Top third-party logistics (3PL) companies in the US by market cap
Choosing the right third-party logistics (3PL) provider can make or break entire supply chains. The top 3PL providers in the US offer a range of services that can significantly streamline operations, from warehousing and distribution to transportation management and beyond.
Understanding what makes the best companies in the 3PL industry can help you make informed decisions when choosing your provider.
Read this article to learn about the leading 3PL firms and see the ranking of the top nine in the USA.
Qualities of the best third-party logistics providers
Understanding the landscape of 3PL providers is crucial for businesses that rely on efficient transport. The biggest 3PLs in the US are recognized for their innovative solutions, extensive networks, and commitment to customer service.
They utilize advanced technology to provide real-time tracking, optimize routes, and manage inventory, ensuring that their clients' goods are delivered accurately and on time.
A significant share of the market is dominated by big players like Amazon, C.H. Robinson, or DHL, but contender companies like Echo Global Logistics, ShipBob, or Quiet Platforms are gaining traction and have won the trust of thousands of customers.
The best companies provide end-to-end services and focus on their networks to build their net of influence. Another key area is technology, which makes them more efficient.
End-to-end solutions
The top 3PL companies often offer end-to-end solutions, meaning they can handle every aspect of the logistic process. This simplifies the fulfillment process for businesses, reducing the need for multiple logistics solutions and ensuring a seamless flow of goods.
Companies like DHL Supply Chain and UPS are prime examples of companies that provide integrated logistics services that cover transportation, warehousing, and distribution.
Advanced technology
Technology plays a prominent role in the 3PL space. Leading 3PL providers in the US utilize software to enhance visibility and control over the fulfillment process. These technologies include real-time tracking, automated inventory management, warehouse management systems, and route optimization algorithms.
For instance, XPO Logistics leverages its proprietary technology platform to offer real-time insights and analytics, enabling more efficient transportation management. These technological advancements streamline operations and reduce errors, making the shipping process more reliable.
Focus on meeting customer expectations
Customer service is another critical factor. The best 3PL companies are known for their customer-centric approach. Providing personalized customer service tailored to their business clients' specific needs allows the leading 3PL to retain clients regardless of increased competition.
Companies like C.H. Robinson and Ryder are well-regarded for their commitment to understanding their customers' business objectives and delivering solutions that align with those goals.
Consistent communication and responsiveness to inquiries and concerns ensure that your customers feel supported and safe across the order fulfillment process.
Extensive networks
Extensive networks are a hallmark of top 3PLs. These shipping carriers' robust transport and distribution networks allow them to offer reliable and cost-effective 3PL services.
For example, FedEx leverages its extensive global network to provide efficient and scalable international transportation management tools for businesses of all sizes.
An extensive network enhances delivery speed and reliability and provides flexibility to handle unexpected disruptions or changes in demand.
Top third-party logistics companies ranking by market cap
This ranking of US largest 3PL providers is based only on their market cap as of October 7th, 2024. The data comes from the Companies' Market Cap website, individual companies’ websites, and LinkedIn.
However, in the description of each top 3PL provider, you will find relevant, interesting facts about these companies and the estimated size of their workforce.
Without more ado, here are the top 9 US-based 3PLs - ranked by their market cap:
1. Amazon (AMZN)*
Market capitalization: $1.957 Trillion (source)
Employees on LinkedIn: 715,080
Amazon is a global e-commerce giant founded in 1994 by Jeff Bezos, offering a vast range of products and services, including cloud computing, streaming, and artificial intelligence.
Its 3PL and related fulfillment services are a crucial component of Amazon Logistics and Fulfillment by Amazon department (FBA). Through FBA, sellers can keep their inventory in Amazon’s centers, where the organization manages storage, picking, packing, and shipping to customers.
The market leader also offers transportation management, manages last-mile delivery, and handles returns.
Additionally, Amazon Multi-Channel Fulfillment (MCF) is a 3PL e-commerce fulfillment space that helps its partners in fulfilling orders across non-Amazon sales channels, such as a company page.
Amazon's e-commerce fulfillment focus allows the organization to provide efficient, cost-effective services to individual sellers, allowing them to reach a global customer base.
*Unlike other 3PLs ranked here, Amazon’s market cap owes a lot to the company's cloud business.
2. United Parcel Service (UPS)
Market capitalization: $112.42 Billion (source)
Employees on LinkedIn: 155,504
United Parcel Service (UPS), founded in 1907, is a global leader in package delivery and supply chain management. Headquartered in Atlanta, Georgia, UPS operates in over 200 countries and territories.
What sets UPS apart is its integrated ground and air transport network coupled with cutting-edge technology. Through its Supply Chain Solutions division, UPS offers comprehensive 3PL services, including warehouse space, distribution, transportation management, and freight forwarding.
UPS's 3PL solutions extend to customs brokerage, contract logistics, supply chain design and optimization, and returns management.
The company's ability to provide end-to-end solutions makes it one of the leading logistics providers in North America (and the world).
3. FedEx (FDX)
Market capitalization: $63.72 Billion (source)
Employees on LinkedIn: 195,491
FedEx Corporation, founded in 1971, revolutionized the delivery industry with the ability to quickly fulfill orders with its overnight shipping services. Initially focused on air express delivery, FedEx expanded rapidly through acquisitions and organic growth, becoming the global enterprise we know today.
It acquired Flying Tiger in 1989, enhancing international capabilities. The company further diversified its fulfillment services with the purchase of RPS (now FedEx Ground) in 1998 and Caliber System in 2000 (now FedEx Freight).
The organization is characterized by the value added by its scope of services that includes warehousing, distribution, transportation management, and customs brokerage.
FedEx's growth strategy has centered on leveraging its extensive transport network to provide integrated and diversified third-party seller services. FedEx's evolution from an air courier to a comprehensive logistics provider reflects its adaptability to the changing market demands.
4. Expeditors (EXPD)
Market capitalization: €15.50 Billion (source)
Employees on LinkedIn: 17,012
Expeditors International, founded in 1979, is a global freight forwarding firm. Unlike asset-heavy competitors, Expeditors operates as a non-asset-based organization, focusing on information management, transport intelligence, and customer service.
The company's 3PL offering encompasses order and delivery management, warehousing and distribution, transporting by air, ocean, and ground, as well as services focused on customs and compliance requirements.
Expeditors leverage its proprietary technology platform to fulfill orders, provide comprehensive services for supply chains, optimize routes, and manage global forwarding.
Known for its strong company culture and employee development, Expeditors has grown organically without major acquisitions.
The firm's success stems from its ability to navigate various logistics challenges including global trade regulations and its commitment to tailoring its services to each client's unique needs, emphasizing efficiency and effectiveness in reducing logistics costs.
5. J. B. Hunt
Market capitalization: €15.30 Billion (source)
Employees on LinkedIn: 21,107
J.B. Hunt Transport Services, founded in 1961 by Johnnie Bryan Hunt, has evolved from a rice hull hauling business into one of the largest shipping companies in North America. J.B. Hunt has expanded its services beyond traditional trucking to become a comprehensive 3PL provider.
The company's Integrated Capacity Solutions department is responsible for third-party logistics, including transportation management, freight brokerage, and integrated supply chain solutions.
J.B. Hunt's strength lies in its diverse service offerings and ability to leverage multiple shipping modes, including intermodal, dedicated contract services, and final mile delivery.
The company reported growth driven by strategic acquisitions and investments in technology, particularly in the Shipper 360° platform, which enhances cargo observability and shipping efficiency for its partners.
6. C. H. Robinson (CHRW)
Market capitalization: $12.51 Billion(source)
Employees on LinkedIn: 18,928
C.H. Robinson, founded in 1905, has shown growth from a small produce brokerage in North Dakota to a global 3PL provider. C.H. Robinson's services include transportation management, freight forwarding, customs brokerage, and warehousing.
As a non-asset-based provider, the organization leverages its vast network of carriers and its proprietary technology platform, Navisphere, to optimize supply chains. As a result, C.H. Robinson provides flexible, scalable solutions for businesses of all sizes.
The company's growth strategy has focused on expanding its global presence through acquisitions and investments in technology, enabling it to offer comprehensive supply chain solutions while maintaining its core competency in transporting goods.
7. XPO Logistics (XPO)
Market capitalization: $12.36 Billion (source)
Employees on LinkedIn: 36,300
XPO Logistics has transformed from a small freight broker into a leading global provider of comprehensive supply chain solutions. Under the leadership of Bradley Jacobs since 2011, XPO has grown rapidly through strategic acquisitions, including the notable purchase of Conway in 2015.
The company's 3PL services include last-mile delivery, warehousing, and order distribution. XPO's strength lies in its technology-driven approach, utilizing advanced analytics and proprietary software to optimize supply chains.
8. GXO Logistics (GXO)
Market capitalization: $5.88 Billion (source)
Employees on LinkedIn: 23,803
GXO Logistics spun off from XPO (above) in 2021. The company is a pure-play contract logistics provider and one of the world's largest 3PL companies. As a relatively new entity, GXO builds on logistics expertise inherited from its parent company.
The firm specializes in complex warehouse management, reverse logistics, and technologically advanced supply chain solutions. GXO's 3PL services focus on e-commerce fulfillment, omnichannel retail support, and advanced automation in warehousing.
The company leverages AI, robotics, and machine learning to optimize operations and enhance efficiency.
GXO's competitive edge in the 3PL industry lies in its ability to provide tailored, high-value services that adapt to rapidly changing market demands. Their technology-first approach allows GXO to redefine the logistics landscape through innovation and operational excellence.
9. Ryder System (R)
Market capitalization: €5.67 Billion (source)
Employees on LinkedIn: 16,097
Ryder System, Inc., founded in 1933, has evolved from a small Miami-based trucking company into a Fortune 500 commercial fleet management and supply chain solutions provider.
Today, Ryder's 3PL services are exhaustive, encompassing warehousing, distribution, transportation management, and dedicated contract carriage.
The company's unique position stems from its dual capacity as an asset-based and non-asset-based provider, allowing for flexible services tailored to individual client needs. Ryder has grown through strategic acquisitions and expanding its service offerings, particularly with an e-commerce fulfillment focus and within the last-mile delivery space.
RyderShare, a visibility and collaboration platform, shows the company's commitment to technology and optimization. The firm's focus on sustainability, including alternative fuel vehicles, further distinguishes it in the market.
Armstrong & Associates ranking of 3PL providers
Armstrong & Associates, a leader in market research, published a ranking of the top 50 US third-party logistics providers by gross revenue/turnover every year.
You can check their top 3PL firms for 2023 here.
Tips for choosing the right 3PL provider
Selecting the right 3PL partner is crucial for maximizing the benefits of third-party logistics services.
Ensure you will make the right decision by examining the eight areas described below.
1. Understand your needs
Clearly define your transportation and fulfillment requirements, including shipping, warehouse space and location, distribution management, and any value-added services you need.
You want to align the capabilities of the 3PL provider with your business growth objectives.
2. Evaluate expertise
Look for 3PL providers with experience in your industry and a proven track record. Industry-specific knowledge and warehouses can be crucial for handling unique challenges your organization encounters.
3. Assess technology
Ensure your 3PL partner uses modern technology that provides real-time tracking, data visibility, and efficient digital management tools.
The right technology can vastly improve supply chain visibility and efficiency, making an impact on your total revenue.
4. Check network capabilities
Verify the potential partner's network. Investigate if chosen shippers can meet your coverage needs and ensure timely deliveries. A strong network can prevent potential bottlenecks and delays - especially in high season.
5. Consider scalability
Choose a 3PL that can scale its services to match your growing business needs and handle fluctuations in demand to keep your costs in check. This flexibility will support business expansion without compromising efficiency. Consider the size and distribution of your potential partner's global workforce and its location strategy.
Another thing to consider is the integration capability of systems. Your third-party provider should handle this process to ensure they can quickly start delivering to your customers.
6. Review customer service
Evaluate the provider's commitment to customer experience and their ability to offer personalized services. Reliable customer service ensures quick resolution of issues and better coordination.
7. Analyze costs
Consider the total cost of services, including hidden fees, and compare them with the potential savings in operational costs and value-added benefits.
A transparent cost structure helps in budgeting and financial planning even in cases of economic downturn that often results in increased costs of transporting goods.
8. Seek recommendations
Experienced peers can offer valuable insights into a 3PL's performance and reliability. Get feedback from other businesses in your industry to identify reliable 3PL providers with solid reputations.
Aim to work with shippers that offer fair and competitive rates, have access to infrastructure, such as warehouses in multiple locations, and have no issues attracting talent needed to develop digital tools such as real-time data analytics platforms.
Such a partner should be well-equipped to face important challenges the 3PL sector faces today.
The 3PL providers of tomorrow and the future of the logistics industry
The 3PL industry is a very challenging economic environment but also a cornerstone of the global economy. Third-party logistics providers have a tremendous impact on how our world looks today, and they will shape how it looks in the future.
Choosing the right 3PL partner is a strategic decision that will impact your business's efficiency and profitability, so it warrants serious consideration.
