Global third-party logistics provider annual revenues reached $802 billion in 2016, and are on track to exceed $962 billion by 2020, the consulting firm said in its latest 3PL market trends report.
Consulting firm Armstrong & Associates says 2016 was a “mediocre” year for the third-party logistics industry.
While large merger and acquisition deals changed the 3PL market from mid-2014 through 2015, the pace slackened significantly in 2016, Armstrong & Associates said in its latest report, “Third-Party Logistics Market Results and Trends for 2017 Including Estimates for 190 countries.”
However, 2016 acquisitions included FedEx’s acquisition of TNT Express, DSV’s acquisition of UTi Worldwide, and HNA Group’s purchase of Ingram Micro.
The top global freight forwarders for ocean TEU transport in 2016 included Kuehne + Nagel (4.05 million TEUs), DHL Supply Chain & Global Forwarding (3.06 million TEUs), Sinotrans (2.95 million TEUs), DB Schenker (2 million TEUs) and Panalpina (1.49 million TEUs).
Meanwhile, the top global value-added warehousing and distribution 3PLs in 2016 by warehouse space included DHL Supply Chain & Global Forwarding (248 million square feet), Amazon.com, if it was counted as a 3PL (159.9 million square feet), XPO Logistics (157.5 million square feet), Nippon Express (97.1 million square feet), and CEVA Logistics (86.1 million square feet).
Although developing economies in Africa, the Middle East and South America have experienced growth, Asia Pacific logistics costs comprise almost 40 percent of the total, with Europe at 20 percent and North America at 23 percent. China and the United States have the largest logistics spends, according to the report.
And while global 3PL revenues reached $802 billion in 2016, looking ahead, they are on track to exceed $962 billion in 2020, Armstrong & Associates said.
Armstrong & Associates: 2016 a ‘mediocre’ year for 3PL market
