Third-Party Logistics in the US · Third-Party Logistics in the US March 2019 2 Third-party...

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IBISWorld Industry Report OD5504Third-Party Logistics in the USMarch 2019 Dan Cook

Order shipped: Industry demand will rise in line with increased freight volumes

2 About this Industry2 Industry Definition

2 Main Activities

2 Similar Industries

3 Additional Resources

4 Industry at a Glance

5 Industry Performance5 Executive Summary

5 Key External Drivers

7 Current Performance

9 Industry Outlook

11 Industry Life Cycle

13 Products & Markets13 Supply Chain

13 Products & Services

14 Demand Determinants

15 Major Markets

15 International Trade

16 Business Locations

18 Competitive Landscape18 Market Share Concentration

18 Key Success Factors

18 Cost Structure Benchmarks

20 Basis of Competition

21 Barriers to Entry

21 Industry Globalization

22 Major Companies22 CH Robinson Worldwide Inc.

23 Deutsche Post DHL Group

23 UPS Supply Chain Solutions Inc.

25 Operating Conditions25 Capital Intensity

26 Technology & Systems

26 Revenue Volatility

27 Regulation & Policy

27 Industry Assistance

28 Key Statistics28 Industry Data

28 Annual Change

28 Key Ratios

29 Jargon & Glossary

www.ibisworld.com | 1-800-330-3772 | [email protected]

This report was provided toAutobahn Consultants (2134210691)by IBISWorld on 27 October 2019 in accordance with their license agreement with IBISWorld


Third-party logistics (3PL) companies provide outsourced logistics services to clients. Operators typically provide integrated supply chain solutions which include, but are not limited to, warehousing, forwarding, packing,

consulting, brokerage and transportation documentation. In particular, 3PL providers will tailor and incorporate their services into their customer’s supply chain based on the client’s needs. All revenue in this report is gross revenue.

The primary activities of this industry are

Logistic consulting

Transportation management

Forwarding

Packing

Freight brokerage

Warehousing

Dedicated contract carriage

48851 Freight Forwarding Brokerages & Agencies in the USThis industry provides forwarding and brokerage services for shippers.

48899 Freight Packing & Logistics Services in the USThis industry provides packing and crating services for the transportation sector, including consolidating packages.

49311 Public Storage & Warehousing in the USThis industry provides storage warehousing and storage services to the manufacturing, wholesale and retail sectors.

49319 Specialized Storage & Warehousing in the USThis industry operates warehousing and storage facilities (except general merchandise, refrigerated and farm product warehousing and storage).

49222 Couriers & Local Delivery Services in the USThis industry provides delivery services. Couriers offer delivery services between urban centers, while local messengers work exclusively within a single urban area.

Industry Definition

Main Activities

Similar Industries

About this Industry

The major products and services in this industry are

Transportation management

Warehousing and related services

Other services

Provided to: Autobahn Consultants (2134210691) | 27 October 2019


About this Industry

For additional information on this industry

www.transportation.gov Department of Transportation

www.joc.com JOC.com

www.mhia.org Material Handling Industry of America

Additional Resources

IBISWorld writes over 1000 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com



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Revenue vs. employment growth

Products and services segmentation (2019)

72.3%Transportation management

21.8%Warehousing and related services

5.9%Other services

Key Statistics Snapshot

Industry at a GlanceThird-Party Logistics in 2019

Industry Structure Life Cycle Stage Mature

Revenue Volatility Low

Capital Intensity Low

Industry Assistance Low

Concentration Level Low

Regulation Level Light

Technology Change Medium

Barriers to Entry Medium

Industry Globalization High

Competition Level High

Revenue

$194.2bnProfit

$14.4bnWages

$25.0bnBusinesses

14,550

Annual Growth 19–24

3.6%Annual Growth 14–19

3.0%

Key External DriversConsumer spendingFreight transportation services indexTotal trade valueIndustrial production indexE-commerce sales

Market ShareCH Robinson Worldwide Inc. 6.7%

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FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 28




Key External Drivers Consumer spendingWhen spending increases, the volume of purchased goods also climbs. When consumer spending increases, companies, such as retailers, require 3PL services such as order fulfillment and warehousing. Consumer spending is expected to increase in 2019.

Freight transportation services indexThe freight transportation services index measures the annual output of the US transportation sector. When the economy

grows and consumer spending increases, industrial, retail and trade activity levels rise. As a result, demand for goods transportation, including industry services, increases. The freight transportation services index is expected to increase in 2019, although its slower rate of growth represents a potential threat to the industry.

Total trade valueCompanies in the industry provide services for imported and exported

Executive Summary

The Third-Party Logistics (3PL) industry has grown steadily over the five years to 2019, in line with overall demand. Industry players provide outsourced logistics services, including warehousing, forwarding, packing, consulting, order fulfillment, brokerage and transportation documentation. 3PL operators also offer to integrate and customize their services for customers. As the US economy and various global macroeconomic factors, such as consumer spending, industrial output and trade, improved freight

volumes increased and demand for logistics services rose as a result. In particular, the increasingly complex global supply chain has encouraged shippers to outsource to 3PL providers, which has led to rising industry demand. Therefore, over the five years to 2019, industry revenue is expected to rise at an annualized rate of 3.0% to $194.2 billion, including a 2.7% jump in 2019 alone.

Despite increasing demand, industry profit margins have remained slim over the past five years, as 3PL providers

operate in a highly competitive market. Due to these circumstances, many companies have looked to merge with or acquire competitors, which enabled players to achieve economies of scale, expand into growing supply chain markets, such as healthcare, and offer more comprehensive logistics services. Mergers and acquisitions have also enabled companies to expand global operations to satisfy demand from multinational corporate clients. Conversely, smaller industry companies, which comprise the majority of operators, often focus on niche markets or offer more in-depth services.

