Report Overview

United States Third Party Logistics Market – Industry Trends & Forecast Report, 2028

United States Third Party Logistics Market size was estimated to reach a value of USD 226.7 billion in 2021. The market size is also expected to reach USD 362.8 billion by 2028, recording its growth at a CAGR of 6.9% during the forecast period (2018–2028). The significant growth in United States Third Party Logistics Market is expected to be driven by the well-established international network of manufacturing operations, and an increasing need for third-party logistic (3PL) services due its efficient maintenance. In addition, the range of 3PL services will broaden further during the period in analysis, as supply chain productivity advantages in terms of cost and dependability can be obtained with the aid of managerial and IT know-how offered by 3PL enterprises. The expansion of United States Third Party Logistics Market is also to be fueled by the growth of the e-commerce sector and increasing reverse logistic activities.

Third-Party Logistics - Overview

A manufacturer uses the 3PL function to outsource logistics and distribution-related tasks. A 3PL business can offer specialized services including product packing, cross-docking, inventory management, and door-to-door delivery. The rise of the e-commerce sector is expected to lead to a significant increase in the market for 3PL services. The demand for 3PL services is also projected to rise shortly, because of manufacturers and merchants concentrating more on their core strengths and outsourcing less specialized tasks, such as logistics. Due to increased rivalry, manufacturers are now promoting their various production and distribution expertise by focusing on their core areas.

United States Third Party Logistics Market Forecast and Trends

Growth Drivers

Globalization-related Growth in Trading Activities

The two main forces propelling globalization are the dynamism of the market and the expansion of the world economy, including the United States. Due to the growth of globalization, various trade-related activities have been seen to increase. As it is difficult for manufacturers or merchants to effectively monitor these operations, 3PL businesses assist these manufacturers in doing so. This factor is expected to propel the United States Third Party Logistics Market growth. Additionally, the expansion of the U market is a key factor supporting the development of the 3PL sector. Customers, who are price-conscious and in a need for a greater selection of high-quality products with prompt delivery, are increasingly dependent on 3PL services. Hence, globalization induced increased trading activities promote the expansion of United States Third Party Logistics Market.

Expanding E-Commerce Industry

During Covid-19 pandemic, the E-commerce industry experienced significant changes in various locations. Customers' expectations regarding timely delivery have shifted. Customers choose same-day and next-day delivery options. As a result, several shops began to provide logistic services to match client expectations. Furthermore, the continued growth of e-commerce is expected to increase demand for logistic services, such as quick delivery and inventory management. In tier 3 and 5 cities where the demand for logistic services is high, the growth of 3PL service providers’ businesses will be accelerated. Furthermore, increased urbanization, deeper penetration of internet and smartphones, increasing number of warehouses, and expansion of the logistics industry are expected to fuel the growth of United States Third Party Logistics Market during the forecast period.

Manufacturers and Retailers’ Increasing Emphasis on Core Capabilities

In United States, there has been an increasing focus of manufacturers and merchants on their core businesses and subcontracting out tasks, such as logistics, where they lack expertise. Here, promoting specialized production and distribution is the main objective. By balancing the needs of various client shippers throughout the transportation and distribution operations, 3PL organizations can make greater use of transportation assets and achieve economies of scale. Supply chains get longer and more complex because of outsourcing and offshoring. Manufacturers find it incredibly challenging to manage this kind of supply chain, thus demand for 3PL service providers is forecast to rise in the period in analysis. The 3PL model offers improved asset utilization and asset sharing partnerships, which are driving demand 3PL services and United States Third Party Logistics Market.

Restraints

Risk to Manufacturers’ Reputation

One of the most important operations of manufacturing companies, including order fulfillment and management of customs and distribution, is managed by 3PL service providers. The manufacturers’ reputation and relationship with customers are likely to suffer because of 3PL service providers’ errors. When a 3PL service provider is unable to fulfill an order on schedule, the manufacturing company's reputation suffers, which lowers consumer confidence in the brand. Consequently, this could limit the expansion of United States Third Party Logistics Market.

United States Third Party Logistics Market - By Service

Based on the service, United States Third Party Logistics Market is segmented into Warehousing, International Transportation, Domestic Transportation, Inventory Management, and Others. Among these, domestic transportation accounts for the highest share in United States Third Party Logistics Market. The administration of domestic transportation involves the flow of goods between states in the same country. Businesses are also actively working to expand their reach in the local market. For instance, Yusen Logistics, a US-based logistics company, sold its domestic and international business to Transplace Inc. in October 2018. Transplace expects to benefit from an expanded domestic transportation industry, because of this acquisition.

United States Third Party Logistics Market – By Transport Mode

Based on transport mode, the United States Third Party Logistics Market is segmented into Airways, Railways, Roadways, and Waterways. Among these, the roadways segment holds the highest market share. Due to improved road infrastructure and an increase in cross-border trade between the country's landlocked regions, the necessity for roadways as a means of transportation in 3PL market has been seen to rise significantly. In addition, 3PL service providers use cutting-edge IT tools, such as WMS and transport management systems (TMS) to provide first-party businesses with creative delivery solutions. All these factors are expected boost the growth of United States Third Party Logistics Market during the forecast period.

United States Third Party Logistics Market - By End User

Based on end user, the United States Third Party Logistics Market is segmented into Automotive, Healthcare, Retail, Consumer Goods, and Others. The retail segment currently holds the highest market share and is expected to continue to be in the leadership position among end users during the forecast period. The retail industry involves the procurement of materials and other components from various resources located across the country. The involvement of several suppliers and distributors makes logistics a time-consuming task. As a result of the benefits offered in terms of lower transportation costs, supply chain visibility, inventory and vendor management, business process improvement, and improved customer services, the industrial sector is outsourcing logistical retail activities.

