TIA Releases 3PL Market Report with Leading Economic Commentary
Media Contact: Rachael Oury
|Alexandria, VA (May 23, 2019) – Transportation Intermediaries Association (TIA) released their Q1 2019 TIA 3PL Market Report. This is the first Market Report that will include an analysis from TIA’s Chief Economist, Noël Perry.
“Noël’s commentary offers valuable insight to TIA members as they navigate a volatile market,” said TIA President and CEO Robert Voltmann. “And, the Market Report shows that the market is indeed volatile,” Voltmann added.
The quarter-over-quarter comparisons at the beginning of the report shows the current direction of the market, downward in both volumes and price, multiplies in the revenue numbers.
According to Perry, “The market is in decline. The TIA statistics are completely consistent this quarter with a market receding from a cyclical peak, the most recent being the spectacular combination of regulatory drag and strong tonnage growth that topped out in the first half of 2019.”
“It behooves our members to be prudent with cash flow based on these numbers, as further declines are likely both in the remainder of this year and through much of 2020, ” said Perry in response to the downward moves in the Q1 Report.
The report contains rolling eight-quarter trends, fuel price comparisons, and allows 3PLs and industry observers to view how the industry is performing as well as to compare their business to companies of a similar size. Additionally, the report includes detailed 3PL activities by transportation mode and measures comparative volume, revenue, margin and margin percentages, quarterly and year over year.
The publication is based on a monthly data submissions and surveys of TIA members who provide current operating data, and answer questions on business conditions affecting the 3PL industry.
“Many members are reporting revenue down, but due to technology investments and the difference between spot and contract rates, their net revenue is up despite what looks like a downturn,” said Voltmann.
TIA serves to help 3PL industry professionals navigate the ups and downs with rapid changes in technology. In 2018, TIA introduced the event 3PL Technovations giving technology innovators the platform to share their latest data and products. 2019 3PL Technovations will take place November 12-13 in Amelia Island, FL.
The 2019 Q1 3PL Market Report is available for purchase on the TIA website, tianet.org.
The Transportation Intermediaries Association (TIA) is the professional organization of the $186 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines, doing business in domestic and international commerce. TIA is the voice of the 3PL industry to shippers, carriers, government officials and international organizations. TIA is the United States member of the International Federation of Freight Forwarder Associations, FIATA.