TIA releases 2nd quarter performance measures for 3PL industry

Transportation Intermediaries Association (TIA), the largest association representing third-party logistics (3PLs) companies, has released its Second Quarter 2020 TIA 3PL Market Report. The report reflects that the Q2 numbers were surprisingly strong for both volumes and margins, showing gains despite the pandemic ridden economy, reports TIA Chief Economist, Noël Perry.

Perry also notes that uncertainties may arise in our future due to the global pandemic and that to interpret this data, it is best to take previous quarters and our unknown futures into consideration.

The report represents that for Q2 total shipments, revenue, and invoice amount per shipment declined 1.2%, 8.1%, and 7%, respectively, compared to Q1.

The impact of COVID on freight was noticeable for Truckload and Intermodal, reflecting the sharp change in volume and the largest decline in volume since 2015. The data also indicates shippers relied on 3PLs more often than obtaining capacity directly from asset providers. While 3PL volumes declined, they declined at a lesser rate than the industry.

The study participants reported activity in six modes or services offered. TL remains the dominant mode at 72%. Adding Intermodal and LTL, the three modes are 97% of all activity. The remaining 3% of activity comprises air, warehousing, and other miscellaneous services.

TIA’s 3PL Market Report contains rolling eight-quarter trends and fuel price comparisons, allowing 3PLs and industry observers to view how the industry is performing as well as to compare their business to companies of a similar size. Additionally, the report includes detailed 3PL activities by transportation mode and measures comparative volume, revenue, margin, and margin percentages, quarterly, and year over year.

The publication 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. TIA’s efforts provide a comprehensive report on the trends and practices of the 3PL industry.