Competitive Landscape

Leading players in United States Third Party Logistics Market include A.N. Deringer Inc, AmeriCold Logistics, LLC, BDP International, Inc., Burris Logistics, C.H. Robinson, CEVAlogistics, CITI Solutions, DHLInternational GmbH, FedEx Corporation, Kuehne + Nagel Inc., Nippon Express Co. Ltd, PANTOS Co. Ltd, Schneider National, Inc., XPO Logistics, Yusen Logistics Co. Ltd., UPS, and JB Hunt.

The United States Third Party Logistics Market is highly fragmented with the presence of several companies in the country. The market leaders retain their supremacy by spending on research and development activities, incorporating cutting-edge technologies into their goods and services, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Developments

• In June 2022, AmeriCold opened its new facility with 181,000 square feet of cold storage and operations space in Dunkirk, New York. The facility has 25,000 pallet positions.

• In August 2022, FedEx Office, a subsidiary of FedEx Corp., collaborated with Ford Pro for its pilot project of utilizing 10 Ford E-Transit vans across its FedEx SameDay City network.

Scope of the Report

By Service

• • Warehousing

  • International Transportation

  • Domestic Transportation

  • Inventory Management

  • Others

By Transport Mode

• • Airways

  • Railways

  • Roadways

  • Waterways

By End User

• • Automotive

  • Healthcare

  • Retail

  • Consumer Goods

  • Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. United States Third Party Logistics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Technological Advancement/Recent Development
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. United States Third Party Logistics Market Overview
   1. Market Size & Forecast by Value, 2018-2028
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Service
         1. Warehousing
         2. International Transportation
         3. Domestic Transportation
         4. Inventory Management
         5. Others
      2. By Transport Mode
         1. Airways
         2. Railways
         3. Roadways
         4. Waterways
      3. By End User
         1. Automotive
         2. Healthcare
         3. Retail
         4. Consumer Goods
         5. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Covid-19 on United States Third Party Logistics Market
8. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) **
   1. A.N. Deringer Inc
   2. AmeriCold Logistics, LLC
   3. BDP International, Inc.
   4. Burris Logistics
   5. C.H. Robinson
   6. CEVA Logistics
   7. CITI Solutions
   8. DHL International GmbH
   9. FedEx Corporation
   10. Kuehne + Nagel Inc.
   11. Nippon Express Co. Ltd
   12. PANTOS Co. Ltd
   13. Schneider National, Inc.
   14. XPO Logistics
   15. Yusen Logistics Co. Ltd.
   16. UPS
   17. JB Hunt
   18. Other prominent players

9. Key Strategic Recommendations

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable

List of Figures

Figure 1        United States Third Party Logistics Market Segmentation

Figure 2        United States Third Party Logistics Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        United States Third Party Logistics Market Size, By Value, 2018-2028 (USD Billion)

Figure 5        United States Third Party Logistics Market Share, By Service, By Value, 2018-2028

Figure 6        United States Third Party Logistics Market Share, By Transport Mode, By Value, 2018-2028

Figure 7        United States Third Party Logistics Market Share, By End User, By Value, 2018-2028

List of Tables

Table 1         United States Third Party Logistics Market Size, By Service, By Value, 2018-2028 (USD Billion)

Table 2         United States Third Party Logistics Market Size, By Transport Mode, By Value, 2018-2028 (USD Billion)

Table 3         United States Third Party Logistics Market Size, By End User, By Value, 2018-2028 (USD Billion)

Table 4         A.N. Deringer Inc Company Overview

Table 5         A.N. Deringer Inc Financial Overview

Table 6         AmeriCold Logistics, LLC Company Overview

Table 7         AmeriCold Logistics, LLC Financial Overview

Table 8         BDP International, Inc. Company Overview

Table 9         BDP International, Inc. Financial Overview

Table 10        Burris Logistics Company Overview

Table 11        Burris Logistics Financial Overview

Table 12        C.H. Robinson Company Overview

Table 13        C.H. Robinson Financial Overview

Table 14        CEVA Logistics Company Overview

Table 15        CEVA Logistics Financial Overview

Table 16        CITI Solutions Company Overview

Table 17        CITI Solutions Financial Overview

Table 18        DHL International GmbH Company Overview

Table 19        DHL International GmbH Financial Overview

Table 20        FedEx Corporation Company Overview

Table 21        FedEx Corporation Financial Overview

Table 22        Kuehne + Nagel Inc. Company Overview

Table 23        Kuehne + Nagel Inc. Financial Overview

Table 24        Nippon Express Co. Ltd Company Overview

Table 25        Nippon Express Co. Ltd Financial Overview

Table 26        PANTOS Co. Ltd Company Overview

Table 27        PANTOS Co. Ltd Financial Overview

Table 28        Schneider National, Inc. Company Overview

Table 29        Schneider National, Inc. Financial Overview

Table 30        XPO Logistics Company Overview

Table 31        XPO Logistics Financial Overview

Table 32        Yusen Logistics Co. Ltd. Company Overview

Table 33        Yusen Logistics Co. Ltd. Financial Overview

Table 34        UPS Company Overview

Table 35        UPS Financial Overview

Table 36        JB Hunt Company Overview

Table 37        JB Hunt Financial Overview