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April 11, 2007 5:00 PM, EDT

3PL Revenue Tops $110 Billion

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U.S. third-party logistics gross revenues topped $110 billion for the first time last year, according to a report on the 3PL industry released this week.

3PL gross revenues were $113.6 billion in 2006, a 9.5% increase, according to the report released by Armstrong & Associates.

The global 3PL market was estimated at $391 billion, with European revenues at about $139 billion. Margins for the year were down slightly due to the fourth-quarter economic slowdown, Armstrong said.

The report gave the following breakdown of U.S. 3PL industry sectors:

Domestic transportation management: Gross revenue of $33.8 billion, net revenue of $6.6 billion, net revenue growth of 12% and net income (profit) margin of 11.1%.

International transportation management: Gross revenue of $42.2 billion, net revenue of $15.9 billion, net revenue growth of 17.7% and a profit margin of 5.7%.

Dedicated contract carriage: Gross revenue of $11 billion, net revenue of $10.9 billion, net revenue growth of 8% and a profit margin of 4.4%.

Value-added warehouse/distribution: Gross revenue of $23.4 billion, net revenue of $19.7 billion, net revenue growth of 9.7% and a profit margin of 3.9%.

There was an extra $3 billion included for the contract logistics software segment, to put the total gross revenue at $113.6 billion.