While the vast majority of freight transportation companies have been struggling recently, last year was probably the most challenging for players in the domestic and global third-party logistics (3PL) provider markets.
We saw freight rates plummet; fuel prices skyrocket; volumes fall; revenue drop; it became tougher to retain and attract talent; warehouse space tightened; rules and regulations increased; there was congestion in and round the ports; tech-forward competition surged; and the supply chain faced frequent disruptions at home and around the world.
“Many of those challenges continue to face 3PLs,” says Karen Thuermer, our correspondent who’s has been tracking the 3PL market for Logistics Management over the past four years. She recently reported on the latest study on the global 3PL market from Transport Intelligence in London that found that the three most important challenges currently affecting the 3PL industry are the economic downturn, increased costs, and increasing competition—not a surprise.
“However, while those three areas of concern are a near carbon copy of the findings from their 2023 study, researchers say that 2024 study found the concerns surrounding the economy and its effect on the 3PL market have clearly grown—signaling that the 3PL market won’t be out of the woods for some time.”
And while the domestic and global logistics challenges continue to mount, it’s safe to say that the 28 winners of 2024 Quest for Quality gold have found a way to rise above the fray to delivery world-class service in the eyes of Logistics Management readers.
Leading the way in our 3PL Transportation Management category this year is APL Logistics with an impressive 57.13 weighted score. APL led the way in the Carrier Selection/Negotiation (12.43) and Transportation/Distribution (12.06) attribute categories on the way to the top score.
This year’s nine winning Value-Added Services weighted scores were extremely close across the board, with Ryder System putting up top marks in Customer Service (11.68) and Order Fulfillment (11.37), while NFI posted a 12.08 in Transportation Distribution. APL Logistics scored top in Inventory Management (11.41), and there was a three-way tie in this year’s Information Systems attribute category, with APL Logistics, UPS Supply Chain Solutions, and NFI all posting a 10.56.
(Bold indicates leader in attribute category)
| Carrier Selection/negotiation | Order fulfillment | Transportation distribution | Inventory managment | Logistics information systems | Weighted score | |
| APL Logistics | 12.43 | 11.70 | 12.06 | 10.55 | 10.38 | 57.13 |
| Armstrong Transport Group | 11.62 | 11.25 | 11.60 | 9.85 | 12.24 | 56.56 |
| Ryder System, Inc. | 12.91 | 11.25 | 10.21 | 9.50 | 12.24 | 56.10 |
| FedEx Supply Chain | 10.74 | 10.88 | 11.60 | 10.20 | 11.30 | 54.70 |
| NFI Logistics | 10.98 | 11.70 | 10.83 | 10.13 | 10.68 | 54.31 |
| UPS Supply Chain Solutions | 10.27 | 10.50 | 11.02 | 10.25 | 10.57 | 52.61 |
| J.B. Hunt Transport Services | 11.75 | 10.29 | 11.27 | 9.65 | 9.54 | 52.49 |
| Landstar | 11.30 | 10.80 | 10.21 | 9.85 | 9.79 | 51.94 |
| Americold | 9.61 | 10.93 | 10.83 | 10.55 | 9.64 | 51.55 |
| Knight-Swift Transportation | 10.98 | 9.90 | 10.21 | 10.55 | 9.79 | 51.43 |
| Allen Lund Company | 9.94 | 11.25 | 10.44 | 10.55 | 8.90 | 51.08 |
| DB Schenker Americas | 10.55 | 9.75 | 11.14 | 9.85 | 9.79 | 51.07 |
| CEVA Logistics | 10.40 | 10.50 | 11.02 | 9.50 | 9.54 | 50.95 |
| DHL Supply Chain | 10.37 | 10.50 | 10.27 | 9.04 | 10.27 | 50.46 |
| Kuehne + Nagel | 10.27 | 10.69 | 10.83 | 10.25 | 8.34 | 50.38 |
| Saddle Creek Logistics Services | 9.94 | 11.25 | 9.28 | 8.44 | 11.13 | 50.04 |
| Capstone Logistics | 10.33 | 12.00 | 10.44 | 8.44 | 8.90 | 50.11 |
| AFS Logistics | 9.04 | 10.50 | 10.83 | 10.55 | 8.90 | 49.82 |
| Crowley Logistics | 11.30 | 10.13 | 10.28 | 8.28 | 8.91 | 48.90 |
| AVERAGE | 10.12 | 9.97 | 10.08 | 9.02 | 9.70 | 48.89 |
Source: Logistics Management, Peerless Research Group (PRG)
(Bold indicates leader in attribute category)
| Carrier Selection/negotiation | Order fulfillment | Transportation distribution | Inventory managment | Logistics information systems | Weighted score | |
| APL Logistics | 10.67 | 10.31 | 9.97 | 11.41 | 10.56 | 52.93 |
| Ryder System, Inc. | 11.68 | 11.37 | 9.82 | 9.51 | 10.27 | 52.63 |
| UPS Supply Chain Solutions | 10.51 | 10.31 | 11.53 | 9.33 | 10.56 | 52.24 |
| NFI | 10.01 | 9.72 | 12.08 | 9.66 | 10.56 | 52.03 |
| Geodis | 9.92 | 10.31 | 11.33 | 10.66 | 9.53 | 51.76 |
| FedEx Supply Chain | 11.04 | 10.31 | 10.07 | 9.88 | 9.90 | 51.20 |
| DB Schenker Americas | 10.51 | 10.61 | 10.87 | 9.88 | 8.80 | 50.67 |
| Saddle Creek Logistic Services | 10.49 | 11.05 | 10.26 | 9.80 | 8.80 | 50.40 |
| Penske Logistics | 10.54 | 10.71 | 10.57 | 9.78 | 8.75 | 50.35 |
| AVERAGE | 10.50 | 9.85 | 10.20 | 9.55 | 10.20 | 50.30 |
Source: Logistics Management, Peerless Research Group (PRG)
