Declining Oil Prices and Currency Fluctuations Constrain Growth for 3PLs in Second Quarter 2015

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ARC Report Abstract

The 3PL market -- defined here as non-asset based transportation, warehousing, and integrated supply chain services -- witnessed a decline in the second quarter of 2015. The growth was hampered mainly due to currency fluctuations and decreasing oil prices. The overall market suffered an 8.2 percent decline. The worst hit was the non-asset based international transportation services market with a decline of 10.2 percent.

Categories of 3PLs

The scope of coverage includes non-asset based transportation, and warehousing services (called contract logistics in Europe):

  • Non-asset based domestic transportation services (broker-age/domestic freight forwarding and managed transportation services)
  • Non-asset based international transportation services (freight for-warding, customs services)
  • Warehousing services (warehousing and associated services such as packaging, light assembly, sequencing goods for a factory line)

 

Out of scope for this report are revenues from asset-based transportation moves (truckload, less than truckload, parcel/express, rail, ocean, air, etc.). The analysis is based on revenues reported by public companies on a quarterly basis that break out their revenues in the segments mentioned above. If asset-based moves and non-asset based moves are reported in the same category, but more than half of revenues come from asset-based moves, then they are excluded. If asset-based moves and non-asset based moves are reported in the same category but more than half of revenues come from non-asset based moves, then we have included them.

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

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