Third-Party Market Analysis Released

Source: Armstong & Associates, Inc. (research firm)

Introduction of press release, "U.S. and Global Third-Party Logistics Market Analysis Is Released":

"2009 wasn't a pretty year for third-party logistics (3PL) providers. In lock step with the global economic nose dive, domestic revenues for the 3PL market sank. Hardest hit was the International Transportation Management (ITM) segment with gross revenue (turnover) falling 23.7% as total U.S. import and export ocean TEUs (trailer equivalent units) dropped 12.3% (1). Airfreight metric tons dropped similarly with reductions at JFK and the Chicago airports exceeding 20%. As prices dove in the face of soft demand, net revenues (gross margins) shrank by 18.9%. Expeditors International, the largest U.S. freight forwarder, saw gross revenue decrease 27% and net revenue decrease 14%. The good news is that first quarter 2010 results have included double digit improvements in ITM and other 3PL market segments as the economy steadily recovers.

Overall, U.S. 3PL market gross revenues decreased 16% in 2009 dropping to $107.1 billion. Dedicated Contract Carriage (DCC) fell 16%. Domestic Transportation Management (DTM) was down 15.1% in gross revenue and 11.4% in net revenue. Value-Added Warehousing and Distribution (VAWD) suffered with only single digit reductions."

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