Third-Party Logistics (3PL) Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Service Type (International Transportation Management, Domestic Transportation Management, Warehousing And Distribution, Packaging Service), By Mode Of Transportation (Air Freight, Ocean Freight, Land Freight), And By Geography - Forecasts From 2023 To 2028

Third-Party Logistics (3PL) Market will witness robust growth over the forecast period. Third-party logistics providers typically specialize in integrated operation, and warehouse transportation services which can be scaled and customized to customer's 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, and 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 chain transparency and efficiency while also helping in potentially reducing 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 with 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.  

Changes 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 of the rules and regulations of different countries is difficult to understand and maintain. Therefore, 3PL service providers due to their global network use 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 among others.

Segmentation

The third-party logistics market has been analyzed through the following segments:

• By Service Type

• International Transportation Management
• Domestic Transportation Management
• Warehousing and Distribution
• Packaging Service

• By Mode of Transportation

• Air Freight
• Ocean Freight
• Land Freight

• By Geography

• North America

• US
• Canada
• Mexico
• Others

• South America

• Brazil
• Argentina
• Chile
• Colombia
• Others

• Europe

• Germany
• France
• United Kingdom
• Spain
• Netherlands
• Russia
• Others

• Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• Others

• Middle East and Africa

• Iran
• Israel
• Saudi Arabia
• United Arab Emirates
• South Africa
• Others