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Top 50 3PLs

Buoyed by the growth of the US domestic transportation management, the revenue of the 50 largest logistics companies increased 10.3 percent to $253 billion in 2017, according to Pittsburgh-based reseach and consulting firm SJ Consultng — good for a 10.2 percent growth rate. Further given the streghening global economy in late 2017/early 2018, analysts expect 2018 to be another year of substantial growth.

Buzz word / key phrase for 2018: "Adapt or else." 

Beyond that, the buzz words / key phrase for the sector is, “Adapt or else.” Consulting firm and anayst Armstrong & Associates noted that the rapid expansion of e-commerce will continue in 2018, as will the focus on supply chain visibility. Also, complete, integrated services are becoming paramount fo 3PLs, which are working to establish visibility in into all locations. “Simultaneously, from the customer side there’s is a need to be timely. They are placing much more emphasis on proper timing,” Armstrong said, as is integrating all services so that customers have one contact person. That’s the future, Armstrong noted.

 

Special Coverage

A warehouse.
In 2017, the strengthening global economy increased business volumes and freight rates — boosting Top 50 third-party logistics providers’ revenue, while fueling niche mergers and acquisitions.

News & Analysis

Chennai Port DP World terminal.
13 Jul 2018
In a trade advisory, the port trust announced substantial tariff reductions for domestic and foreign ocean carriers handling export-import containers for transshipment.
Refrigerated containers on a ship.
06 Jul 2018
With supply and demand in more of a balance, sector analysts say shippers should expect higher reefer rates.
Trucks travel on a highway in Germany.
02 Jul 2018
A shrinking supply of qualified truck drivers, combined with above-trend European GDP growth, is pushing the continent's truck rates higher, and analysts had words to the wise for shippers for the year ahead.
An Amazon center in Nevada, United States.
30 Jun 2018
Amazon’s new network could help reduce shipper costs, and even aid other transportation providers, as volumes outstrip capacity. But as one might sense, Amazon’s latest play also will affect resources in an already beyond-tight US trucking sector.
Jawaharlal Nehru Port Trust.
29 Jun 2018
Industry leaders generally agree that the Goods and Service Tax has tapered the cascading effect of multiple central and state levies on supply chains — and that has resulted in substantial cost and productivity benefits.
A Nippon Express train.
28 Jun 2018
Nippon is expanding cross-border services as Asia-Europe demand increases and as five Mekong subregion countries adopt an agreement that could serve as a trade model for other regions.

Commentary

If there wasn’t an urgency to unfreeze the North American Free Trade Agreement negotiations and secure an agreement, the prospect of major damage to a sector and a recession in a key, developed economy certainly creates it.