Global Transportation Leads 3PL Growth

Of the $89.4 billion U.S. companies spent for third party logistics services in 2004, $31.5 billion was for international transportation management, says a report by Armstrong & Associates Inc., reflecting the significant growth that has occurred in global product movements. Tight vessel, airfreight and truck capacities allowed for significant price increases, the report continued. Net revenues and income also trended upward.

Leaders in international transportation management included Expeditors International, UTi, DHL Danzas and Kuehne + Nagel, all with over $1 billion in U.S. turnover.

Domestic transportation management accounted for $25 billion, up 16.8% in 2004. Leaders in this segment included C.H. Robinson, Landstar and Schneider Logistics.

Dedicated contract carriage reached a new high, according to Armstrong, at $8.7 billion. Tight trucking capacity helped the dedicated segment. Top companies included Cardinal Logistics, NFI, Penske and Werner, which each had increases of over 20%.

Value-added warehousing and distribution, the final segment covered by the report, showed a 7% increase in 2004, reaching $21.2 billion.

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