Over the five years to 2024, industry revenue is anticipated to climb at an annualized rate of 3.6% to $232.1 billion. Growth in consumer spending, industrial production and trade are expected to continue to drive freight volumes, which will generate rising demand for logistics services offered by 3PL operators. Moreover, the global supply chain is likely to become more integrated and complex moving forward, encouraging broad downstream markets to outsource logistics to this industry. In particular, the continued growth of e-commerce is anticipated to result in higher industry demand, due to its complex, on-demand nature.

Industry PerformanceExecutive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage

Despite increasing demand, industry profit remained pressured over the past five years



Industry Performance

Key External Driverscontinued

goods. As a result, an increase in total trade value leads to greater industry demand. Total trade value is expected to increase in 2019, representing a potential opportunity for the industry.

Industrial production indexThe industrial production index measures output from the mining, manufacturing, electric and gas industries. These industries’ products are shipped throughout the United States and to countries abroad, thus requiring

industry services. The industrial production index is expected to increase in 2019.

E-commerce salesE-commerce sales measure the value of online retail sales in the United States. Rising online sales bolster demand for industry services because goods bought online are typically smaller and shipped more frequently, which creates demand for industry solutions. E-commerce sales are expected to increase in 2019.

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Demand expands 3PL providers rely heavily on freight volumes as a determinant of performance; when volumes increase, the potential market for logistics outsourcing rises as demand for transportation services grows. As the US economy has expanded during the period, unemployment has declined and consumer income levels rose. Consequently, consumer spending is expected to increase at an annualized rate of 2.9% to $13.2 trillion over the five years to 2019. Increases in spending have resulted in retail sales, which ultimately increased industrial output as manufacturers have sold and replaced inventory more frequently. The industrial production index, which measures US industrial output, is expected to grow at an annualized rate of 1.1% during the five-year period to 2019. Furthermore, US and global economic growth also drove trade values upward during the period, as the total trade value in the US is projected to increase at an annualized rate of 3.2% over the five years to 2019. As a result of rising retail, industrial and trade activity, more goods had to be transported, causing the

freight transportation services index, which is a measure of transportation output, to climb at an annualized rate of 2.6% during the period. With freight volumes growing, demand for services provided by 3PL operators rose.

Rising freight volumes alone do not fully explain the industry’s expansion since freight volumes tend to be relatively volatile. The overall proliferation of logistics outsourcing has driven a significant portion of industry performance as well. As the global supply chain has expanded and become more complex, in-house transportation operations have struggled to keep up and adapt. Therefore, retailers, manufacturers and other shippers have often aimed to outsource their logistics operations to specialists that were more up-to-date with the latest technologies. The more complex and global the supply chain has become, the more transportation operations have been outsourced, with shippers looking for customized, integrated solutions from outsourcing providers such as 3PL companies. According to the 2019 Third-

Current Performance

The Third-Party Logistics (3PL) industry has expanded at a steady pace over the five years to 2019. Industry players provide outsourced logistics services such as warehousing, forwarding, packing, consulting, order fulfillment, brokerage and transportation documentation. These services are often customized for the client and integrated into their operations accordingly. The US and global economies have experienced positive conditions during the current period, as consumer spending, trade and industrial output all climbed. As a result, freight volumes have increased, intensifying demand for freight transportation and logistics services. Ultimately, over the five years to 2019, industry revenue is expected to

rise at an annualized rate of 3.0% to $194.2 billion, including a 2.7% increase in 2019 alone.

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Party Logistics Study: The State of Logistics Outsourcing, about 53.0% of total logistics expenditure is directed toward outsourcing, which is increased from an estimated 50.0% in 2017. Furthermore, an estimated 34.0% of warehouse operations spending is managed by third parties.

In particular, the continued surge in the popularity of e-commerce has been a key demand factor for the industry. Over the five years to 2019, e-commerce sales are

expected to increase at an annualized rate of 13.7%, which has resulted in growing demand for third-party logistics. As more products are sold online, the volume and frequency of small packages increases. In addition, online retailers’ business models are based on limiting their physical locations, including logistic centers, which means these companies are much more likely to rely on outsourced logistics services.

Demand expands continued

Competition and internal dynamics

While the overall market for 3PL services has continued to expand over the five years to 2019, internal industry competition has intensified. During the same period, fuel prices have displayed high levels of volatility. As a result, the average industry profit margin, measured as earnings before interest and taxes, is actually expected to decline over next the five years, expecting to account for 7.4% of revenue in 2019. In general, the industry mostly consists of small- to medium-sized companies that provide a small range of outsourcing services. Nonetheless, the industry also includes large operators that offer a full range of logistics services, from forwarding to warehousing on a national or global scale. As the global supply chain becomes more complex, clients have demanded more comprehensive, integrated supply-chain solutions from 3PL operators, providing an advantage to larger companies. Moreover, bigger operators have been able to leverage their size to achieve economies of scale to improve price competitiveness and offer worldwide services. To compete, smaller companies have had to either provide more in-depth services or specialize in niche markets. In addition, companies have had to provide value-added services to prevent reliance on low-margin, commoditized, transaction-based

activities. Transaction-based services are typically short-term and do not go beyond a single transaction. Therefore, clients can pick and choose 3PL providers at will, creating heightened competition. Conversely, if a 3PL company can integrate its operations into a client’s supply-chain network and offer additional services, such as forwarding, the transaction can transition into a long-term relationship. This reduces competition and increases margins.

Industry operators have amplified merger and acquisition activity to expand their logistics service offerings and serve large, multination clients. Nonetheless, increasing demand for 3PL services has encouraged new players to enter the industry. Consequently, the number of industry enterprises is anticipated to climb at an annualized rate of 3.2% to 14,550 companies over the five years to 2019. Additionally, industry employment is expected to rise at an annualized rate of 4.0% to 425,096 people during the same period as operators aim to expand their own capacity and deal with expanding demand.

Industry operators have amplified merger and acquisition activity




Persistent demand conditions

Over the five years to 2024, the US economy is anticipated to continue expanding at a steady pace. As a result, consumer incomes should improve, leading to more spending. During the five-year period to 2024, consumer spending is projected to climb at an annualized rate of 1.7% to $14.4 trillion. The steady increase in spending is expected to generate higher retail sales. Combined with rising manufacturing output, higher retail sales are projected to lead to larger freight volumes. Consequently, retailers, manufacturers and those in between will demand more logistics services such as forwarding, brokerage and warehousing. In addition, with the total trade value in the United States in the anticipated to expand an annualized 3.4% over the five years to 2024, demand for international 3PL services is also forecast to rise. The heightened pace of trade will be particularly important for the industry because cross-border transactions are typically more complex and riskier, creating demand for operators’ expertise.

In general, as the global supply chain becomes more complicated over the next five years, demand for logistical

outsourcing will rise. Large multinational corporations are increasingly becoming reliant on 3PL companies that provide transportation services to simplify and manage supply chains that stretch across national borders. This is even applicable to small domestic retailers or manufacturers, which are increasingly reliant on 3PL services to help sell and source goods in international markets.

Increasing e-commerce activity will also continue to bolster demand for industry services. Over the five years to 2024, e-commerce sales are forecast to increase at an annualized rate of 8.0% to reach $833.0 billion. Similar to the five-year period to 2019, e-commerce is anticipated to increase demand for 3PL services because of the high volume of small packages being shipped and online companies’ business model that includes limiting their physical locations.

Industry Outlook

The Third-Party Logistics (3PL) industry is expected to steadily expand over the five years to 2024. As the US and global economies expand, freight volumes will do the same, feeding demand for logistics services. Moreover, shippers are anticipated to shift more of their transportation requirements onto 3PL providers as they try to simplify their supply chain operations and focus on

their core business while experiencing rising e-commerce values and generally slim profit margins in the logistics sector. Despite positive conditions that stimulate growth, industry companies will continue to operate in a highly competitive environment. Overall, industry revenue is projected to climb at an annualized rate of 3.6% to $232.1 billion over the five years to 2024.

Retailers, manufacturers and those in between will demand more logistics services such as forwarding




Challenges and internal dynamics

While demand for industry services is expected to rise, challenges for the industry are likely to remain, as players will continue to operate in a highly competitive environment. Moreover, various operating costs are also anticipated to rise. For instance, fuel prices are forecast to increase as the price of oil climbs, which will raise the share of revenue that industry operators allocate to purchases and highlight the importance of fuel surcharges for profitability. In addition, overall transportation costs are anticipated to rise, increasing the cost for arrangement, which includes the purchase of transportation services that are required to deliver a client’s goods. Over the five years to 2019, industry players have benefited from overcapacity in the global airfreight and cargo ship markets, which reduced freight transport prices. Over the next five years, overcapacity is anticipated to decline, increasing freight prices. As a result of increasing costs and competition, industry profit, measured as

earnings before interest and taxes, is forecast to remain relatively stagnant, edging from 7.4% of revenue in 2019 to 7.6% in 2024.

The need to remain competitive by expanding the scope of operations or entering into specialized markets will encourage further mergers and acquisitions. Despite a growing market, the number of industry enterprises is projected to climb at an annualized rate of 2.6% to 16,582 companies over the five years to 2024. Employment is expected to expand faster, with the number of industry employees anticipated to increase at an annualized rate of 3.4% to 502,621 people during the same period.

Industry players have benefited from overcapacity in the global airfreight and cargo ship markets



Industry PerformanceIVA is expected to grow roughly in line with GDP

The markets the industry serves have hardly changed

Some new technology has been introduced, increasing operational efficiency

Life Cycle Stage




Industry Life Cycle The Third-Party Logistics (3PL) industry is in the mature phase of its life cycle. Over the 10 years to 2024, industry value added (IVA), defined as the industry’s contribution to the overall economy, is forecast to grow at an annualized rate of 3.0%, while GDP grows at an annualized rate of 2.1% during the same period. While IVA growing faster than GDP may be indicative of a growth phase increased outsourcing of logistics and strong demand for international services has bolstered this industry’s IVA growth. For instance, rapid economic growth in emerging markets increased demand for the industry’ trade-related services.

Nonetheless, because the industry acts as a middleman in the transportation of goods, demand for industry services grows in line with the overall economy. Macroeconomic variables such as consumer spending, industrial production

and trade all influence the volume of goods transported domestically and internationally. Consequently, when all of these factors rise, so does demand for industry services.

Outsourcing manufacturing and importing semi-finished goods, coupled with a move toward just-in-time inventories, has increased demand for 3PL services over the past couple of decades. Larger operators have responded to these trends by providing integrated logistics services such as forwarding, warehousing and documentation. Current improvements in services and technologies are focused on increasing efficiency and decreasing transport costs. No new developments are expected to revolutionize logistics operations. The industry’s services are well-known and wholeheartedly accepted by its major markets, both of which are indicative of the mature phase.

This industry is Mature



Products & Services

Operators in the Third-Party Logistics industry offer a wide variety of products and services. Some offer fully integrated and customized supply chain solutions, while others specialize in certain fields or sectors. Typically, the more integrated and customized the industry service, the longer term the contract is. This facilitates the

proper optimization and predictability of the service.

Transportation managementTransportation management accounts for an estimated 72.3% of industry revenue. This product category is broad and can be divided into domestic and international operations. This service

Products & MarketsSupply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations

KEY BUYING INDUSTRIES

31-33 Manufacturing in the US Manufacturers use industry operators to streamline their logistics operations.

42 Wholesale Trade in the US Wholesalers use industry operators to streamline their logistics operations.

44-45 Retail Trade in the US Retailers use industry operators to streamline their logistics operations.

48-49 Transportation and Warehousing in the US Carriers and other transport companies hire 3PLs when they cannot offer the service themselves.

KEY SELLING INDUSTRIES

23621 Industrial Building Construction in the US The Industrial Building Construction industry builds warehouses and storage facilities.

33392 Forklift & Conveyor Manufacturing in the US The Forklift and Conveyor Manufacturing industry supplies warehousing equipment, including forklifts, conveyors and automated picking systems.

48411 Local Freight Trucking in the US The Local Freight Trucking industry transports products from industry warehouses to end-users.

