How Big Is The Logistics Industry?

The logistics industry size is enormous, contributing up to 10% GDP ($2 trillion) in the U.S. & about 12% ($9.6 trillion) globally. The projected growth rate is 5% through 2023. 3PLs are handling more now as well, $213.5 billion in gross revenue in 2018, doubling 2009.

 

Logistics Industry Size: Annual Estimates Range From $8 Trillion To $12 Trillion

The global logistics industry size is enormous. The industry contributes up to 10% GDP in the United States and about 12% of the global GDP. Economic industry indicators saw the logistics market closing in at $2 trillion in 2019. Worldwide, the market reached $9.6 trillion in 2018.

The projected growth of total global logistics costs is strong, with costs expected to grow at a compounded annual growth rate of 5% through 2023. Due to this rate, some intelligence firms estimate that the global logistics industry will exceed $15 trillion by then.

United States business logistics costs exceeded $1.6 trillion in 2018, with transportation making up nearly two-thirds of this total. The majority of transportation costs arose from trucking, with e-commerce parcel transportation coming in second and rail in third place.

Third-party logistics providers (3PL) are handling significantly more distribution, fulfillment and inventory than in previous years. As a result, the 3PL market generated $213.5 billion in gross revenue in 2018 – nearly doubling the gross revenue reported for 2009.

 

FMI Is Ranked Among The Best

Given the massive logistics industry size, it would be easy for any 3PL to get lost in the crowd. Due to its comprehensive service offerings and proprietary technology, Freight Management, Inc. (FMI) has made quite an impact with customers who need a 3PL. In fact, the company was ranked as a Top Freight Brokerage Firm by Transport Topics.

FMI provides first mile, middle mile, final mile, and extra mile services that reduce shipment costs and improve operation management for our clients. We also offer cutting edge technology including:

  • My Freight Manager┬« TMS – A web-based system that gives users shipment visibility and reporting via a flexible, intuitive and user-friendly interface
  • Draydex™ – A TMS extension that gives users free access to the most accurate drayage spot market index in the industry and real-time pricing
  • FMITrack™ – A web-based order tracking system that gives users free updates on the status of their shipments and is free for carriers

Backed by over 40 years of experience, FMI handles more than 12,000 drays every year for 80% of the Top 25 forwarders. We offer clients the reassurance of $2M cargo and auto liability and $250,000 cargo coverage, insurance coverage that exceeds the industry standard of $1M cargo and auto liability and $100,000 cargo coverage. Plus, we are a member of TIA with a $100,000 surety bond.

Would you like to know how our services can benefit your company? You can learn about the savings and management efficiencies our clients have enjoyed here.

Put your transportation budget and management in the capable hands of a 3PL ranked among the top in the logistics industry. Contact Freight Management, Inc. today.

 

When You Trust Your Shipments To The Best, You Get The Best Rate!