Third-party logistics providers typically specialize in integrated operation, warehouse transportation services which can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Often, these services go beyond logistics and include value-added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain.
The mode of transportation is an important point of consideration when planning the shipment process. Besides the costs, the urgency of the shipment, the value of the goods being shipped as well as the size and weight of the goods being shipped need to be evaluated when determining the form of transportation. Shipping & sea freight, Aviation, Rail are some of the forms of freight transportation.
As businesses grow bigger, the world is getting smaller. Globalization is the result of the rapid expansion of companies worldwide, technological consolidation in the infrastructure of companies, rapid increase of different products, and cost pressures in logistics. Digitization is making in-roads in freight forwarding and helps in improving supply chains transparency and efficiency while also helping in potentially reducing the costs. Many logistics companies have adopted this technology in recent times. For instance, DHL invented CILLOX, its own digital transporter search and quote service for shipments to simplify its freight forwarding process. Warehousing and distribution are some of the prime services included under the service spectrum of the 3PL industry. Additionally, E-commerce has been very successful in providing freight companies and customers new options that fuel the growth of its economy. It has influenced the success of every transportation business, and it still continues to lead as the driver of growth in the industry.
Change in the prices of crude oil negatively affect the cost of the shipment and therefore, affect the freight market inversely. The biggest component of money required to run a ship (taken as shipment) is spent on bunker fuel. Moreover, awareness about rules and regulations of different countries is difficult to understand and maintain. Therefore, 3PL service providers due to their global network use to have more awareness about policies and regulations which increases efficiency.
Key industry players profiled as part of this section are United Parcel Service, FedEx Corporation, DHL, McLane Company, Deutsche Post, and Union Pacific with a few others.
Third-Party Logistics market has been analyzed through the following segments:
By Service Type
International Transportation Management
Domestic Transportation Management
Warehousing and Distribution
By Mode of Transportation
Middle East and Africa
United Arab Emirates
Key insights offered
What will be the third-party logistics market size from 2018 to 2023?
How are the major drivers and restraints affecting the third-party logistics market growth and the opportunities?
Which region will drive or lead the market growth and why?
Key strategies are being adopted by e-commerce companies with in-depth analysis along with their impact on competition and market growth.
United Parcel Service
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