🏆 Top 10 Domestic Transportation Management 3PLs

Good Monday morning. Today, we spotlight the top 10 domestic transportation management companies from Armstrong & Associates' Top 100 list. Dive into an analysis of the growing role of brokers in altering the traditional freight cycle and the increasing economic concerns of carriers. Plus, the global defense sector hasn't seen this much freight since the Cold War era. Also, don't miss our brief on recent shutdowns leaving drivers unpaid.

In today's email:

• Three Freight Headlines: Freight brokers reshape the traditional freight cycle, carriers rank the U.S. economy as their top concern, and global defense sectors adjust to rising tensions.
• Top 10 Domestic Transportation Management 3PLs
• Around the Freight Web: Trucking employment signals potential recession, sudden carrier shutdowns disrupt payments, 2024's supply chain conferences return, plus more.
• Freight Meme of the Day

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

*Greenscreens.ai forecasts real-time truckload buy prices that are suited to each freight brokerage's purchasing power using AI and machine learning. Its engine takes into account over 130 attributes and data points in each rate forecast.

🐔 WHAT’S COOKIN’ IN FREIGHT

📈 Freight Brokers' 20-Year Surge. In a tweet by Craig Fuller, he spotlighted the evolution of the trucking industry over two decades. Freight brokers, once handling just 6% of all freight, now manage over 20%. Their advancements in technology and customer service have made them go-to choices for shippers. Meanwhile, small trucking firms, despite challenges, have grown in number, significantly driven by the support of these freight brokers. The market anticipates a balancing period in the upcoming 78 weeks.

🏦 The Economy is Trucking's Top Worry. A recent report by the American Transportation Research Institute highlighted the fluctuating U.S. economy as the primary concern for carriers, a sentiment not felt this strongly since the 2008 Great Recession. Previously dominant concerns, like fuel prices, have been displaced. The perennial issue of truck parking claims the second spot, with drivers spending on average 56 minutes daily hunting for parking. Zero-emission vehicles make their debut on the list, reflecting the industry's growing environmental awareness.

🌍 Global Defense Industries React to Geopolitical Tensions. The U.S. is ramping up artillery shell production from 28,000 to 100,000 rounds per month and transitioning from ATACMS to Precision Strike Missiles. In contrast, Germany's weapon production has soared by 60%, driven by Rheinmetall's backing for Ukraine against Russia's aggression. The ongoing conflicts and depleting Western ammo reserves are reshaping global arms production. Highlighting this trend, Poland has made substantial orders for HIMAR rocket launchers. As the landscape becomes more active, suppliers of military components and chemicals should anticipate a Cold War-era demand surge.

TOGETHER WITH RAPIDO

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See what makes nearshoring to Mexico an attractive option for scaling a logistics company and how partnering with Rapido Solutions Group simplifies the whole process.

Armstrong & Associates Inc. recognized the Top 100 Domestic Transportation Management (DTM) 3PLs, shining a spotlight on those at the peak of their game for 2023. Here are the top 10, ranked by 2022 gross DTM revenue.

Freight Broker vs. Transportation Management: A freight broker connects shippers with carriers to move goods, while transportation management involves overseeing and optimizing the entire process of transporting goods from start to finish. Therefore, many transportation management companies are also freight brokers, but not all freight brokers are transportation management companies. If you would like to learn more about managed transportation, check out this recent podcast episode of ours.

1) C.H. Robinson: Eden Prairie, MN – $17,062.0M

• A titan in the logistics realm, C.H. Robinson brings to the table a vast network and a legacy of trust, making them an undisputed leader in the DTM space. The company recently opened a new facility to speed up trade across the Mexico border.

2) Total Quality Logistics: Cincinnati, OH – $8,745.0M

• TQL has shown consistent growth, evidenced by a $78M investment in Cincinnati the previous year and a planned $370K investment in St. Louis for 2023.

3) Uber Freight: San Francisco, CA – $6,947.0M

• A division of the global ride-hailing service Uber, Uber Freight focuses on connecting shippers and carriers through its digital platform. Capitalizing on its acquisition of Transplace, the company recently unveiled a comprehensive overhaul of its tech.

4) Transportation Insight: Hickory, NC – $6,410.0M

• Transportation Insight Holding Company is a combination of
  Transportation Insight (TI) and Nolan Transportation Group (NTG).

