3PL services market: overview of trends by sector
The global 3PL services market is growing, according to the TIA Reports Show. This is a positive sign for the industry, which has experienced a significant slowdown over the past two years.
In the second quarter of 2024, analysts recorded a positive trend in the market for the first time in eight quarters. The picture for the 3PL sector during this period was as follows:
- shipments grew by 5% quarter-on-quarter;
- year-on-year growth was 3.5%;
- the sector’s total revenue increased by 5.6%;
- total shipment revenue also increased by 0.6%;
- the gross profit margin decreased by 0.1%, which is a minor fluctuation for the industry.
Analysts note good growth trends in shipments and revenues. This indicates an increase in demand for services and improved operator efficiency.
TIA director Ann Reinke noted signs of strengthening in the sector. According to her, the market has started to move, indicating an increase in service demand. And Reinke believes the revival points to future sustainable growth and a change in the cycle.
Overview of the freight transport segment
The second quarter of 2024 was a period of increased activity in the freight transport sector. All operators experienced growth, but in different directions:
- total freight volumes increased for smaller companies;
- medium and large companies saw an increase in service invoices and higher overall gross margins.
This result was achieved through improved business processes. Companies optimised their costs, resulting in improved operational efficiency. Demand for 3PL services, observed in almost all regions, also contributed.
Situation in the LTL sector
As for LTL, the second quarter brought mixed results for this segment. On the one hand, the total volume of shipments increased. At the same time, the number of invoices and gross profitability fell, although the decline was small. Only large enterprises recorded an increase in profitability over the period. The figures for the other operators remained virtually unchanged during the quarter.
Intermodal transport trends
This sector demonstrated growth in a number of areas:
- The traffic volume increased by 9.5%;
- freight invoicing increased by more than 1% compared to the first quarter of 2002.
However, it is worth noting that intermodal transport is still in a rather precarious position. This is reflected in the level of load billings. Despite an increase compared to the previous quarter, it is still 22% lower than a year ago. The sector has not yet recovered, but analysts are seeing the first signs of growth.
In general, analysts see good prospects for the 3PL market. It continues to grow, driven by increased demand for services.
