3PL Market Report

AVAILABLE NOW: Second Quarter 2021 3PL Market Report

The most recent 3PL Market Report reflects that the COVID phenomenon (disease, restrictions, economic stimuli) has kicked off a remarkable economic boom concentrated in the transport-intense sectors of the economy. As a result, we have had an acceleration of demand that no supply chains can keep pace with, not to mention doing it with the handicaps currently affecting most supply chain aspects.

The result is a record capacity crisis that has imposed significant challenges on the brokerage industry. Such volatility in market conditions is especially important for brokers because the spot market they serve is the place where market stresses naturally congregate, reports TIA Chief Economist Noël Perry.

TIA Members have shared in the dramatic growth in transportation during the current economic upturn. This is to be expected for a sector that specializes in volatile market conditions. However, one should note that gross margins have fallen. This is an everyday incident in solid markets as carrier cost increase more rapidly than brokerage costs. In Q221, there is also a mixed effect from a significant increase in LTL shipments, shipments with small invoice amounts.

The report shows that for Q221, the total invoice amount per shipment and total revenue improved by 8.7% and 21%, respectively, while total shipments increased by 11.3% compared to Q121.

"Q221 was a robust quarter for LTL business, a sector that benefits from volatile times, while intermodal has lagged due to rail service problem - with revenue per load reflecting the dramatic increases in trucking volumes and pricing,” said Perry.

3PL Market Report subscribers can now compare the TIA data with the market to ascertain whether brokerage players are gaining or losing vis-a-vis the market. In the Q221 report, subscribers will find that TIA Members are performing well above industry averages.

Want access to the full Q221 3PL Market Report + the next three quarterly reports? Subscribe today and secure your access to the Q221 - Q122 reports!

"We continue to enhance the report with information to help benchmark and understand trends that impact our industry. We thank Noël Perry for his contribution as we have added additional metrics that provide a broader perspective."

Mark Christos
Vice President of Transportation - Matson Logistics
Chair - TIA 3PL Market Report Committee

TIA is the premier organization for third-party logistics professionals in North America and abroad. Membership at TIA adds value to your business and provides resources for growth.
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