TIA’s 3PL report shows revenue increases

July 12, 2011
The Transportation Intermediaries Association (TIA) has released the 1st Quarter 2011: TIA 3PL Market Report, and the results show that, in general, TIA members outperformed the economy. Comprised of data drawn from five categories of members based on revenue, the report represented nearly 1.2 million shipments and just under $1.9 billion in total revenue for Q1 2011.

The Transportation Intermediaries Association (TIA) has released the 1st Quarter 2011: TIA 3PL Market Report, and the results show that, in general, TIA members outperformed the economy. Comprised of data drawn from five categories of members based on revenue, the report represented nearly 1.2 million shipments and just under $1.9 billion in total revenue for Q1 2011. Comparing Q1 2011 with Q1 2010:

•Total shipments increased 7.4%.

•Total revenue rose 17.1%.

•Profit margin percent declined 2.9% from 15.3% to 14.9%.

The TIA 3PL Market 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.

“3PLs continued to grow, expand, and change their businesses,” said Robert Voltmann, TIA president and chief executive officer. “This is TIA’s 10th 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,” he said. “Total shipments controlled by 3PLs increased 7.4%, with total revenue increasing 17.1%, while margins continued to be compressed, declining 2.9%.”

The 22-page report further examines additional metrics such as revenue and margin per shipment changes and the most recent four-quarter trends. It details the reasons for volume, revenue, and margin changes. Although TL profit margin was down in Q1 2011 versus Q1 2010, profit margin was up compared with the last three quarters of 2011.

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