Logistics Management - June 2010

Special Report: Top 50 Global 3PLs
A SPECIAL SUPPLEMENT TO LOGISTICS MANAGEMENT
Armstrong & Associates Top 30 Domestic 3PLs - May 2010
Rank Provider
2009 Gross
Revenue
(USD Millions)*
1 C.H. Robinson Worldwide, Inc. 7,577
2 UPS Supply Chain Solutions 7,516
3 DHL Supply Chain/Exel 5,187
4 Expeditors International of Washington, Inc. 4,092
5 UTi Worldwide Inc. 3,568
6 DB Schenker Americas 3,170
7 Caterpillar Logistics Services, Inc. 3,119
8 Kuehne + Nagel, Inc. (The Americas) 2,921
9 Penske Logistics 2,387
10 GENCO Supply Chain Solutions 2,310
11 CEVA Logistics (The Americas) 2,235
12 Ryder System, Inc. 1,611
13 Hub Group, Inc. 1,511
14 FedEx Supply Chain Services/FedEx Trade Networks 1,503
15 Menlo Worldwide Logistics 1,326
16 BDP International 1,220
17 VersaCold Logistics Services 1,180
18 OHL 991
19 Transplace 990
20 APL Logistics 976
21 Werner Enterprises Dedicated & Logistics 878
22 Landstar Global Logistics, Inc. 824
23 NFI 810
24 Greatwide Logistics Services, LLC 781
25 Americold Logistics, Inc. 761
26 J.B. Hunt Dedicated Contract Services® 757
27 syncreon 750
28 Phoenix International Freight Services, Ltd. 733
29 Ruan Transport Corporation 680
30 Jacobson Companies 628
*Revenues are company reported or Armstrong & Associates, Inc. estimates and have been converted to USD
using the average 2009 exchange rate in order to make non-currency related growth comparisons.
O’Reilly, “when 93 percent of 3PLs and
90 percent of manufacturers/retailers
reported that they were experiencing the
economic slowdown.”
Although this year’s results were more
positive than last year’s, they remain
markedly more negative than the results
from 2008 when only 43 percent of 3PLs
and 41 percent of manufacturers/retailers
were affected by the recession.
3PL respondents were also asked
if they are seeing an increase in “near
sourcing” by their customers. In the
last three years, the most common
response has been that respondents
have seen a slight increase (43 percent
in 2010; 55 percent in 2009; and 69
percent in 2008). The second most
common response has been that
respondents have seen no increase (33
percent in 2010; 30 percent in 2009;
and 17 percent in 2008), while the least
popular response has been that respondents
have seen a significant increase
(23 percent in 2010; 15 percent in 2009;
and 14 percent in 2008).
While the levels of responses have
been broadly similar over the last three
years, there has been a notable polarization
each year, with fewer people seeing
a slight increase, and a larger number
seeing either no increase or a significant
increase. According to O’Reilly, this
trend was more apparent in the 2010
results compared with those of 2009.
But it’s worth noting that a certain
contradiction is contained in the section
of the report where 3PL respondents
were also asked to identify the
regions in which they see the greatest
“On the one hand, the fallout
from the recession continues
to rock all industries. Yet on the
other hand, the green shoots of
recovery and the opportunity to
gain new market share…has
opened up sections that were
previously closed due to the
relative stability.”
–Katharine O’Reilly, Eyefortransport
revenue growth opportunities for their
companies. The result: North America,
the say, is absolutely critical.
“While results from the 2008 and
2009 surveys were markedly similar
in this area of questioning, the results
from this year’s survey were dramatically
different,” says O’Reilly.
Indeed, the majority of 3PL respondents
(72 percent) saw their greatest
opportunities being in North America,
whereas only 8 percent and 6 percent
selected this region in 2009 and 2008
respectively. A similar number in 2010
(47 percent) saw China as the most
promising region, as compared to 2009
(51 percent) and 2008 (61 percent).
The Asia-Pacific region (not China or
India) also showed similarity in results
between 2010 (36 percent), 2009 (31
percent), and 2008 (32 percent).
Be reasonable
Other pressures may drive strategic
change too, says Richard Armstrong,
who believes that the supply chain may
52S June 2010 • Logistics Management