3PLs Show Healthy Growth through Second Quarter 2014

The 3PL market – defined here as non-asset based transportation, warehousing, and integrated supply chain services, has shown healthy growth in the second quarter of 2014.  The growth increased due to strong performance in the Americas and increased volumes.

The scope of coverage includes non-asset based transportation and warehousing services (referred to as “contract logistics” in Europe):

  • Non-asset based domestic transportation services (brokerage and managed transportation services)
  • Non-asset based international transportation services (freight for-warding and customs services)
  • Warehousing services (warehousing and associated services such as packaging, light assembly, sequencing goods for a factory line)

The half year revenues across the public firms covered in this analysis has increased by 4.0 percent year over year, second quarter revenues are up by 6.4 percent.  High flyers, 3PLs with double digit growth year over year in half year revenues include:

  • DSV, up 11.1 percent
  • Hyandai GLOVIS, up 14.5 percent
  • JBHunt, up 20.3 percent
  • Norbert Dentressangle, up 26.5 percent
  • Sinotrans, up 11.2 percent

Remember, based on our definition of 3PL we are excluding asset-based transportation revenues from JBHunt and Norbert Dentressangle.

The warehousing services business did the best, up 8.9 percent in the quarter and 7.2 percent half year, YTD.  International transportation services did the worst, year over year half year revenues were up 1.9 percent and second quarter revenues increased by 4.8 percent.  Domestic transportation services were up in the second quarter by 7.5 percent and for the half year by 5.8 percent.

If you would like a complete copy of this analysis, including the results of the 19 3PLs covered, send me an email at nsingh@arcweb.com

Neelam Singh is an analyst working for ARC Advisory Group covering supply chain management from Asia.

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