In its recently released TIA 3PL Market Report, the Transportation Intermediaries Association (TIA) noted that, in general, TIA members outperformed the economy. The report, which represented nearly 1.2-million shipments and just under $1.9 billion in total revenue for Q1 2011, found that-- compared to Q1 2010-- total shipments increased 7.4% and total revenue increased 17.1%. Profit margins declined, however, down 2.9% from 15.3% to 14.9%.
“3PLs [third-party logistics providers] continued to grow, expand and change their businesses,” said TIA president & CEO Robert Voltmann. “This is TIA’s tenth quarterly report on the 3PL industry; it is also the most comprehensive report having incorporated a number of new data reporting elements.
“The report indicates that 3PLs expanded their services into intermodal and LTL to meet customer needs,” Voltmann added. “The report indicates that total shipments controlled by 3PLs increased 7.4%, with total revenue increasing 17.1%, while margins continued to be compressed, declining 2.9%.”
The TIA report separates performance by the core services each 3PL offers. Nearly 98% of all revenue was derived from over-the-road truckload (TL), rail intermodal (IM) and less-than-Truckload (LTL) in Q1 2011.
Intermodal and LTL had double the growth in shipment volume of truckload, while LTL was the only service to experience an increase in margin percent.