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A freight market recession, compressed broker margins and a spate of high-profile acquisitions during the past year have significantly altered the competitive landscape for North America’s largest third-party logistics providers.
While the freight downturn and industry consolidation both left their mark on Transport Topics’ 2024 Top 100 Logistics Companies list, the most notable change to this year’s ranking is a new name at the very top.
For the first time, this list includes the logistics operations of e-commerce behemoth Amazon.com Inc., which easily claims the No. 1 spot in its debut.
The world’s largest online retailer offers a range of third-party logistics and supply chain management services to businesses selling their wares on Amazon.com as well as other e-commerce platforms.
Amazon Warehousing and Distribution provides bulk storage and inventory management, Fulfillment by Amazon handles e-commerce fulfillment for orders placed on Amazon.com, and the company’s Multi-Channel Fulfillment service provides order fulfillment for outside sales channels, including brand websites, other e-commerce marketplaces and social media sites.
In addition, Amazon provides truckload freight brokerage to shippers of all sizes through its Amazon Freight division. The company also offers parcel, less-than-truckload, truckload and intermodal transportation options for inbound shipments to Amazon facilities through its Partnered Carrier Program, as well as an ocean freight option for shipments from China through Amazon Global Logistics. Image Clevenger
Amazon reported more than $140 billion in sales last year from its third-party seller services, including commissions and related fulfillment and shipping fees. That sum represents nearly a quarter of the company’s total revenue.
While Amazon continued to expand its 3PL operations last year, that was not the case for the vast majority of companies on TT’s updated Top 100 list of logistics providers.
More than three-quarters of the companies listed saw their revenues decline in 2023 compared with the prior year as excess freight hauling capacity continued to tamp down freight rates.
International freight forwarders generally experienced the most dramatic slowdown.
Expeditors International of Washington, for instance, dropped to No. 7 on the list from No. 2 a year ago as its revenue fell more than 45%, while Kuehne + Nagel Americas slipped to No. 6 from No. 3 as revenue decreased by 41%.
Freight brokers also saw their revenue and margins weaken last year amid soft market conditions.
In January, parcel delivery and logistics giant UPS Inc. said it was exploring the sale of its Coyote Logistics truck brokerage business, which it acquired for $1.8 billion in 2015, although no further action had been announced as of press time in early April. The company’s logistics division, UPS Supply Chain Solutions, held steady at No. 4 on the Top 100 list.
Meanwhile, major acquisitions continued to make waves in the 3PL industry. See the 2024 Top 100 rankings ►Amazon Takes No. 1 Spot on Top 100 List ►When Will Freight Market Conditions Improve? ►Map: Where the Top 100 Are ►Armstrong: A Year to Forget for 3PLs ►Logistics Market Faces Challenges Across Segments Sector Rankings Freight Brokerage | Dedicated Dry Storage Warehousing Refrigerated Warehousing Ocean Freight | Airfreight
►Amazon Takes No. 1 Spot on Top 100 List ►When Will Freight Market Conditions Improve? ►Map: Where the Top 100 Are ►Armstrong: A Year to Forget for 3PLs ►Logistics Market Faces Challenges Across Segments
Sector Rankings Freight Brokerage | Dedicated Dry Storage Warehousing Refrigerated Warehousing Ocean Freight | Airfreight
In September, No. 3 J.B. Hunt Transport Services purchased the freight brokerage operations of BNSF Logistics, an affiliate of BNSF Railway that had ranked No. 78 on the Top 100 a year ago.
Refrigerated warehousing giant Lineage Logistics, which climbed eight spots to No. 15 on the updated Top 100, expanded its network in the eastern and midwestern U.S. by acquiring eight cold storage facilities from Burris Logistics in October.
Burris, meanwhile, retains its Trinity Logistics business, a freight brokerage and transportation management provider that ranks No. 59 on the list.
In February, truck leasing and logistics firm Ryder System completed its acquisition of dedicated contract carrier Cardinal Logistics for $290 million. The addition of Cardinal, which ranked No. 63 on last year’s Top 100, bolstered No. 8 Ryder’s already-extensive dedicated transportation business with 200 additional locations and 2,900 power units.
Late last year, dedicated contract carrier and logistics firm Canada Cartage entered the U.S. market through its acquisition of The GTI Group, a provider of freight brokerage, transportation management, expedited freight and other logistics services. The combined company ranks No. 62.
In yet another example of industry consolidation, expedited less-than-truckload carrier Forward Air completed its acquisition of Omni Logistics in January. The merged business ranks No. 31 on the Top 100.
A notable departure from this year’s list is digital freight broker Convoy, which ranked No. 54 a year ago. The venture capital-backed company, founded in 2015, cited the freight recession and challenging financial conditions when it closed its doors and laid off most of its staff in October.
Soon afterward, however, freight forwarder and logistics technology firm Flexport acquired Convoy’s technology and intellectual property and went on to relaunch the Convoy platform in February. Flexport ranks No. 42 on the Top 100.
Another departure from the logistics ranking is U.S. Xpress Enterprises, which was No. 62 on last year’s list. Knight-Swift Transportation, which now ranks No. 37, completed its acquisition of U.S. Xpress in July 2023 in a transaction that not only increased the size of the industry’s largest truckload carrier but also combined two Top 100-level logistics operations. Image J.B. Hunt moved two spots up the list to No. 3 on this year's TT100. (J.B. Hunt Transport Services)
J.B. Hunt moved two spots up the list to No. 3 on this year's TT100. (J.B. Hunt Transport Services)
A new name on the list this year is No. 19 WWEX Group, the new unified corporate identity of Worldwide Express, GlobalTranz and Unishippers. Worldwide Express acquired GlobalTranz in 2021 and Unishippers in 2017. The combined company will continue to use all three brands in the market.
In addition to Amazon at the top, several other companies made their debut on the Top 100 this year, including No. 27 PSA BDP, a freight forwarder and supply chain management firm; No. 94 RPM, a 3PL specializing in vehicle transportation; No. 96 FitzMark, a multimodal freight broker; and No. 100 TCI Transportation, a dedicated contract carrier and freight brokerage provider.
The freight brokerage and logistics operations of truckload carrier Bison Transport and less-than-truckload hauler Averitt Express also join the list at No. 91 and No. 98, respectively.
The TT Top 100 Logistics Companies list ranks the largest logistics firms in North America based on annual gross revenue generated by their logistics services, including freight brokerage, transportation management, freight forwarding, warehousing and asset-based dedicated contract carriage.
Transport Topics produced this Top 100 list and the accompanying industry sector rankings in collaboration with 3PL research and consulting firm Armstrong & Associates, which provided estimates for some revenue figures in cases where data was not available from company management or public sources.
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