Logistics News

TIA reports strong annual gains for Q4 brokered shipment activity

Total third quarter invoice revenue for all TIA member study participants—at around $2.8 billion—was up 17% percent annually, and total shipments—at 1,439,237—increased 7.8%. The average invoice per shipment of $1,951 rose 8.5%, with profit margin percentage down 100 basis points to 14.6 percent.…

The most recent edition of the Transportation Intermediaries Association’s (TIA) 3PL Market Report, which covers the fourth quarter and was released this week, showed decent annual growth for key brokered freight transportation metrics. 

This is the 37th edition of this report, which is based on monthly data from TIA member companies who submit real operating data and respond to questions on business conditions impacting the 3PL sector. Types of questions that the member companies’ answers include: number of shipments by mode, total billing, and gross margins. Other data collected are customer-based forecasts to offer up expectations of near-term business volume. And this report represents more than 1.4 million shipments and more than $2.5 billion in total revenue for the third quarter of 2017, according to TIA.

Total third quarter invoice revenue for all TIA member study participants—at around $2.8 billion—was up 17% percent annually, and total shipments—at 1,439,237—increased 7.8%. The average invoice per shipment of $1,951 rose 8.5%, with profit margin percentage down 100 basis points to 14.6 percent.

Key fourth quarter metrics by mode included:

  • Truckload: shipments up 7% annually at 989,255, with invoice amount per load up 9.7% at $1,679, profit margin per load up 14.5% at $248, and profit margin percentage up 60 basis points at 14.7%;
  • Less-than-truckload: shipments up 14.6% annually at 131,436, invoice amount per load up 9.3% percent at $423, profit margin per load up 10.4% percent at $82, and profit margin percentage up 20 basis points at 19.4%; and
  • Intermodal: shipments—at 274,177—were down 3.6% annually, with invoice amount per load up 7.2% at $3,094, and profit margin percentage down 40 basis points at 8.6%

On a sequential basis from the third quarter to the fourth quarter, TIA’s survey data indicated that total shipments rose 0.8% to 1,439,237, total revenue headed up 8.6% to $2,808,478, invoice amount per shipment increased 7.8% to $1,951, and profit margin percentage fell by 90 basis points to 14.6%.

“The market really seems to be in a decent place,” said Tom Malloy, TIA vice president of membership, in an interview. “The truckload segment represents the lion’s share of margin improvement annually for the fourth quarter at 14.5%, which is impressive. That is a big deal, as is the relative flatness of intermodal, too.”

Malloy said that the 17% annual increase in total revenue did somewhat stand out from other metrics, adding that it bodes well for 3PLs.

“3PLs are not asset-based so when they are seeing the uptick that means that carriers loads are largely moving through a 3PL,” he said. “Seeing that uptick means that more 3PLs are involved in the securing of these interline transportation services. It also means they are doing a better job overall and are able to offer capacity from multiple carriers and expand their service portfolio.”

On an anecdotal basis, Malloy said business activity seemed to be a little bit flatter in the first quarter of this year.

One finding separate from the aforementioned data was a question asking TIA members if ELD are starting to have an impact on their truckload or drayage businesses, on a ranking of 1-5, with 5 being the highest.

Nearly 45% of respondents said ELD were having an impact. Malloy said that was telling on the drayage side, as drayage has a lot of flexibility compared to traditional over the road trucking.


Article Topics
3PL   Intermodal   LTL   TIA   truckload   All topics


Comments
You must be logged in to post a comment. Login.

About the Author
Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
 
Latest Logistics News
SEKO Logistics Expands Full Assembly White Glove Service
SEKO Logistics will mark their title sponsorship of this week’s Home Delivery World expo in Atlanta by launching the latest expansion of their White Glove delivery service - full assembly, nationwide…

SMC³ Announces Connections 2018 Speaker Lineup
DHL Supply Chain’s Alex Jackson, Andy Smith, the chief operating officer of FedEx Supply Chain, John Wiehoff, CEO of C.H. Robinson, and basketball legend Jerry West are scheduled to speak at SMC³’s…

3Gtms Expands Partnership with SMC³ for Less-than-Truckload Rating and Transit Data
Fully integrated into the 3Gtms transportation management system, SMC³’s API solutions give customers more accurate and timely rating and transit-time information, as well as broader pricing visibility.

SMC³ joins the Blockchain in Transport Alliance
By joining the Blockchain in Transport Alliance, SMC³ is supporting the group’s myriad technology goals, which include developing and disseminating blockchain standards that the industry can use to…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles