Dear Colosjp,
Below you will find the additional information that I uncovered.
From Georgia Tech
THIRD PARTY LOGISTICS
Results and Findings of the 2004 Ninth Annual Study
?This study identifies and tracks key trends and views of the
third-party logistics (3PL) industry from the perspectives of
customers who purchase and use 3PL services. Over the years, this
study has grown in terms of the regions and industries examined. Also,
each annual study addresses key issues that have emerged from time to
time relevant to the logistics and 3PL industries.?
The total annual revenues of U.S.-based 3PL providers in 2003 are approximately
US$76.9 billion.
Source: Armstrong & Associates, Inc.,
Estimated total contract logistics market revenues were US$56.4
billion for 2000, US$60.8 billion for 2001, and US$65.0 billion for
2002.
Anticipated sales revenues for 2004.
?Of the North American respondents, approximately 58% of the firms
have revenues between US$1 billion and US$25 billion; another 12%
project revenues over US$25 billion. Generally, 3PL user firms in
Western Europe tend to be somewhat smaller (57% expect 2004 sales
revenues to exceed US$1 billion, or 44% in terms of 1 billion euros or
more), as do 3PL users in Asia-Pacific (33%), and Latin America
(11%).?
Third-Party Logistics Study: Results and Findings of the 2004 Ninth Annual Study
(40 pages)
Download here:
http://www.tli.gatech.edu/downloads/TLIGT-2004_3PLStudy.pdf
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2004 LOGISTICS & DISTRIBUTION INDUSTRY REPORT
See page 6 for trends in the 2003 Logistics Industry 2004 outlook
Sources for this report include: USBX Advisory research, Investment
banking research, Capital IQ, Company SEC filings and Mergerstat.
Download here:
http://www.usbx.com/industries/outsourced_services/logistics/Logistics_Distribution_Q1_2004.pdf
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Freight Forwarding
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Leading Freight Forwarders
Total Logistics Revenue (FY 2001)
Exel plc
$6.5 billion
Kuehne & Nagel Inc.
$1.727 billion
Danzas Solutions
$1.324 billion
Panalpina
$1.068 billion
Frans Maas Network & Logistics Services
$847 million
Menlo Worldwide Logistics (Emery)
$708 million
EGL Inc. (Eagle)
$644 million
Expeditors International of Washington Inc.
$607 million
APL Logistics
$420 million
Schenker Inc.
$400 million
Source: Armstrong & Associates' "Who's Who in Logistics," 2002 edition
According to Armstrong & Associates:
? Basel, Switzerland-based Danzas Solutions, a freight forwarder since
1815, is rated a capable lead logistics provider (LLP) with a European
focus.?
?the UK's Exel plc a very good global LLP, one of the top ten in
overall ability and geographical reach.?
? Kuehne & Nagel is a good forwarder with very good 3PL operations.?
?Netherlands-based Frans Maas is considered a capable European-centric
forwarder and 3PL.?
?Stateside, Panalpina qualifies as a good freight forwarder and 3PL
with global reach and Swiss fiscal conservatism. Schenker earned a
rating of good international freight forwarder with some 3PL
abilities. NOL Group's APL Logistics is considered a good
international freight forwarder combined with a very good 3PL.?
?Armstrong rates Expeditors International of Washington very good to
excellent as an international forwarder with Asian inbound supply
chain management.?
? Menlo Worldwide Logistics (including Emery) is considered very good
at supply chain management and as an LLP. EGL (Eagle) is best at
domestic U.S. airfreight forwarding.?
World trade magazine: 02/01/2003
http://www.worldtrademag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,3483,91681,00.html
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The UK freight forwarding market is valued at £15 billion in 2004
?Year-on-year growth in the UK freight forwarding market has exceeded
growth in the overall economy throughout the five years prior to 2004.
Accordingly, demand in 2004 is believed to have continued to increase,
albeit at a reduced rate of 4% growth. In 2004, revenue for freight
forwarders increased to an estimated £15 billion.?
