U.S. Third-Party Logistics (3PL) Market Size Estimates

Since 1994, Armstrong & Associates has been estimating the size of the Third-Party Logistics (3PL)/Contract Logistics Market and its segments. 3PL Market gross revenues for 2023 are provided below.

U.S. 3PL/Contract Logistics Market
 3PL Segment

2023

Gross Revenue/Turnover

(US$ Billions)
 Dedicated Contract Carriage
 29.7
 Value-Added Warehousing and Distribution
 68.1
 International Transportation Management
 74.0
 Domestic Transportation Management
 123.6
Contract Software/Systems
 4.1
 Total
 299.5

Definitions/descriptions of the four main 3PL Market segments are:

  1. Dedicated Contract Carriage (DCC): 3PLs that provide dedicated contract carriage services supplying tractors, drivers, and management. Trailers are usually included. Contract terms are 1-7 years.
  2. Value-Added Warehousing and Distribution (VAWD): 3PLs providing long-term contract warehousing or distribution center operations with various value-adds.
  3. International Transportation Management (ITM): 3PLs that provide non-asset-based value-added international transportation management services. Services are usually performed in conjunction with freight forwarding and are often contractual.
  4. Domestic Transportation Management (DTM): 3PLs providing non-asset-based value-added transportation management services dealing mainly with shipments originating in and destined for North American points. Services are usually performed in conjunction with freight brokerage and are often contractual.


The DTM sub-segments are:

  • DTM/Freight Brokerage – When a non-asset-based 3PL manages transportation on behalf of a shipper with carriers within North America. Business is conducted via phone, email, or interfaces between a shipper’s systems, freight broker’s Transportation Management System (TMS), and carrier TMS. In the United States, a freight broker is licensed by the Federal Motor Carrier Safety Administration (FMCSA). The freight broker generates a gross profit or loss on each shipment managed, the difference between gross revenue from a shipper and purchased transportation paid to a carrier.
  • DTM/Intermodal – When a 3PL manages combined truck and rail transportation (multiple transportation modes) between shippers and carriers within North America. The Intermodal Marketing Company (IMC) 3PL purchases capacity directly from railroads and carriers to provide shippers with intermodal service. The IMC utilizes equipment from multiple sources to offer intermodal capacity while bringing other value-added services under a single freight bill to the ultimate shipper, the Beneficial Cargo Owner (BCO).
  • DTM/Managed Transportation – When a non-asset-based 3PL manages transportation between shippers and carriers within North America using a systems-based TMS and automation/optimization approach for transportation planning, carrier selection, tendering, and routing (transportation execution), and in-transit visibility. The process often manages transportation from multiple shipping locations of a shipper and frequently includes Less-than-Truckload (LTL) to Truckload orders to optimize shipment cost/transportation service performance. Revenues are typically generated via a management fee, such as a flat amount per shipment or a percent of the purchased transportation. They may include gainshares where transportation savings are shared between the shipper and 3PL.
  • DTM/Last-Mile Delivery – Is the transportation of shipments from the last warehouse or terminal to the final consignee for commodities such as furniture/mattresses, appliances, electronics/high-tech, exercise equipment, construction materials, industrial machinery, or medical equipment to a destination within North America where they will be used or consumed. These shipments can include small packages that are brokered or managed. Transportation is most often performed using independent contractor drivers or freight brokerage-managed shipments. These can be business-to-business (B2B) or business-to-consumer (B2C) shipments.


A&A’s “Who’s Who in Logistics” 3PL Profiles include Total Logistics Revenues covering all four main 3PL Market segments and DTM sub-segment revenues as follows:

Freight Brokerage Revenue = Freight Brokerage and Intermodal

DTM Revenue = Freight Brokerage, Intermodal, Managed Transportation, and Last-Mile Delivery

Total Logistics Revenue = DTM, DCC, VAWD, and ITM

(updated March 6, 2025)

 

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