Global transportation leads 3PL growth

The U.S. third-party logistics (3PL) market grew 16.3% in 2004, led by international transportation management, which rose 34%, according to market research and consulting firm Armstrong & Associates Inc. (www.3plogistics.com).

Of the $89.4 billion U.S. companies spent for 3PL services in 2004, $31.5 billion was for international transportation management, reflecting the significant growth that has occurred in global product movements. Tight vessel, airfreight and truck capacities allowed for significant price increases, Armstrong reports. Net revenues and income also trended upward.

Leaders in international transportation management last year included Expeditors International of Washington, UTi Worldwide Inc., 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 Worldwide Inc., Landstar System Inc. 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 showed a 7% increase in 2004, reaching $21.2 billion.

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