Supply Chain

Products and services segmentation (2019)

Total $194.2bn

72.3%Transportation management

21.8%Warehousing and related services

5.9%Other services




Products & Markets

Demand Determinants

Third-party logistics (3PL) providers depend on the same factors that drive freight volumes and logistics outsourcing. Freight volumes are products of macroeconomic aspects such as consumers spending, industrial output and trade. Greater US consumer spending raises retail sales and encourages manufacturers to increased production. As a result, freight volumes rise, increasing the potential market for 3PLs. Climbing trade also increases demand for 3PLs because not only does in increase freight volume, but its more complicated nature increases the need for many 3PL services.

Demand for the Third-Party Logistics industry’s services also depends on outsourcing trends. The increasingly complicated nature of the global supply chain and high client expectations for

transparent, efficient and timely delivery has made it more difficult for companies to manage logistics internally. As a result, more and more companies are outsourcing their transportation operations to 3PLs that can use their specialization and scale to streamline clients’ supply chains. In addition, this enables the clients to focus on their core operations, which improves their productivity.

Lastly, online sales have been one of the fastest drivers of industry growth. For one, e-commerce has increased the volume of smaller, but more frequent, package deliveries. Such deliveries require a complicated transportation network, encouraging outsourcing to 3PLs. Moreover, online retailers typically avoid physical operations as often as possible and therefore, outsource logistic to 3PLs.

Products & Servicescontinued

typically involves non-asset-based supply chain services such as freight forwarding (which accounts for the largest share of this service), brokerage and document preparation. While providers of transportation management often do not own assets, some do use in-house equipment such as trucks and aircraft. Over the five years to 2019, revenue from transportation management has increased as freight volumes climbed and logistics outsourcing proliferated.

Warehousing and related servicesWarehousing and related services account for 21.8% of industry revenue. This service involves the outsourcing of warehousing and distribution operations to industry players. Many operators also provide other warehousing-related services such as packing and handling. Warehousing can be further divided into different types of warehouses. The vast majority of this service consists of general warehousing used for most types of goods. Specialized

warehousing involved the storage and handling of goods that require special care and equipment (i.e. oil and gas). Climate controlled or refrigerated storage is often used when dealing with agricultural and pharmaceutical commodities.

Other servicesOther services account for the remaining 5.9% of industry revenue, combined. This includes dedicated contract carriage, supply chain consulting (when not part of transportation management) and supply-chain software and IT outsourcing. Dedicated contract carriage accounts for the largest share of this segment and is among the industry’s fastest-growing services. In this service, industry players provide clients with a fleet of trucks and other equipment that guarantees transportation capacity in return for long-term contracts. Industry players are also responsible for the operation of this equipment and all the associated labor issues.



Products & Markets

International Trade The Third-Party Logistics industry’s service-based nature means that operators are not the source of trade. However, they do transport goods across borders.

Major Markets

Retail, wholesale and transportation marketsThe retail and wholesale market is expected to account for 20.5% of revenue for the Third-Party Logistics industry in 2019. Retailers and wholesalers often outsource their distribution operations to industry players to focus more on their own operations. Over the five years to 2019, this market has grown as retail sales increased along with consumer spending. The transportation market accounts for an additional 16.4% of industry revenue and mostly involves subcontracting various logistics operations among freight carriers and 3PLs. For instance, a 3PL that is lacking a specific logistics operation may partner or hire a competitor.

Industrial and other marketsThe industrial market, which includes manufacturers, mining, extraction,

construction and utility companies, accounts for an estimated 30.8% of revenue for the Third-Party Logistics industry in 2019. Companies in this market typically use industry services to ship goods to other manufacturers, distributors or retailers. Over the past five years, revenue generated from this market has climbed as the US economy expanded and industrial output increased. Other markets account for the remaining 23.5% of revenue. These markets include the information, professional services, education, health, leisure and hospitality sectors. For the most part, these industries are not relatively heavy users of logistics services. An estimated 8.8% of the revenue in the remaining segments are derived from the government market, which makes it the largest remaining single market.

Major market segmentation (2019)

Total $194.2bn

30.8%Industrial

23.5%Other markets

20.5%Retail and wholesale

16.4%Transportation market

8.8%Government




Products & Markets

Business Locations 2019

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OH3.5 VA

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Mid- Atlantic

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Great Lakes



Products & Markets

Business Locations Most activity in the Third-Party Logistics industry is concentrated in states with high levels of manufacturing, trade and other commercial activities, namely the Southeast, West, Great Lakes and Mid-Atlantic regions. Due to its large population and commercial base, the Southeast region has the largest share of industry establishments at 25.4%. The Southeast represents 25.7% of the US population and houses major US ports. The region also hosts a large proportion of rail freight employees and rail maintenance and support enterprises.

The West is the second-largest region in terms of industry establishments with 19.0%. Ports on the West Coast are major transit points, especially for goods entering the country from Asia. Freight is then transported via roads and railways from ports on the West Coast to the East Coast. California has three of the largest container ports in the United States: Los Angeles, Long Beach and Oakland. Asian products bound for the East Coast can save a week moving through Los Angeles, as opposed to a 25-day trip through the Panama Canal.

The Panama Canal expansion project could divert demand away from West Coast ports, as cargo ships will be able to traverse the canal more quickly and possibly transport products directly to Southeast ports. The project, which was completed in 2016, will make the canal bigger so that more and larger ships can pass through it. More than double the ships and goods will be able to make it through the canal when the project is done. As a result, the canal will enable previously unable vessels to travel through to the US Atlantic and Gulf coasts. In the meantime, ports in the East and Southeast are investing in expansion projects of their own in preparation for the potential traffic increase. West Coast ports have focused investment to increase their competitiveness; they seek to

streamline and speed the flow of goods moving to and from the ports of Los Angeles and Long Beach, with other improvement projects planned.

