Amazon has emerged as the foremost North American third-party logistics (3PL) provider, making a significant debut at the top of the Transport Topics’ 2024 Top 100 Logistics Companies list. This shift in standings comes amid a challenging period characterized by a freight market downturn, shrinking broker margins, and notable acquisitions, reshaping the landscape for North America’s major 3PLs.
For the first time, Amazon.com Inc.’s logistics operations have been recognized on this prestigious list, clinching the top spot with ease. As the largest online retailer globally, Amazon offers comprehensive third-party logistics and supply chain management solutions. These services cater to various sellers on Amazon.com and other digital commerce platforms, enhancing their operational efficiency.
The company’s logistics services include Amazon Warehousing and Distribution, which manages bulk storage and inventory, and Fulfillment by Amazon, which oversees the fulfillment of e-commerce orders. Additionally, its Multi-Channel Fulfillment service handles order fulfillment across external sales channels such as independent brand websites, other e-commerce marketplaces, and social media platforms.
Amazon also extends its logistics capabilities to truckload freight brokerage through Amazon Freight, providing diverse shipping options like parcel, less-than-truckload, truckload, intermodal, and ocean freight services, the latter facilitating shipments from China via Amazon Global Logistics.
In the previous year, Amazon’s third-party seller services alone generated over $140 billion in sales, accounting for nearly a quarter of the company’s total revenue. Despite the expansion of Amazon’s 3PL operations, the broader list saw a downturn, with more than three-quarters of the companies witnessing a drop in revenue due to excess freight capacity and declining freight rates.
Notable changes in the rankings include Expeditors International of Washington, which plummeted from second to seventh place as its revenue fell by over 45%, and Kuehne + Nagel Americas, which moved down to sixth from third due to a 41% reduction in revenue.
While some companies experienced declines, others like J.B. Hunt Transport Services, which acquired BNSF Logistics’ freight brokerage operations, rose to third place. The industry also saw significant movements through acquisitions, such as Ryder System’s purchase of Cardinal Logistics and Canada Cartage’s entry into the U.S. market by acquiring The GTI Group.
Other notable entries into the Top 100 this year include WWEX Group at number 19, following its unification of Worldwide Express, GlobalTranz, and Unishippers, as well as PSA BDP, RPM, FitzMark, and TCI Transportation, marking their debut on the list.
This ranking, produced by Transport Topics in collaboration with Armstrong & Associates, highlights the top logistics firms in North America based on the gross revenue from their logistics operations, offering insights into the evolving dynamics of the 3PL industry.
