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The report, entitled “Working through the Uncertainty—Latest Third-Party Logistics Market Results and Outlook,” said that U.S. 3PL Market net revenues, which Armstrong defines as gross revenues less purchased transportation, increased 1.8%, to $131.5 billion in 2024, coming off of a 12.8% annual decline, to $129 billion, in 2023.

The report, entitled “Divergence—Latest Third-Party Logistics Market Results and Outlook,” said that U.S. 3PL Market net revenues, which Armstrong defines as gross revenues less purchased transportation, fell 12.8%, from 2022 to 2023, to $129 billion, with overall gross revenues down 26.1% annually, and total U.S. 3PL Market revenue coming in at $299.5 billion, for 2023.

Technological solutions and platforms are being rapidly developed and are catapulting the freight forwarding industry into a new era. Today, the forwarding industry is undergoing a digital revolution, and analysts surmise that companies that fail to keep pace with these advancements risk falling behind—and fast.

Armstrong data points to a 24% annual increase to $148.1 billion, with overall gross revenues seeing an 18.3% annual increase, with total U.S. 3PL Market revenue coming in at $405.5 billion, for 2022.

The trio of strong consumer demand, ongoing supply chain bottlenecks, and tight carrier capacity worked in tandem to drive air, ground, and ocean transportation rates to all-time highs in 2021, with shippers turning to third-party logistics (3PL) services providers on various fronts, including inventory replenishment and avoiding stock outs, according to a new report recently issued by Milwaukee-based supply chain consultancy Armstrong & Associates.