Globalization and Increasing Trade Volume Drives the Third Party Logistics (3PL) Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Third Party Logistics (3PL) markets. World market for Third Party Logistics (3PL) is projected to reach US$1.35 trillion by the year 2018, driven by the increasingly globalized nature of trade that enhances the need for greater freight capacity and effective logistics management. Growing complexity of logistics functions due to increasing trade volume, technological developments, and rising customer demands are fuelling the demand for services of specialist logistics outsourcing providers.

Third Party Logistics (3PL): A Global Strategic Business Report

Follow us on LinkedIn – Third Party Logistics (3PL) companies allow customers to outsource, either completely or partially, their supply chain management operations to external specialists. Outsourcing of logistics operations to 3PL companies is viewed as an effective strategy for companies seeking improvements in service performance as well as for lowering operating costs. Dramatic changes in the business conditions over the years have enhanced the significance of supply chain management and logistics. Globalization, increasing customer demands, resource constraints, and technological innovations are driving companies to adopt measures such as outsourcing of logistics operations to survive in an intensely competitive marketplace.

Growth in the global 3PL market is also attributed to the rising significance of outsourcing in the logistics industry, continuous rise in the global production and trade volume, and resurgence in the worldwide economy. Given the benefits of outsourcing in terms of cost savings and increased operational efficiency, shippers are looking to emulate the success of leading multinationals in expanding global presence, a strategy in which 3PLs have come to play a vital role due to their enormous expertise. 3PL providers, earlier restricted to transportation and warehousing, are now providing comprehensive services and assuming control over the complete strategic supply chain, customer collaboration, IT integration, and supply chain integration. In the coming years, demand for more IT-based services, such as warehouse management systems, transportation management systems, web-enabled communications, and visibility tools, is expected to increase which would in turn require the ability to integrate logistics services with technology.

Third party logistics is a vital constituent of transportation and logistics services industry, sectors that are significantly affected by the ups and downs in the global economy. The market witnessed robust growth until the year 2008, following which the market registered a steep decline owing to adverse economic conditions. In 2009, the global 3PL revenues registered a decline due to negative sentiment in the retail markets and the considerable fall in the overall import and export volume. In 2010, most of the 3PL companies witnessed increased activity, driven by recovering global economy and increased trade volume. While North American third party logistics companies benefited from the improved conditions in 2010, uncertain economic environment in Europe provided challenging conditions for European 3PL players. Though the economy faltered again during H1 2011 owing to concerns over oil supply due to Libyan crisis and the natural calamities in Japan, the subsequent recovery boosted industrial activity offering favorable prospects for the logistics companies.

As stated by the new market research report on Third Party Logistics (3PL), the United States represents the single largest market for 3PL. Factors such as globalization of trade and the increased demand for domestic capacity contributed to the rapid growth of the 3PL market. The promise of substantial cost savings compared to in-house logistics operations and continuous expansion of the freight market bode well for the future of 3PL market. In the US 3PL market, the market for International Transportation Management is expected to register the fastest growth. Domestic Transportation Management (Asset & Non-Asset) represents the largest segment market.

Emerging markets, particularly, China, Brazil, India, and Mexico, are witnessing increased 3PL activity largely due to the sluggish growth in industrialized markets. Growth is attributed to the steady economic growth and rising domestic consumption across emerging markets. Favorable government policies and increasing investment in infrastructure development activities are driving growth in the logistics industry, and enhancing the significance of contract logistics service providers. Within Asia, China represents the largest and fastest growing market for third party logistics.

Global 3PL market is characterized by intense competition due to the rising demand for outsourced logistics services and the continuous influx of newer market participants. Competition is also influenced by factors such as quality of service and ability to offer novel solutions. Major players profiled in the report include Caterpillar Logistics Services Inc., C.H. Robinson Worldwide Inc., Ceva Logistics U.S. Holdings Inc., DB Schenker, DHL International GmbH, Exel, DSV A/S, Expeditors International of Washington Inc., GENCO ATC, Hyundai Glovis Co. Ltd., Kühne + Nagel International AG, Landstar System Inc., Nippon Express Co. Ltd., Norbert Dentressangle Group, Panalpina World Transport (Holding) Ltd., UPS Supply Chain Solutions Inc., and UTi Worldwide Inc.

The research report titled "Third Party Logistics (3PL): A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections across geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, and Rest of Europe), Asia Pacific (Australia, China, India, South Korea, and Rest of Asia-Pacific), Latin America (Brazil, Mexico and Rest of Latin America), and Rest of World.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Third_Party_Logistics_3PL_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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