Dick Armstrong, chairman and CEO of Armstrong & Associates, Inc.--a supply chain market research and consulting firm specializing in 3PL market research--said his most recent survey paints a complex picture.
“After 11 modest months in 2008, third-party logistics revenues dove in December and have remained depressed in 2009,” he said in a statement. “While a few third-party logistics providers (3PLs) could drown, most are treading water and some are swimming strongly.”
Armstrong’s analysis shows gross revenue (turnover) for 3PLs down by 8.8 percent for 2009. Net revenues (gross margins) were less impacted for many non-asset transportation managers and leading value-added warehousing 3PLs.
Expeditors, C.H. Robinson, Kuehne + Nagel and other major transportation managers report net revenues decreased 3 percent to 10 percent. Earnings before interest, tax, depreciation and amortization (EBITDAs) and earnings before interest and tax (EBITs) fell proportionately. Additionally, net revenues are expected to be down another 5 percent this year for the transportation management group.
Read the rest of the article from logisticsmgmt.com here.
