US 3PL Market 2023-2030

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    US 3PL MARKET

     

    INTRODUCTION

    A 3PL logistics company provides standard and specialized services like inventory management, warehouse management, cross-docking, door-to-door delivery, and packaging and shipping of products. Logistics Industries requires high capital investment to set up a well-defined and structured infrastructure.

     

    As the shipping costs can be very high for a low volume small business, many industries prefer outsourcing logistics services to reduce operational costs and also to increase profitability.

     

    3PL logistics services have been one of the services which help to reduce the operational costs and is the primary cause for the market growth in the US. Outsourcing 3PL services have helped organizations to concentrate more on the technology and core business thus increasing the operational efficiency of industries.

    infographic: US 3PL Market, Third Party Logistics (3PL) Market in US size, US 3PL Market trends and forecast, US 3PL Market risks, US 3PL Market report

     

    And it helps to eliminate unnecessary spending and increase profit percentage. The growth of e-commerce industries will subsequently increase the demand for third party logistics services and the adoption rate will also increase.

     

    Moreover rise in globalization has helped in generating a global network of manufacturing and industrial activities. To maintain it efficiently and effectively it is necessary to use 3PL services and thus will increase demand for 3PL services.

     

    US 3PL MARKET SEGMENTATION

     

    By Industry

    • Technological
    • Automotive
    • Construction
    • Retail
    • E-commerce
    • Food and households
    • Medical and Healthcare
    • Others

     

    US 3PL MARKET TRENDS

    Over the last five years, the logistics industry has undergone a lot of transition with the major companies concentrating more on technology and core competencies. The 3PL logistics industry offers state-of-the-art solutions for accurate shipment tracking and its movement. The improvised technology, world visibility, documentation, and imaging capability will boost the market growth.

     

    Blockchain technology has been introduced in the 3PL logistics market which has been a major cause in the growth of the market. Blockchain technology offers a digital platform which allows logistics industries to access distributed transaction ledger.

     

    infographic: US 3PL Market, Third Party Logistics (3PL) Market in US size, US 3PL Market trends and forecast, US 3PL Market risks, US 3PL Market report

     

    This technology generates identical copies of the transaction ledger that are documented and maintained in distributed computer systems which are managed by stakeholders. This will eliminate the need of central maintaining authority.

     

    The introduction of blockchain technology has resulted in cost benefits which have increased profitability and market growth. 

     

    US 3PL MARKET DYNAMICS RECENT ACQUISITION

     

    In a $40 million purchase, Mullen Group acquired 3PL QuadExpress in the Chicago area, giving one of Canada’s biggest trucking and logistics companies its first U.S.-based company. In contrast to rivals like TFI International, the Alberta-based Mullen Group, which runs transportation, logistics, and oil services businesses from Ontario to British Columbia, has purposefully refrained from U.S. acquisitions.

     

    In contrast to rivals like TFI International, the Alberta-based Mullen Group has purposefully eschewed U.S. acquisitions. The company runs trucking, logistics, and oil services operations from Ontario to British Columbia.

     

    According to a press announcement from the firm, American Eagle will pay $350 million in cash to buy Quiet Logistics as part of an ongoing effort to revamp its supply chain. In addition to providing in-market fulfilment services for other consumer brands, Quiet Logistics will continue to run independently.

     

    The company offers same-day and next-day delivery to clients and stores and has facilities operating in Boston, Chicago, Los Angeles, Dallas, St. Louis, and Jacksonville, Florida. By making acquisitions, American Eagle is gaining that control. After American Eagle bought 3PL AirTerra, they now have Quiet Logistics. Both actions put American Eagle in a position where it can now access logistical know-how.

     

    US 3PL MARKET DYNAMICS

    The U.S. e-commerce recorded at CAGR of 11.8% over the forecast period of 2014-2019.

     

    Air-based logistics services segment market share in 2019 was 40%, Rail and Road services segment market share in 2019 was 25% and Sea-based logistics services segment market share in 2019 was 35%.

     

    infographic: US 3PL Market, Third Party Logistics (3PL) Market in US size, US 3PL Market trends and forecast, US 3PL Market risks, US 3PL Market report

     

    In 2019 US accounted for around 25% of the global third-party logistics market and according to the World Trade Organisation merchandise exports for the U.S increased to USD 1.66 trillion in 2018, from USD 1.54 trillion in 2017.

     

    Dedicated Contract Carriage (DCC) solutions in the 3Pl logistics market in the U.S. was valued at USD 20 billion and it is expected to reach USD 35.5 billion by 2026.

     

    Likewise International Transportation Management (ITM) solutions in U.S were valued at USD 70 billion, Warehousing and Distribution were valued at USD 45.5 billion, and Logistics Software were valued at USD 5 billion in 2019.

     

    US 3PL MARKET COMPETITIVE ANALYSIS

    Some of the major companies that has bulk involvement in the 3PL Logistics market are Hub Group Inc., J.B. Hunt Transport Services Inc., United Parcel Service of America Inc., C.H. Robinson Worldwide Inc., DB Scheneker, KUEHNE+NAGEL Inc., and XPO logistics Inc.

