Welcome to TIA News!

Your go-to destination for the latest industry insights, TIA-curated content, and up-to-date news about 3PL. Whether you're looking for expert analysis, breaking stories, or in-depth features, we're excited to have you here! 

 

Looking for TIA members-only resources like education courses? Click the button below.

 

 

 

 

Press Releases

TIA 3PL Market Report Q4 2023: Navigating Through Challenges with a Glimpse of Recovery

Share

The Transportation Intermediaries Association (TIA), the voice of third-party logistics professionals, has released its much-anticipated 3PL Market Report for the fourth quarter of 2023. This latest report captures the ongoing challenges and emerging positive trends within the transportation and logistics industry, highlighting the resilience and adaptability of TIA members in navigating a complex market landscape.

The report outlines a decline in shipments, invoice amount per shipment, and total revenue compared to the previous quarter. Specifically, total shipments saw a 4.7% quarter-over-quarter decrease and an 8.9% year-over-year decline. Invoice amounts per shipment and total revenue also faced significant drops, indicating that the fourth quarter was the toughest of 2023.

Despite these challenges, the report identifies signs of recovery in transportation costs, which have started to rebound from the early 2023 lows. This shift comes as the industry grapples with the exit of over 35,000 carriers from the market in the last 18 months, underscoring the dynamic nature of the logistics sector. 

“The market is tough for brokers and intermediaries, as our Q4 Market Report revealed,” said Anne Reinke, TIA president & CEO. “Despite headwinds, TIA members are serving their customers effectively and efficiently, investing in their businesses, and are beginning to see some positive trends in the marketplace.”

More Key Takeaways and Trends Include:

  • Resilience Amidst Decline: While the overall volume and revenue metrics indicate a downturn, the report highlights the sector’s resilience. Larger brokers have notably outperformed their smaller counterparts in terms of invoice amount per load and gross margin, suggesting a slight overall enhancement in market conditions.
  • Segment-Specific Recovery Signs: There’s a noteworthy improvement in the invoice amount per load for both Truckload (TL) and Less Than Truckload (LTL) segments, hinting at a gradual recovery in the transportation cost. This recovery is crucial for stabilizing the market and offering some relief to 3PL providers facing tight margins and decreased volumes.
  • Future Outlook and Adaptability: Despite the challenging year, the fourth quarter showcased the best performance in 2023, signaling potential for recovery and growth. TIA members are actively adapting to market demands, refining their service offerings and leveraging technology to enhance efficiency. 

The report also sheds light on the significant decline experienced by the Full Truckload (TL) segment compared to others, with Intermodal (IM) facing the most considerable drop in invoice amount per load and total revenue. However, the resilience in the Less Than Truckload (LTL) segment, showcasing improvements in invoice amount per load similar to the third quarter, suggests varied impacts across different modes of transportation. 

“While 2023 has been a challenging year for the 3PL sector, with the fourth quarter being particularly tough, there are emerging signs of a turnaround,” said Mark Christos, TIA chairman of the Board. “The industry’s ability to remain flexible and responsive to changing market conditions will be crucial in overcoming current challenges and seizing future opportunities.” 

The full report “3PL Market Report, Fourth Quarter 2023, Issue 61” is available for free to media upon request. 

Please note: The 3PL Market Report is intended for TIA subscribers and the full report is not meant to be reproduced or redistributed by any recipients.

About TIA

The Transportation Intermediaries Association (TIA) is the professional organization of the $343 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials, and international organizations. Learn more about TIA at www.tianet.org.

Tell Us What You Think!

Have a question? Ideas for new content? TIA wants your thoughts on this new resource and how it can better serve our members.

Send Feedback

© 2024