3PL Revenues in 2006 Topped $110bn for the First Time, Armstrong & Associates Reports

Gross revenues of third-party logistics providers in the U.S. surpassed $110bn for the first time last year, according to a new report from Armstrong & Associates. The firm pegs U.S. 3PL gross revenues at $113.6bn in 2006, an increase of 9.5 percent over the prior year. Net revenues were $53.1bn. An economic slowdown in the fourth quarter caused a slight reduction in net income margins, to 5.4 percent of net revenue. Some of the biggest net-revenue increases came in the international transportation management (ITM) sector, which saw an improvement rate of 17.7 percent. Companies that showed net-income margins of 10 percent or better, compared to net revenue, included Kuehne & Nagel, Expeditors, DHL Global and APL Logistics. Growth in ITM was primarily driven by continued economic expansion in China and other Asia-Pacific markets, Armstrong said. Domestic transportation management (DTM), including freight brokerage, experienced a 12-percent gain in net revenues. Big performers, with revenue growth of 20 percent or more, included BAX, BNSF, C.H. Robinson, Meridian IQ and NFI. Armstrong & Associates estimates the global 3PL market at $391bn in revenues. The European segment accounts for some $139bn, the firm said.
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