As a traditional manufacturing base, the Great Lakes region also houses a significant share of establishments. This share is proportional to the number of consumers, as the region holds 15.1% of establishments and 14.0% of the population. The central location of the region also makes it an obvious location for transportation companies. Establishments in the Southwest states benefit from freight generated by nearby low-cost producers in Mexico and Central America. Additionally, populations and demographics of the United States are shifting. Traditionally, the highest proportion of the population and the industry centered on the Great Lakes and Mid-Atlantic regions, however, the US population over the past 10 years has shifted to the Southeast, Southwest and the West. Business locations, particularly manufacturers, have also been shifting to the Southeast.

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Cost Structure Benchmarks

ProfitThe average profit margin, measured as earnings before interest and taxes, is expected to account for 7.4% of the Third-Party Logistics industry’s revenue in 2019. Profitability depends on numerous factors including the service being provided, contract terms and transportation costs. Operators that offer customer-based, long-term contracts typically have higher margins due to the customized nature of the contracts and defined terms, which facilitate optimization. Moreover, non-asset-based operators may save on equipment costs, but might be exposed to price fluctuations from freight carriers. Industry margins are further tempered by strong industry price competition. Over the five years to 2019, margins have

contracted slightly as price competition put pressure on revenue.

PurchasesPurchases are by far the largest industry expense, accounting for an estimated 50.9% of industry revenue on average, although they can vary significantly across operators. Generally, purchase costs are lowest for specialist warehousing companies, while brokerages and other larger, comprehensive companies are affected by higher costs. The largest portion of an operator’s average purchase expense comes from the cost of arrangement (COA). COA includes the purchase of transportation services that are required to deliver a client’s goods. For instance, many non-asset-based 3PLs will hire

Key Success Factors Effective quality controlService providers often deliver packages and other items that are valuable or time sensitive, so it is vital for industry participants to have control systems in place that ensure deliveries are not lost or delayed.

Access to the latest available and most efficient technologyThe use of up-to-date technology is essential for industry providers to maintain productivity and reliability. Clients also demand technologies for tracking and verifying orders.

Proximity to key marketsIt is important for establishments in the Third-Party Logistics industry to be conveniently located near key customer markets. Companies that can service a large multistate area will have greater success.

Having a good reputationReputation is important in the Third-Party Logistics industry, and operators earn business based on recommendations and a reputation for quality work and reliability.

Market Share Concentration

The Third-Party Logistics (3PL) industry has a low level of market share concentration. In 2019, the four largest industry players combined are expected to account for less than 15.0% of industry revenue. Most operators are small- to medium-sized businesses that primary focus on regional or more specialized markets. Nonetheless, over the past five

years, market share concentration has increased moderately as merger and acquisition activity picked up. 3PLs have been consolidating to offer more comprehensive services and become one-stop-shops for logistics outsourcing. Some 3PLs have also acquired competitors to enter certain supply chain markets (i.e. auto).

Competitive LandscapeMarket Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalization

Level Concentration in this industry is Low

IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:



Competitive Landscape

Cost Structure Benchmarkscontinued

trucking companies to move freight on behalf of customers. Increasing rates from trucking companies have resulted in rising purchase costs in this industry. Purchases also include fuel consumed in the transportation of goods, subcontracting services to smaller specialized players and renting equipment for particular consignments.

WagesWages account for an estimated 12.9% of industry revenue, although this share greatly varies by type of 3PL. For instance, non-asset-based 3PLs do not operator any significant equipment such as trucks and essentially work as brokers, consultants and forwarders. Therefore, operators save on employing people in the actual transport and handling of goods. Conversely, many companies do operate their own transportation

equipment and distribution centers. In this case, they have to hire a large labor force consisting of everyone from drivers to warehouse employees. Over the five years to 2019, the share of revenue commanded by wages has slightly increased as total employment climbed.

OtherOther costs include general and administrative expenses. Rent and utilities account for 5.1% of revenue on average. In particular, some operators own or rent large warehouses and distribution centers, which increase these expenses. Depreciation accounts for just 1.4% of revenue. Most players do not own transportation vehicles, warehouses or storage units. Instead, companies in the industry mostly act as intermediaries between transportation suppliers and customers.

Sector vs. Industry Costs

n Profi tn Wagesn Purchasesn Depreciationn Marketingn Rent & Utilitiesn Other

Average Costs of all Industries in sector (2019)

Industry Costs (2019)

0

20

40

60

Perc

enta

ge o

f rev

enue

80

100


9.4 7.4

21.7

5.1 0.61.4

50.9

12.9

21.3

7.40.76.2

28.7

26.3




Basis of Competition The Third-Party Logistics (3PL) industry operates under a high level of competition. Operators experience the strongest competition from other 3PLs, but also compete with in-house logistics operations of potential clients.

Internal competitionOperators compete on many factors including price, efficiency, range of service and market. The 3PL industry is highly price-competitive, as clients are capable of choosing from a large selection of 3PL operators as well as moving the operations in-house. Furthermore, because logistics play such an important part in any customer’s operations, 3PLs have to provide the right service and have a reputation for reliability.

3PLs often differ in the types of logistic services they provide and specialize in. While some operators may primarily operate as freight forwarders, others offer warehouse and distribution warehousing. The largest 3PL often gain an advantage from their ability to take over entire logistics operations entirely from their clients, including forwarding, warehousing, documentation, freight tracking and even IT. Some 3PLs will operate at least some of their own assets such as trucks and warehouses to leverage their own networks and not rely on other transportation service providers. However, this can also make operations more expensive and could potentially reduce flexibility that could be gained

from simply hiring other companies on an as-needed basis. Non-asset-based 3PLs are more common, because of lower start-up costs. These operators are often smaller and provide forwarding, consulting and brokerage services.

3PLs that can provide client-tailored supply chain solutions are also more likely to succeed. Clients often require a custom solution to their logistics issues, putting pressure on 3PLs to provide those solutions. The more custom an operation a 3PL can provide for the client, the more integrated with the client’s business they become. For instance, 3PLs can gain access to internal client data on production, inventory, workforce and other factors to optimize transportation. These types of service also often require long-term contracts, which prevents competition and makes it more expensive for clients to switch 3PLs. To provide a more custom logistics service and to reduce competition, some 3PL specialize in certain markets. For example, a 3PL may specialize in the automotive of healthcare supply chains.

External competitionExternal competition stems from the in-house operations of clients. The industry depends on the continued outsourcing of logistics. If it becomes preferable to keep logistics in-house, current and potential customers may stop doing business with 3PLs.

Level & Trend Competition in this industry is High and the trend is Increasing




Industry Globalization

The Third-Party Logistics industry has a high level of globalization. A large portion of the largest industry’s players are foreign owned and based. For instance, Deutsche Post DHL Group and DB Schenker USA are owned by German companies.

Moreover, the industry deals with a large number of imported and exported goods, which makes them reliant on global trade. However, the vast majority of industry operators are domestically owned and based, which limits globalization levels.

Level & Trend Globalization in this industry is High and the trend is Increasing

Barriers to Entry Barriers to entry in the Third-Party Logistics industry are moderate. In general, there are no licensing requirements or resource constraints that are significant enough to prevent operators from entering. The industry is relatively fragmented, with only a handful of companies holding more than or coming close to a 5.0% market share. However, this low level of concentration leads to a high level of competition that is often based on price and can make it difficult for new entrants to generate profit successfully.

To be successful, operators require a high level of expertise in logistics. New entrants experience competition from large and established operators that benefit from a good reputation and a

wide range of services. It is easier to enter as a nonasset-based player due to lower capital costs. Conversely, companies that are asset-based have to spend money on transportation equipment and potentially even warehousing.

Level & Trend Barriers to Entry in this industry are Medium and Increasing

Barriers to Entry checklist

Competition HighConcentration LowLife Cycle Stage MatureCapital Intensity LowTechnology Change MediumRegulation and Policy LightIndustry Assistance Low




Player Performance Eden Prairie, MN-headquartered CH Robinson Worldwide Inc. (CHRW) is one of the largest third-party logistics companies in the world. The company has 281 offices that service over 113,000 active customers and handle 18.0 million shipments. CHRW has contractual relationships with 107,000 transportation companies, including motor carriers, railroads and airfreight and ocean carriers. In November 2012, CHRW expanded its global freight-forwarding network and market presence through its acquisition of Phoenix International Freight Services Ltd., an international freight forwarder based in Chicago. In 2015, the company acquired Freightquote. The company reported $14.9 billion in gross revenue for fiscal 2017 (latest data available), with most of the revenue coming from US-based customers.

In 2016, CHRW started to report its operations through four business lines. North American surface transportation (NAST) is by far the largest company division, accounting for just over 68.8% of total revenue. NAST specializes in freight transportation throughout North America, including truckload, less-than-truckload and intermodal transport. Global forwarding, which accounts for 14.6% of revenue provides ocean freight, airfreight and custom brokerage services. CHRW’s all other and corporate division includes the company’s managed services segment, miscellaneous revenue and other surface transportation outside of North America. Lastly, Robinson Fresh buys, sells and markets fresh fruit, vegetables and other perishable items. Unlike the other divisions, Robinson Fresh is not industry relevant.

Major CompaniesCH Robinson Worldwide Inc. | Other Companies

93.3%Other

CH Robinson Worldwide Inc. 6.7% SOURCE: WWW.IBISWORLD.COM

Major Players(Market Share)

CH Robinson Worldwide Inc. (US industry-specifi c segment) - fi nancial performance*

YearRevenue

($ million) (% change)Operating Income

($ million) (% change)

2014 $9,152.2 N/C $544.1 N/C

2015 $9,523.2 4.1 $569.4 4.6

2016 $9,218.1 -3.2 $522.2 -8.3

2017 $10,269.8 11.4 $610.1 16.8

2018 $12,195.7 18.8 $804.4 31.8

2019 $13,011.6 6.7 $871.6 8.4

*Estimates SOURCE: ANNUAL REPORT AND IBISWORLD

CH Robinson Worldwide Inc. Market Share: 6.7%



Major Companies

Other Company Performance

Based in Bonn, Germany, Deutsche Post DHL Group (DHL) is a postal, delivery, freight-forwarding and third-party logistics company. DHL primarily operates in Germany and greater Europe but has a significant freight-forwarding presence in the United States. Its freight-forwarding business is categorized under the Global Forwarding, Freight division, which is part of four operating divisions. Altogether, the company generated total revenue of $60.4 billion in 2017 (latest data available). DHL’s freight forwarding

business is an important part of the company’s revenue-generating capabilities, representing about one-sixth of the company’s total revenue. DHL’s enormous global network enables the company to offer high-quality, differentiated services that include sector-specific operations and multimodal transport solutions. However, only about 30.0% of DHL’s revenue is generated inside the United States, which makes its industry-specific revenue low relative to all of DHL’s

Other Company Performance

UPS Supply Chain Solutions Inc. (UPSCS) is a leading third-party logistics provider and a subsidiary of United Parcel Service Inc. (UPS), one of the largest logistics and transportation companies in the United States. UPSCS is a unit within UPS’s supply chain and freight segment, operating its industry-specific forwarding and logistics business. UPSCS is one of the top international airfreight forwarders globally. As a nonvessel-operating common carrier, the company provides ocean freight full-container load and less-than-container load shipments between most major ports worldwide. UPS is also one of the largest customs brokerages globally, by both the number of shipments processed annually and the number of brokers worldwide. UPS offers

customs clearance, trade management and international trade consulting services. In addition to freight forwarding and customs brokerage, the company provides a range of logistics solutions. For instance, UPS’s distribution services enable companies in the healthcare, high-tech, retail and aerospace industries to streamline supply chains, minimizing their capital investment and positioning their products closer to their customers. In addition, the company’s post-sale services support goods after they have been delivered or installed in the field. These businesses complement one another because each service enables customers to store, import, export or transport freight entirely through UPS. In 2019, the company is expected to generate $6.2 billion in industry-specific revenue.

Player Performancecontinued

Financial performanceOver the five years to 2019, CHRW’s Third-Party Logistics industry-specific revenue is expected to climb at an annualized rate of 7.3% to $13.0 billion. Like the rest of the industry, the company has benefited from increasing US economic growth and freight volumes. Moreover, the outsourcing of

logistics operations has also continued over the five years to 2019 as clients focus on core operations. Company revenue declined in 2016 due to lower fees charged to clients, although the lower fees were primarily a result of lower fuel prices. Revenue has recovered since then and is expected to increase 6.7% in 2019 alone.

UPS Supply Chain Solutions Inc. Market Share: 3.2%

Deutsche Post DHL Group Market Share: 1.9%



Major Companies

Other Company Performancecontinued

operations. In 2019, it is estimated that DHL will generate $3.7 billion in industry-specific revenue.



Capital Intensity The Third-Party Logistics industry has a low level of capital intensity. In 2019, for every dollar industry operators invest in labor, $0.11 is expected to be spent on capital. Capital investment is made up of washhouses, warehouse equipment, transportation equipment (i.e. trucks) call centers and payment processing and package tracking software. Once a company invests in these items, its spending on capital declines. Conversely, the industry is very labor intensive. Employees are needed to handle and transport freight. Moreover, capital intensity if further reduced by non-asset-based players that do not own their own transportation equipment.

Operating ConditionsCapital Intensity | Technology & Systems | Revenue VolatilityRegulation & Policy | Industry Assistance

Capital Intensity

0.5

0.0

0.1

0.2

0.3

0.4

SOURCE: WWW.IBISWORLD.COMDotted line shows a high level of capital intensity

Capital units per labor unit

Third-Party Logistics

Transportation and Warehous-

ing

Economy

Level The level of capital intensity is Low



Operating Conditions

Revenue Volatility The Third-Party Logistics industry has a low level of revenue volatility. In general, demand for industry services is dependent on US freight volumes, which are themselves dependent on macroeconomic conditions. As

a result, operators are exposed to volatility in consumer spending, industrial output and trade. Increasing logistics outsourcing has also bolstered demand for industry services, tempering volatility in actual freight volumes.

Technology & Systems Overall, the Third-Party Logistics industry has a moderate level of technological change. It is increasingly important for operators in this industry to invest in business-to-business e-commerce technology and online ordering systems since their customers may install these systems or already have them in place.

Barcode technology is used extensively to sort small freight and parcels. The latest technology in radio frequency identification (RFID) is coupled with modern advances in two-dimensional barcode (light wave) technology. In the past, RFID has been used for basic tasks such as the evaluation of postal performance, but there have been larger innovations in RFID technology in the industry. RFID technology is a wireless link to uniquely identify objects or people, which enables for greater efficiency and fewer human errors. Electronic tags are attached to an item

and then scanned with an RFID reader. RFID tags are much more versatile than bar codes. RFID tags can store larger amounts of information and can be updated at any point of travel. Additionally, RFID tags can be scanned even if the tag is on the inside of a package and the reader can scan hundreds of tags simultaneously. This technology has been increasing over the past five years, becoming less expensive as well, and is expected to grow over the next 10 years. Additionally, the new data-dense, invisible ultra-violet “snowflake” magnetic ink imprints uses wireless logistics technologies that make it possible to track and view assets virtually.

In recent years the use of robots has increased in the overall warehousing segment. These machines can handle, locate and store packages in the most efficient manner, although this technology has yet to take off at large in the industry.

Level The level of technology change is Medium

Level The level of volatility is Low



Operating Conditions

Industry Assistance Although the Third-Party Logistics industry is not directly affected by tariffs, lower tariffs can increase import penetration, thereby increasing the number of consumable and durable products entering the United States. An increasing number of imported products provide demand for industry services. Industry

operators primarily benefit from industry trade groups. For example, the Material Handling Industry of America is the leading nonprofit trade group representing US material handling and logistics companies. Members include third-party logistics providers and logistics equipment, systems and software manufacturers.

Regulation & Policy Overall, the Third-Party Logistics industry has a low to moderate level of regulation. However, the intensity of regulation depends on the services offered.

Transportation management, including freight forwarding in particular, accounts for the largest share of industry revenue. The National Customs Brokers and Freight Forwarders Association of America Inc. provide some self-regulation by providing professional accredited courses to its members. For instance, it offers the Certified Ocean Forwarders program that grants the distinction of professional ocean freight forwarder to qualified individuals. Customs brokers are well regulated and licensed by the US Treasury Department. The Federal Maritime Commission (FMC) licenses ocean freight forwarders, while the International Air Transportation Association (IATA) accredits international air cargo agents. Surface freight forwarders are accredited by the Surface Transportation Board and provide cargo insurance. According to Section 641 of the Tariff Act, the Treasury must individually and personally license

customs brokers, and brokerages must obtain a separate license. A copy of the insurance policy must be filed with the STB for the protection of the forwarders’ customers. To be licensed, a freight forwarder brokerage or agency must pass a comprehensive test.

Either the FMC or the Interstate Commerce Commission must license truck or rail forwarding for all companies involved in ocean transport. Since deregulation of the US air transportation industry, airfreight forwarders have not been subject to formal licensing requirements; however, the IATA endorses most air cargo agents involved with international forwarding.

As a whole, the warehousing segment has a low level of regulation. However, there are several licensing laws that affect warehouse operators, depending on the type of goods they store. For example, operators that handle food storage require various licenses from relevant health authorities. Similarly, operators that handle potentially hazardous goods require specific licenses by relevant state government agencies.

Level & Trend The level of Regulation is Light and the trend is Steady

Level & Trend The level of Industry Assistance is Low and the trend is Steady



Key StatisticsRevenue

($m)

Industry Value Added

($m)Establish-

ments Enterprises Employment Exports ImportsWages ($m)

Domestic Demand


2010 142,051.8 33,246.4 19,218 12,825 329,508 -- -- 19,741.6 N/A 106.52011 148,617.7 34,695.7 17,986 12,341 321,823 -- -- 20,360.4 N/A 110.92012 154,546.0 35,743.0 18,953 12,996 346,147 -- -- 21,020.6 N/A 112.22013 158,520.1 36,475.1 18,181 12,606 338,160 -- -- 20,446.8 N/A 116.32014 167,686.4 37,298.5 17,949 12,410 348,723 -- -- 21,398.5 N/A 120.42015 171,624.3 37,900.1 17,983 12,119 360,703 -- -- 22,519.0 N/A 122.22016 173,450.5 39,162.3 18,731 13,313 386,347 -- -- 23,560.2 N/A 122.82017 180,847.0 38,954.0 19,643 13,909 398,355 -- -- 23,392.2 N/A 128.02018 189,081.3 40,956.5 20,130 14,237 413,453 -- -- 24,314.6 N/A 134.62019 194,241.5 42,178.4 20,573 14,550 425,096 -- -- 24,994.9 N/A 136.62020 199,180.8 43,284.8 20,906 14,787 435,518 -- -- 25,612.2 N/A 138.32021 206,890.0 44,647.3 21,447 15,166 451,098 -- -- 26,543.5 N/A 139.92022 214,198.1 46,191.5 22,062 15,602 466,636 -- -- 27,462.4 N/A 141.52023 223,405.1 48,233.0 22,774 16,114 485,190 -- -- 28,572.1 N/A 143.22024 232,142.2 50,147.5 23,440 16,582 502,621 -- -- 29,616.7 N/A 144.8

IVA/Revenue (%)

Imports/ Demand

(%)

Exports/ Revenue

(%)

Revenue per Employee

($’000)Wages/Revenue

(%)Employees

per Est.Average Wage

($)

Share of the Economy

(%)2010 23.40 N/A N/A 431.10 13.90 17.15 59,912.35 0.212011 23.35 N/A N/A 461.80 13.70 17.89 63,265.83 0.222012 23.13 N/A N/A 446.48 13.60 18.26 60,727.38 0.222013 23.01 N/A N/A 468.77 12.90 18.60 60,464.87 0.222014 22.24 N/A N/A 480.86 12.76 19.43 61,362.46 0.222015 22.08 N/A N/A 475.81 13.12 20.06 62,430.86 0.222016 22.58 N/A N/A 448.95 13.58 20.63 60,981.97 0.222017 21.54 N/A N/A 453.98 12.93 20.28 58,721.99 0.222018 21.66 N/A N/A 457.32 12.86 20.54 58,808.62 0.222019 21.71 N/A N/A 456.94 12.87 20.66 58,798.25 0.222020 21.73 N/A N/A 457.34 12.86 20.83 58,808.59 0.222021 21.58 N/A N/A 458.64 12.83 21.03 58,841.98 0.232022 21.56 N/A N/A 459.03 12.82 21.15 58,851.87 0.232023 21.59 N/A N/A 460.45 12.79 21.30 58,888.48 0.242024 21.60 N/A N/A 461.86 12.76 21.44 58,924.52 0.24

Figures are in inflation-adjusted 2019 dollars.

Revenue (%)

Industry Value Added

(%)

Establish-ments

(%)Enterprises

(%)Employment

(%)Exports

(%)Imports

(%)Wages

(%)

Domestic Demand

(%)


(%)2011 4.6 4.4 -6.4 -3.8 -2.3 N/A N/A 3.1 N/A 4.12012 4.0 3.0 5.4 5.3 7.6 N/A N/A 3.2 N/A 1.22013 2.6 2.0 -4.1 -3.0 -2.3 N/A N/A -2.7 N/A 3.72014 5.8 2.3 -1.3 -1.6 3.1 N/A N/A 4.7 N/A 3.62015 2.3 1.6 0.2 -2.3 3.4 N/A N/A 5.2 N/A 1.52016 1.1 3.3 4.2 9.9 7.1 N/A N/A 4.6 N/A 0.52017 4.3 -0.5 4.9 4.5 3.1 N/A N/A -0.7 N/A 4.22018 4.6 5.1 2.5 2.4 3.8 N/A N/A 3.9 N/A 5.22019 2.7 3.0 2.2 2.2 2.8 N/A N/A 2.8 N/A 1.52020 2.5 2.6 1.6 1.6 2.5 N/A N/A 2.5 N/A 1.22021 3.9 3.1 2.6 2.6 3.6 N/A N/A 3.6 N/A 1.22022 3.5 3.5 2.9 2.9 3.4 N/A N/A 3.5 N/A 1.12023 4.3 4.4 3.2 3.3 4.0 N/A N/A 4.0 N/A 1.22024 3.9 4.0 2.9 2.9 3.6 N/A N/A 3.7 N/A 1.1

Annual Change

Key Ratios

Industry Data




Jargon & Glossary

BARRIERS TO ENTRY High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the “real” growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control.

ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single physical location where business is conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise.

EXPORTS Total value of industry goods and services sold by US companies to customers abroad.

IMPORTS Total value of industry goods and services brought in from foreign countries to be sold in the United States.

INDUSTRY CONCENTRATION An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%.

INDUSTRY REVENUE The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.

INDUSTRY VALUE ADDED (IVA) The market value of goods and services produced by the industry minus the cost of goods and services used in production. IVA is also described as the industry’s contribution to GDP, or profit plus wages and depreciation.

INTERNATIONAL TRADE The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%, and high is more than 35%.

LIFE CYCLE All industries go through periods of growth, maturity and decline. IBISWorld determines an industry’s life cycle by considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments; the amount of change the industry’s products are undergoing; the rate of technological change; and the level of customer acceptance of industry products and services.

NONEMPLOYING ESTABLISHMENT Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-employed individuals.

PROFIT IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding interest and tax.

VOLATILITY The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.

WAGES The gross total wages and salaries of all employees in the industry. The cost of benefits is also included in this figure.

Industry Jargon

IBISWorld Glossary

FORWARDING Arranging the storage and shipping of goods on behalf of its shippers.

FULFILLMENT The process of delivering a product to a customer.

INTEGRATED LOGISTIC SERVICE Provision of transportation activities from door to door through the vertical integration of the supply chain.


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