Alexandria, VA – June 28, 2011 - The Transportation Intermediaries Association (TIA) has released the 1st Quarter 2011: TIA 3PL Market Report and the results show that, in general, TIA members outperformed the economy. The report, comprised of data drawn from five categories of members based on revenue, represented nearly 1.2 million shipments and just under $1.9 billion in total revenue for Q1 2011. Comparing Q1 2011 to Q1 2010:
- Total shipments increased 7.4%
- Total revenue increased 17.1%
- Profit margin percent declined 2.9% from 15.3% to 14.9%
The TIA 3PL Market Reportseparates performance by the core services each 3PL offers. Nearly 98% of all revenue was derived from over-the-road truckload (TL), rail intermodal (IM) and Less-than-Truckload (LTL) in Q1 2011. The table below compares the performance of the 3 modes. Intermodal and LTL had double the growth in shipment volume of truckload, while LTL was the only service to experience an increase in margin percent.
Mode Summary Q111 vs. Q110
|Revenue per Shipment||10.3%||4.9%||6.7%|
|Profit Margin Percent||-1.9%||1.5%||-1.4%|
“3PLs continued to grow, expand, and change their businesses,” said TIA President & CEO Robert Voltmann. “This is TIA’s 10thquarterly report on the 3PL industry, it is also the most comprehensive report having incorporated a number of new data reporting elements,” Voltmann added.
“The report indicates that 3PLs expanded their services into intermodal and LTL to meet customer needs,” Voltmann said. “The report indicates that total shipments controlled by 3PLs increased 7.4%, with total revenue increasing 17.1%, while margins continued to be compressed, declining 2.9%,” Voltmann added.
The 22 page report further examines additional metrics like revenue and margin per shipment changes and the most recent 4 quarter trends. It details the reasons for volume, revenue and margin changes. Although TL profit margin was down in Q1 2011 compared to Q1 2010, profit margin was up compared to the last 3 quarters of 2011.
The publication is based on a monthly survey of TIA members who submit real operating data, and answer questions on business conditions affecting the 3PL industry. TIA’s efforts are providing a truly comprehensive report on the trends and practices of the 3PL industry.
The Transportation Intermediaries Association (TIA) is the professional organization of the $162 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 transportation intermediaries to shippers, carriers, government officials and international organizations. TIA is the United States member of the International Federation of Freight Forwarder Associations, FIATA.