Market & Business Development
http://www.mbdltd.co.uk/Press-Release/Freight-Forwarding.htm
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?FedEx Freight is the $2 billion leading provider of next-day and
second-day regional LTL freight services.?
http://www.fedexfreight.fedex.com/press_releasesresp.jsp?as_press=pr_11-21-02.htm
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?Economists say freight forwarding activity will grow by 4 percent by
the end of the year and by 5 percent in 2004.?
The Roemer Report On-Line, November 2003
http://www.roemer-insurance.com/roemerins/rr1103.htm
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?United Parcel Service Inc has agreed to buy Menlo Worldwide
Forwarding, a subsidiary of CNF Inc, for about $260 million in cash
and debt assumptions.?
?United Parcel Service said in a statement released today that the
acquisition of Menlo Worldwide Forwarding, which provides global air
freight forwarding, ocean and international trade management services,
would boost its global logistics business expansion efforts. The two
companies said today that United Parcel Service would acquire this
subsidiary from CNF for $150 million in cash and approximately $110
million in long-term debt assumptions.?
Newratings
http://www.newratings.com/analyst_news/article_475218.html
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Analysts at Bear Stearns mention that UPS ?plans to stimulate growth
through reduced operating costs, mid-market accounts and the
deployment of package flow technology.?
?United Parcel Service?s growth is expected to be driven by a pick up
in the domestic package volume growth in 2005, the analysts say. A
change in the accounting treatment of revenue recognition is likely to
understate the company?s 1Q05 results and overstate 4Q05 results, Bear
Stearns adds.?
Newratings
http://www.newratings.com/analyst_news/article_685463.html
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Satish Jindel, president of SJ Consulting says ?it was inevitable UPS
would lose US market share as FedEx and DHL expanded but predicts
there will be enough business to keep all three busy as global trade
increases. Transport and logistics are becoming a more critical part
of global commerce as supply chains stretch across oceans and borders.
There are only a few companies that can provide global solutions to
customers, and UPS is one of them."
?Last year's acquisition by UPS of freight company Menlo Worldwide
Forwarding showed how package delivery groups were diversifying into
broader logistics. FedEx has also expanded into freight transport. "It
is no longer good enough to get a small parcel from Atlanta to
Memphis," says Mr Jindel. "Customers are demanding integrated
solutions for their entire global supply chains." He predicts that the
package delivery giants will continue to lead consolidation of smaller
freight companies until the global logistics industry is dominated by
a handful of companies. Besides UPS, FedEx and DHL, Mr Jindel names
Netherlands-based TNT and Exel of the UK as other likely global
players.?
http://www.fedex401k.com/News.html
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I am reposting my previous findings below.
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Third-party Logistics Providers
===============================
The Top 20 3PLs in North America
?North American third-party logistics has been a growth business since
its inception in the late 1980s. The cumulative annual growth rate
from 1996 through 2003 was 14%. Armstrong & Associates estimates 3PL
revenues for North America to be $104 billion (US). International
transportation management which includes freight forwarding and cross
border transportation management accounts for $39 billion.?
?The major competitors are similar in Mexico, the U.S. and Canada.
Most of our Top 20 have offices in all three countries. Exel, the
world?s largest 3PL, has 45 locations in Mexico, 20 in Canada and over
200 in the U.S. TNT has 39 in Canada, 4 in Mexico and 118 in the U.S.
All of our Top 20 are heavily involved in cross-border traffic.?
?Exel is the world?s largest 3PL ? UPS is the largest North
America-based 3PL. The two will compete even more heavily in the years
ahead.?
