Subscribe to our free, weekly email newsletter!


3PL market report indicates strong sector performance

By Patrick Burnson, Executive Editor
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.

About the Author

image
Patrick 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 .(JavaScript must be enabled to view this email address).


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

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

News · 3PL · Intermodal · Transportation · IANA · TIA · All topics

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA