Freight flights from Canada to Guyana
Jun 12, 2026 at 9:08 AM
Keimelmayr joins Lagermax
Jun 12, 2026 at 10:04 AM
The US third-party logistics (3PL) industry underwent a remarkable development in 2025, characterized by uncertainties regarding tariffs and trade agreements. According to a recent analysis by Armstrong & Associates (A&A), net revenues in the US 3PL market increased by 5.1% to $138 billion, following moderate growth of 1.8% in 2024. Gross revenues across all segments of the 3PL market saw a year-over-year increase of 5%, significantly above the 2.8% growth from the previous year. Overall, the value of the US 3PL market for 2025 is estimated at $323.4 billion.
Market development and challenges
Uncertainties in the trade environment, particularly regarding tariffs, have led to an increase in demand for 3PL services. Companies are attempting to restructure their supply chains through nearshoring and reshoring, which has heightened the demand for logistics services, especially on cross-border routes. Despite these challenges, there is a silver lining: the US Supreme Court declared the IEEPA tariffs illegal, leading to a stabilization of the global tariff rate at around 11%. This predictability could help importers better adjust to market conditions.
However, the macroeconomic situation remains tense. Consumer sentiment is weak, while spending in the services and non-durable goods sectors remains stable. Rising gasoline prices, driven by the ongoing conflict with Iran, could further strain consumer purchasing power and lead to stagnation. Signs indicate that the freight recession, which began in late 2022, is coming to an end. The capacity of contracted motor carriers has significantly decreased as smaller providers have exited the market.
Segment analyses and outlook
The US 3PL market is divided into four main segments: Dedicated Contract Carriage (DCC), Value-Added Warehousing and Distribution (VAWD), International Transportation Management (ITM), and Domestic Transportation Management (DTM). The ITM segment experienced the fastest growth in 2025, with gross revenues increasing by 7.7% to $85.9 billion. Net revenues rose by 11% to $30.4 billion. This development is attributed to uncertainties related to tariffs and trade wars, prompting importers to source their goods ahead of potential tariff increases.
In the DTM segment, which represents the largest subcategory, gross revenues increased by 4.5% to $128.3 billion. Net revenues grew by 3% to $19.6 billion. Market conditions are showing early signs of recovery, as spot prices rise and tenderable rejections increase. The DCC segment, focusing on long-term contracts, grew by 1.6% to $32 billion.
The VAWD segment, specializing in long-term warehousing and distribution services, showed growth of 4.4% to $72.7 billion. This stability is due to the ongoing demand for flexible warehousing solutions, driven by the need to build inventory.
Technological developments and M&A activities
Digitalization in the 3PL sector is increasing, with many providers investing in technologies to optimize their services. Automated systems for documentation and compliance are gaining importance, while large providers gain a competitive advantage through technological innovations. M&A activities in the 3PL sector are also on the rise, with significant transactions exceeding $100 million increasing. In 2025, 15 such deals were completed, including the acquisition of DB Schenker by DSV for $15.9 billion.
In summary, the US 3PL market is undergoing a phase of stabilization and growth in 2025 while simultaneously facing the challenges of a changing trade environment and technological changes.
