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Transportation service providers manage growing volumes, tight capacity

Although growth slowed in the third quarter, 3PL shipments were still up 11% year-over-year, trade group report shows.

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Supply Chain Quarterly Staff
By Supply Chain Quarterly StaffDec 02, 2021
Supply Chain Quarterly Staff
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Third-party logistics services providers (3PLs) continued to handle an increase in transportation freight volumes during the third quarter, although growth slowed compared to earlier in the year, according to data from the Transportation Intermediaries Association (TIA), released this week.

TIA’s 3PL Market Report for Q3 showed a nearly 8% sequential increase in shipments from the second to third quarters this year and an 11% increase year-over-year. Total revenue was up more than 10% sequentially and 36% year-over-year, according to the report.

TIA members surveyed for the report also posted a 23% improvement in gross margin compared to a year ago.

The report measures shipment growth by segment, including truckload (TL), less-than-truckload (LTL), intermodal, and “other.” Volume growth fell across the board in the third quarter, with negatives in LTL and intermodal, according to the report.

“While our Third Quarter Market Report shows that the overall volumes continue to grow, the growth is less elevated than in previous quarters,” TIA President and CEO Anne Reinke said in a statement announcing the report’s results. “Still, capacity is very constrained, and our members have never shown their value more and have never been more necessary to help make freight move fluidly.”

TIA’s 3PL Market Report is based on monthly data submissions and surveys of TIA members, who provide current operating data and answer questions on business conditions affecting the 3PL industry.

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