3PL market report indicates strong sector performance
August 25, 2014
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.
Subscribe to Logistics Management magazine
entire logistics operation. Start your FREE subscription today!