3PL Market Witnesses Further Decline in the Q4 2015

The third-party logistics (3PLs) market encompassing non-asset-based transportation, warehousing, and integrated supply chain services experienced a further decline in revenues in the fourth quarter of 2015. (As ARC has observed, the market has been declining over the past few quarters.) This decline was primarily due to the volatile nature of the market and the continued strengthening of the dollar. The contract logistics market segment recorded the highest growth in the quarter relative to the non-asset-based domestic transportation and non-asset-based international transportation services 3PL categories. As a whole, contract logistics suppliers exhibited a year-on-year (YOY) growth rate of 0.5 percent during Q4 and -1.0 percent during the FY.

The 3PL market witnessed major consolidation during the FY 2015. There were nearly 19 companies featured on the list when ARC Advisory Group began reporting the revenues of major 3PLs couple of years ago. However, for Q4, only 15 companies made it to this Insight because of the following acquisitions:

•    Menlo Logistics, a Division of Con-way, by XPO Logistics

•    UTi by DSV

•    Norbert Dentressangle by XPO Logistics    

•    Toll Holdings by Japan Post

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Keywords: 3PLs (Third-Party Logistics), Contract Logistics, Non-Asset-Based Domestic, Non-Asset-Based International, Freight Forwarding, ARC Advisory Group.