2013 Top 50 Global & Domestic Third-Party Logistics Providers

Finding the right third-party logistics provider (3PL) always involves considerable due diligence - it may also mean leaving an existing partner for a set of collaborators that can deliver on the promise of a seamless global network. By Patrick Burnson

June 18, 2014

Leading industry analysts and consultants maintain that the landscape for global and domestic 3PLs may be shifting this year, but shippers can hedge their bets by vetting asset-based and non-asset players when planning future networks.

A healthy service provider portfolio, say our analysts, includes a bit of both.

In fact, this year’s list of Top 50 Global 3PLs, compiled by market consultancy Armstrong & Associates, validates the observation that shippers need a variety of options when it comes to moving freight this year.

“Shippers would prefer to work with a few providers, but the performance scale of operations often requires them to hire several 3PLs in order to optimize global procurement,” says Evan Armstrong, the consultancy’s president. “In the domestic arena, it’s more centralized.”

On the domestic front, both Coyote Logistics and XPO Logistics have broken the $2 billion revenue barrier through acquisition, creating two “mega” freight brokers to rival 3PL domestic transportation management (DTM) market segment leader C.H. Robinson Worldwide.

“With other major competitors such as Total Quality Logisticsand Echo Global Logistics growing rapidly as well, this intense competition will continue to heat up,” says Armstrong. “In the end, it will mean increased operational performance levels for shippers and further consolidation within the small freight broker ranks.”

Armstrong & Associates Top 50 Global 3PLs

2013 Gross Logistics Revenue (USD Millions)*
Third-Party Logistics Provider

$31,432
DHL Supply Chain & Global Forwarding

$22,587
Kuehne + Nagel

$19,732
DB Schenker Logistics

$17,317
Nippon Express

$12,752
C.H. Robinson Worldwide

$8,517
CEVA Logistics

$8,140
DSV

$7,738
Sinotrans

$7,293
Panalpina

$7,263
SDV (Bolloré Group)

$6,627
DACHSER

$6,266
Toll Holdings

$6,080
Expeditors International of Washington

$5,828
Geodis

$5,492
UPS Supply Chain Solutions

$5,300
GEFCO

$5,224
J.B. Hunt (JBI, DCS & ICS)

$4,441
UTi Worldwide

$4,415
Agility

$4,042
Yusen Logistics

$3,923
IMPERIAL Logistics

$3,433
Hellmann Worldwide Logistics

$3,374
Unyson Logistic

$3,212
Damco

$3,119
Burris Logistics

$2,850
Schneider Logistics & Dedicated

$2,782
Norbert Dentressangle

$2,718
Kintetsu World Express

$2,575
Kerry Logistics

$2,546
Pantos Logistics

$2,293
Sankyu

$2,280
Ryder Supply Chain Solutions

$2,090
FIEGE Group

$2,000
Coyote Logistics**

$2,000
XPO Logistics**

$1,900
BDP International

$1,745
NNR Global Logistics

$1,695
Wincanton

$1,621
Total Quality Logistics

$1,611
Logwin

$1,555
Nissin Corporation/Nissin Group

$1,586
APL Logistics

$1,580
Americold

$1,540
Menlo Worldwide Logistics

$1,509
GENCO

$1,470
BLG Logistics Group

$1,400
Transplace

$1,387
FedEx Supply Chain/FedEx Trade Networks

$1,301
Landstar

$1,290
OHL

*Revenues are company reported or Armstrong & Associates, Inc. estimates and have been converted to USD using the average exchange rate in order to make non-currency related growth comparisons. **34 & 35 Tied.

While the 3.5 percent year-over-year U.S. 3PL market growth in 2013 was sluggish, mirroring the overall economy, DTM led all 3PL market segments again in 2013, according to Armstrong’s research. Gross revenues were up, as was the cost of purchasing transportation capacity. However, the ongoing driver shortage continues to pressure DTM gross margins and net revenue growth.

“International transportation management (ITM) saw another slow-growth year. Expeditors International, Kuehne + Nagel, and Panalpina all had year-over-year revenue gains of 2.9 percent or less,” Armstrong observes. He also notes that more focus in Asia has been on building reliable regional value-added warehousing and distribution (VAWD) networks versus export activity.

“This has benefited Kerry Logistics and Toll Holdings who have significant operating networks in China and Southeast Asia,” says Armstrong. “As a sign of this shift, Kerry Logistics, the leading VAWD 3PL in Greater China, was spun off from its parent Kerry Properties Limited via an initial public offering in December 2013.”