     

    C.H. Robinson declared that it will acquire Prime distribution services. J.B Hunt confirmed the acquisition of RDI Last Mile Co., which will expand the company’s final mile services division to 100 plus locations and with the area of more than 31 lakh sq. feet of warehousing space.

     

    XPO logistics one of the leading contract logistics and 3PL service providers is expected to have incurred a loss of USD 500 million worth of business after Amazon decided to internalize its supply chain functions.

     

    Although with the increasing dependency on various modes of transport will lead to high growth and transport opportunities. This will also eliminate the constraints of transportation of goods and also will help in the expansion of the market globally.

     

    However, there are certain issues like cargo theft, railway theft which the companies have to overcome to have effective growth and efficiency in the market.

     

    To make use of most of the opportunities market, the market vendors have to focus more on the fast-growing segments and stress more on the profitable and stronger sections, while also keeping their hold on the weaker sections or the slow-growing segments.

     

    With the increasing demand from key industries such as technological, automotive, manufacturing, retail, healthcare, and construction is said to create excess opportunities and demand for the warehousing space in the future.

     

    RECENT PARTNERSHIP ACQUISITIONS

     

    In recent years, the third-party logistics (3PL) industry in the United States has experienced significant growth and transformation.

     

    One prominent example is the partnership between XPO Logistics and Home Depot. XPO Logistics acquired the last-mile delivery provider, 3PD Inc., which specialized in heavy goods delivery.

     

    This acquisition enabled XPO Logistics to enhance its capabilities in the e-commerce sector, particularly in delivering large and bulky items to customers’ homes.

     

    The partnership with Home Depot further solidified XPO’s position in the home improvement retail market, as it became Home Depot’s primary provider of last-mile delivery services.

     

    Another significant acquisition took place when Ryder System, a leading 3PL company, partnered with Uber Freight. This collaboration aimed to leverage Uber Freight’s technology platform and vast network of carriers to enhance Ryder’s brokerage capabilities.

     

    By integrating Uber Freight’s digital freight marketplace into its existing operations, Ryder aimed to provide its customers with greater visibility, efficiency, and access to capacity in the truckload freight market.

     

    Furthermore,C.H. Robinson, one of the largest 3PL companies in the US, acquired Prime Distribution Services. Prime Distribution Services was a leading provider of retail consolidation services, specializing in the apparel and footwear industries.

     

    With this acquisition, C.H. Robinson expanded its retail consolidation capabilities, enabling it to offer comprehensive supply chain solutions to its retail customers, including cross-docking, fulfillment, and value-added services.

     

    Additionally, GlobalTranz, a technology-driven 3PL company, made several strategic partnership acquisitions in recent years. GlobalTranz acquired Cerasis, a provider of managed transportation services and technology solutions.

     

    This acquisition allowed GlobalTranz to strengthen its transportation management system (TMS) capabilities and provide a more comprehensive suite of services to its customers.

     

    Moreover, GlobalTranz acquired Global Freight Solutions (GFS), a leading provider of managed freight services and supply chain technology. This partnership expanded GlobalTranz’s network of carriers and enhanced its capabilities in freight brokerage and managed transportation services.

     

    These examples demonstrate the active pursuit of partnership acquisitions by US 3PL companies to enhance their capabilities, expand their service offerings, and tap into new markets. 

     

    NEWS

     

    Yusen Logistics continues M&A spree with US 3PL Taylored Services.The forwarding division of Japanese shipping company NYK Line, Yusen Logistics, has purchased US west coast-based 3PL Taylored Services Parent, following the industry’s trend of consolidation.

     

    With the acquisition, it will be able to enter the US e-commerce sector, and Taylored Services will continue to operate under its current name as a component of Yusen Logistics (Americas), the company’s US business.

     

    It did not reveal the purchase price of Taylored Services from US private equity company Saybrook.The acquisition comprises 11 distribution centres with a combined total of over 2.9 million square feet of Tier 1 distribution space that are close to the ports of Los Angeles, Long Beach, New York/New Jersey, Savannah, and Miami as well as Louisville, Kentucky.

     

    It will be able to offer a comprehensive range of supply chain logistics solutions by combining the strengths of Taylored Services’ fulfilment facilities with Yusen Logistics’ international and local skills.

     

    During the Covid-19 outbreak, logistics bottlenecks and demand for delivery services surged as more people turned to online shopping due to mobility restrictions. This led to consolidation and vertical integration combining 3PLs and liner operators.

     

    Prior to purchasing Taylored Services, Yusen purchased the Thai logistics division of Japanese food processor Ajinomoto Group, AB Logistics, and renamed it Yusen Food Supply Chain (Thailand).

     

    This transaction allowed Yusen to fully enter the Thai food distribution market.To increase its footprint in the transportation of pharmaceutical items, Yusen Logistics purchased Groupe Pierre, a Belgian provider of healthcare logistics.

     

    COMPANIES PROFILED

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2023-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2023-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2023-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2023-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
       
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