Statistics For 3rd Party Logistics Companies

overview of US logistics companies

The lack of logistics experts with experience further limits the growth of this market. Similarly, the current infrastructure condition in developed countries, including China is insufficient to meet the demand for advanced logistics services. The ground infrastructure fails to meet uss express review efficient connection with the logistic hub, which prevents the establishment of advanced intermodal logistics operations. In addition, majority of the industry operation is controlled/governed by the Ministry of Transportation, National Development and Reform Commission, and others.

overview of US logistics companies

Thus, recent innovations in 3PLs technologies and systems to ease the overall operation will lead to a global market growth rate in the forecast period. Last mile logistics refers to the final step of the delivery process from a distribution center or facility to the end-user. With continuously increasing proliferation of e-commerce companies, the provision of efficient last mile deliveries is witnessing a major upswing in the logistics industry. In addition, getting a package within reviews the same day of delivery is almost common in the present day, resulting in the growth of the last mile delivery services. Moreover, rising pharmaceuticals and food & beverages e-commerce industries are also witnessing greater emphasis on last mile delivery options across logistics industries. Furthermore, continuous effort of logistics companies to offer efficient last mile deliveries is another opportunity that is expected to fuel the logistics market growth in near future.

Why Is Logistics Important To Your Company?

Moreover, continuous development in e-commerce will surge the demand for logistics services in areas such as express delivery & inventory management. The demand for 3PL service providers will significantly rise in tier 3 to 5 cities where demand for logistics services has increased. Furthermore, China’s Belt and Road Initiative is also expected to invest heavily in the logistics services infrastructure, especially in the railway system between Europe and China. The agreement and infrastructure development will drive more trade activities, eventually driving the demand for third party logistics definition services in the future. At Ascent, we solve supply chain challenges for thousands of customers worldwide.

  • You can have more control over your freight with our proprietary, in-house transportation management system, Go Truck Hub.
  • Resources that are managed in logistics can include tangible items such as liquids, equipment, materials, food products; and intangible goods such as information.
  • Startups and SMBs have disrupted the conventional logistics methodology with the new cutting-edge business models & logistics focused technology products and services.
  • To be successful within the USA transportation and logistics industry, it takes a tremendous amount of skilled workforce.
  • Shipper demand, vendor innovation and advances in technology have worked together to get the vision of the digital supply chain over the finish line.

Long-standing relationships developed by 3PL’s can pose an advantage when shipping capacity is tight. When it comes to your own company, it’s not about choosing between a 3PL or a freight broker. Shippers establish relationships with 3PL companies and freight brokerages in the interest of reducing shipping costs.

How Does A Logistics Company Work?

Shippers looking for involvement with a collaborative transportation network will find that a 3PL fits their needs. However, there is a role for freight brokers in relation to shippers with already established 3PL relationships. If a shipper requires greater flexibility in their shipping needs, they may add a brokerage firm to supplement their shipping needs.

Every sector of the economy has faced a slew of era-defining technological shifts, but none have felt the disruptive power of technology than the transportation industry. The ongoing evolution in areas like machine learning, artificial intelligence, and immersive technologies has led the innovations in multiple aspects of transportation. For example, the Hermes Group plan to invest up to $580 million in building and expanding high technology logistics centers, ParcelShop, and good warehouses. The rail transportation industry in the US accounts for total revenue of $80 billion. However, the COVID-19 pandemic had a severe impact on the global freight forwarding market. The transportation and warehousing market size in the US in 2019 will be $1.3 trillion.

Interesting Statista Reports

A logistics company with the largest network can advise you on the best shipping methods for your goods and secure the best rates, keeping your operating costs to a minimum. ACT Fulfillment has grown rapidly, with growth between 20% and 25% each year for the first seven years since the company was founded in 1994. In 2013, the company had expanded to more than one million square feet, with plans to expand to a third facility. Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by North America, Europe, and LAMEA.

Attention! Coronavirus Epidemic Impact On Regional & Global Logistics

Logistics management focuses on the efficiency and effective management of daily activities concerning the production of the company’s finished goods and services. This type of management forms a part of the supply chain management; and plans, implements, & controls the efficient, effective forward, reverse flow, and storage of goods. On the other hand, the top three challenges faced by providers of third-party logistics services worldwide in 2020 were finding/retaining customers (67%), supply chain disruption (63%), and technology investments (60%).

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