Fresh news from the 3PL market
Armstrong & Associates (A&A’s) has published its newest report on 3PL in 2020. According to the analysis, the pandemic showed that "3PL prevailed as an essential industry". The winner of all 3PL segments for revenue growth in 2020 was International Transportation Management (ITM), which offers air and ocean freight forwarding, customs brokerage and complementary value-added services.
In total, ITM generated a 19.2% revenue gain in 2020 expanding to USD 70 billion. Net revenue went up by 11.4% to USD 24.6 billion. The asset-heavy dedicated contract carriage (DCC) 3PL segment increased its revenue by just 0.3% to USD 20 billion, while gross revenue declined by 2%.
In 2020, 3PLs generally had problems to find carrier capacity to meet shipper demand. Global third-party logistics (3PL) market revenues therefore reached USD 962 billion in 2020, moving sidewards with +0.1% in comparison to 2019. In contrast, the USA's 3PL market saw an 8.8% increase in 2020 compared to the previous year.
The report is titled “Seeking Zen: A Post-Pandemic 3PL Market – Latest Third-Party Logistics Market Results and Predictions for 2021 Including Estimates for 190 Countries”. (sh)