The third-party logistics (3PL) market, defined here as non-asset based transportation, warehousing, and integrated supply chain services, declined significantly in third quarter 2015. This was largely due to the soft market environment in both air and ocean freight, plus significant currency translation effects due to the strength of the USD. The 3PL market also witnessed some major acquisitions during the quarter.
- Menlo Logistics, a Division of Con-way was acquired By XPO Logistics
- UTi acquired by DSV
Some other relevant acquisitions during the nine months into FY15 were:
- Norbert Dentressangle acquired by XPO Logistics (April 2015)
- Coyote Logistics acquired by UPS (July 2015)
- ReTrans acquired by K+N (June 2015)
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)
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Keywords: 3PL (Third-Party Logistics), Contract Logistics, Non-Asset Based Domestic, and Non-Asset based International, Freight Forwarding, ARC Advisory Group.