments, total revenue, invoice amount per shipment, and gross profit margin percent increased by almost 8%, 12.6%, 4.4% and 60 Basis Points respectively. DOE fuel cost per gallon decreased modestly by 0.4% in the period.
The report relies on data drawn from three categories of members based on revenue; the report represented over 1.53 million shipments and over $2.95 billion in total revenue for Q2 2014.
The TIA 3PL Market Report separates performance by the core services each 3PL offers. Nearly 98% of all revenue was derived from over-the-road truckload (TL), rail intermodal (IM) and Less-than-Truckload (LTL).
“3PLs continued to grow, expand, and change their businesses,” said TIA President & CEO Robert Voltmann. “This is TIA’s 23rd quarterly report on the 3PL industry. The report indicates that 3PLs continue to expand their services. The percent of 3PLs offering intermodal and LTL continues to increase each quarter and 100% of all 3PLs report activity in TL.” Voltmann said.
More details of the report will be share with shippers when the Intermodal Association of North America (IANA) stages its annual Expo in September.
The 21-page report has over 30 charts and data tables that further examine additional metrics of each mode. Additionally, the report contains rolling six quarter trends, fuel price comparisons, and provides any 3PL to see how the overall industry is performing as well as the ability to compare to companies within their peer group based on size.
The publication is based on a monthly survey of TIA members who submit real operating data, and answer questions on business conditions affecting the 3PL industry.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
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!
34th Annual Quest for Quality Awards: 2017 Awards Dinner Trucking Regulations: Washington U-Turns; States put hammer down View More From this Issue