UPS Supply Chain Solutions ? Atlanta, GA
3PL Turnover:
North America: $4.1b
Global: $33.5b
Exel Americas ? Westerville, OH
3PL Turnover:
North America: $3.9b
Global: $11.2b
C.H. Robinson Worldwide
3PL Turnover:
North America: $3.6b
Menlo Worldwide
3PL Turnover:
North America: $2.96b Parent Revenue: $5.6b
Read the full text of this article here:
http://www.lq.ca/issues/nov2004/articles/article03.html
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Table 11-2 Third-Party Revenues Estimated at $56.4 Billion in 2000
http://www.swlearning.com/quant/coyle/seventh_edition/powerpoint/ch11.ppt
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Third-Party Logistics Study Results and Findings of the 2001
Sixth Annual Study
?Overall, the results of this study help provide a better
understanding of the marketplace for 3PL services and the ways in
which providers of such services continue to develop and grow.
Considering that the total annual revenues of these companies are
currently between $50 billion and $60 billion,5 the services offered
by 3PL providers consume a significant portion of overall logistics
and supply chain budgets.?
http://www.tli.gatech.edu/downloads/3PLStudy_2001.pdf
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Third-party Logistics Providers See Revenues, Profits Up in 2003
?For the ninth consecutive year, U.S. growth in third-party, contract
logistics services exceeded growth in the overall U.S. economy, with
net revenues for third-party logistics providers (3PLs) rising by 6
percent, to $32.9 billion, in 2003, following 7 percent growth for
2002, according to a new report from supply chain management
consulting firm Armstrong & Associates.?
?Net income for 3PLs increased to 4 percent of net revenue, up from 3
percent in 2002 and 1.7 percent in FY 2001. Turnover (gross revenues)
increased by 8.2 percent, to $76.9 billion.?
March 26, 2004
http://www.sdcexec.com/article_arch.asp?article_id=5333
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Parcel Carriers
===============
Last year, DHL suddenly became a substantive player in the
$50.2-billion U.S. air- and ground-parcel-delivery market.
?The expansion, Fellows added, will provide U.S. customers with a
strong alternative to Federal Express and United Parcel Service, the
American market's Big Two. Atlanta-based UPS controls some 50 percent
of the U.S. air and ground market, while Memphis-based FedEx holds
some 25 percent.?
?DHL's annual share of total U.S. market revenues ranges between 6
percent and 8 percent. With its expansion, the company plans to
increase its revenue share to 15 percent within five to seven years,
he explained. But DHL won't try to increase revenues by getting into a
U.S. price war with UPS and FedEx, Fellows added.?
?The DHL Express Americas' CEO offered no hints of where the company's
new sorting centers might be located, saying only that they would be
sited "throughout the United States." Each center will employ 30 to 50
workers, he explained.
?http://www.conway.com/ssinsider/bbdeal/bd040705.htm
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?According to JPMorgan, UPS's share of the domestic parcel market fell
from 48 to 47 percent last year, while FedEx increased its portion
from 29 to 31 percent.?
MSNBC: Jan. 26, 2005
http://msnbc.msn.com/id/6870422/
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I also located an American parcel delivery market report
?The United States parcel industry is composed of five large
competitors capable of offering nationwide service: Airborne, DHL,
FedEx, UPS and the United States Postal Service.?
?UPS is the largest domestic parcel carrier with $24 billion in United
States domestic revenue. UPS's domestic parcel business is three times
the size of that of the United States Postal Service, twice as large
as FedEx, and nearly ten times the size of Airborne, the
fourth-largest U.S carrier. DHL's U.S. parcel/air freight business is
less than 1/20th the size of UPS.?
See Exhibit Exhibit I-1 for Comparison of Fiscal Year 2001 Parcel Carrier
Financial Data
Figure II-4 Revenue Market Share - Parcels
Airborne Express 4.0%
BAX Global 0.2%
DHL 0.9%
Emery 0.2%
FedEx 18.8%
United Parcel Service 63.9%
USPS 9.2%
All Other Competitors 2.9%
UPS earns nearly 64% of the revenue generated in the parcel delivery market.
http://www.postcom.org/public/articles/2003articles/parcel_competition.htm
I hope you find this information helpful!
Best regards,
Bobbie7 |