5) Coyote Logistics: Chicago, IL – $5,200.0M

• A subsidiary of UPS, the company recently announced the departure of Jonathan Sisler as CEO, who was replaced by Sandeep Pisipati, former CFO.

6) Worldwide Express: Dallas, TX – $4,900.0M

• Worldwide Express focuses on small and medium-sized businesses. Operating with over 60 locations and a team of 1,400, the company expanded its reach by merging with GlobalTranz in 2021.

7) RXO: Charlotte, NC – $4,513.0M

• Emerging in the Digital Transport Management (DTM) sector, RXO has shown rapid growth, highlighted by its reported double-digit brokerage volume increase in Q2 2023.

8) Hub Group: St. Louis, MO – $4,222.0M

• Hub Group, known for its multi-modal transportation solutions, has expanded its logistics segment through a series of acquisitions. Notably, the company added NonstopDelivery in 2020, Choptank Transport in 2021, and Tagg Logistics in 2022.

9) Echo Global Logistics: Chicago, IL – $4,175.0M

• In 2021, after being public for 15 years, Echo Global Logistics was acquired by New York private equity firm The Jordan Co. for $1.3 billion. Post-acquisition, Echo transitioned to a private company.

10) Landstar: Jacksonville, FL – $4,140.0M

• Operating with a distinctive agent-based business model, Landstar offers customized transportation solutions. The company's performance in the logistics and transportation industry earned it a spot on the Fortune 500 list for 2023, ranking #489.

For the full Top 100 ranking, visit Armstrong & Associates website to view all the companies that made the list.

TOGETHER WITH ISOMETRIC TECHNOLOGIES (ISO)

Today's newsletter is also brought to you in collaboration with ISO, the industry leader in delivering unparalleled transparency and reliability in logistics performance through their one-of-a-kind scoring system.

AROUND THE FREIGHT WEB

📉 Trucking Trend Alert. Trucking employment dips historically precede recessions. A worrisome chart indicates this decline will steepen as more carriers are yet to exit the market.

🚚 Sudden Trucking Shutdowns. Recent unexpected closures at Meadow Lark and Sunset Logistics leave truckers and carriers awaiting thousands in overdue payments. Publically, leadership remains silent on the issues.

🎙️ 2024 Supply Chain Conferences. Here are 2024's top supply chain events and networking opportunities.

📦 New Distribution Centers. Walmart and REI are launching state-of-the-art distribution centers. Both aim to enhance order efficiency and speed, leveraging innovations like robotics and advanced sorting systems.

🤖 Autonomous Trucking Milestone. Maersk partners with Kodiak Robotics to launch the first commercial autonomous trucking lane between Houston and Oklahoma City.

💊 Rite Aid Goes Bust. Facing multiple lawsuits and dwindling sales, Rite Aid files for bankruptcy, signaling tumult in the pharmacy sector.

FREIGHT CONFERENCES WE'RE ATTENDING

• Feb. 5th-7th, 2024: Manifest Vegas, February 5 - 7, 2024, is the world's largest global supply chain & logistics tech event, bringing together Fortune 500 global supply chain executives, logistics service providers, cutting-edge startups, venture investors, and technology leaders.  Join 4,500+ supply chain innovators to foster new strategies and relationships. Receive $200 off your ticket with our exclusive link.
• November 7th-9th, 2023: F3, taking place in Chattanooga, TN November 7th-9th. The heart of Freight Alley and home to FreightWaves—will come alive once again with the largest festival in freight November 7-9, 2023. Bringing together experts, entrepreneurs, industry leaders, educators and more to discuss the key factors impacting freight markets and the latest trends pushing our industry forward. Receive $500 off your ticket with our exclusive link.

FREIGHT MEME OF THE DAY

Also, check out:

• 🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
• ☕️ FreightCaviar Fall Essentials: purchase a FreightCaviar sticker, hoodie, long-sleeve, or mug by clicking here. Use code FC10 to receive a 10% discount.
• 🤝 Master the essentials of freight brokering with Freight360's comprehensive online course, tailored for both aspiring brokers and current agents looking to enhance sales and operations. Receive $150 off your course with our code FREIGHTCAVIAR. Click here to learn more.