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The continued development of e-commerce orders, constructive financial circumstances and robust shopper spending patterns set the stage for achievement for third-party logistics (3PL) suppliers and refrigerated warehousing and logistics suppliers in 2021. Barring any main disruptions to the present circulation, this momentum is predicted to proceed proper into 2022.
Armstrong & Associates, a number one 3PL consultancy and analysis agency, stories that complete business warehousing area for the highest 20 North American warehouses totaled about 767 million sq. ft this yr and was unfold throughout 3,214 totally different services within the United States.
Evan Armstrong, president of Armstrong & Associates, says the general business warehousing market remained “pretty strong” all through 2021, with the entire international business warehousing income anticipated to succeed in about $1.1 trillion this yr (up from $962 billion in 2020), together with each contract and public providers. Armstrong expects the value-added warehousing market (third-party logistics) within the United States to develop by 8.9% in 2021 and attain $50.9 billion (up from $46.9 billion in 2020).
Armstrong compiles an annual listing of the highest North American warehousing firms. Each firm has both supplied sq. footage info or sufficient public info for Armstrong & Associates to make an affordable estimate of measurement. “I think we’re then going to see pretty good growth for the market throughout 2022 and into 2023,” he provides. “That’s our current projection.”
The prime gamers
With practically 140 million sq. ft of area throughout 493 warehouses, DHL Supply Chain North America maintained its reign because the top-ranking 3PL in North America in 2021. Based on Armstrong & Associates’ estimates, Amazon technically ranked second with 185 million and 290 complete warehouses, however isn’t given an official rating quantity on the chart.
Rounding out the highest 5 this yr have been GXO Logistics (101 million/336 places), Ryder Supply Chain Solutions (64 million/330 warehouses), NFI (53 million/132 places) and GEODIS North America (52.2 million/171 warehouses). All of those firms retained their respective positions on the listing, in comparison with 2020’s rankings.
Other main gamers on this yr’s listing embody Americold (44.9 million sq. ft throughout 194 places), Lineage Logistics (40 million/213), FedEx Logistics (30.7 million/110), Kenco Logistics Services (30 million/90) and Penske Logistics (26.5 million/94). The two new entrants claiming spots on the Top 20 for 2021 have been Maersk Logistics North America (14.7 million sq. ft and 46 places) and DSV Panalpina North America (14.1 million/46).
Top 20 North American Warehousing 3PLs
(Rank Based on 2020 Warehousing Square Footage inside North America)*
|Third-party logistics supplier (3PL)||Headquarters||
(Millions of Square Feet)
DHL Supply Chain
|2||2||GXO Logistics||Greenwich, CT||101.0||336|
|3||3||Ryder Supply Chain Solutions||Miami, FL||64.0||330|
|5||5||GEODIS North America||Brentwood, TN||52.2||171|
|7||7||Lineage Logistics||Novi, MI||40.0||213|
|8||8||FedEx Logistics||Memphis, TN||30.7||110|
|9||9||Kenco Logistic Services||Chattanooga, TN||30.0||90|
|10||11||Penske Logistics||Reading, PA||26.5||94|
|11||13||Saddle Creek Logistics Services||Lakeland, FL||26.2||76|
|Des Plaines, IL||23.9||63|
Kuehne + Nagel
|Jersey City, NJ||18.7||87|
|16||16||UPS Supply Chain Solutions||Alpharetta, GA||17.3||144|
|Florham Park, NJ||14.7||46|
|19||17||Warehouse Services||Piedmont, SC||14.0||30|
Top 20 North American Refrigerated Warehousing Companies
(Canada, Mexico and U.S.)
A rising market
Reflecting on this yr’s Top 20 rating, Armstrong says GXO Logistics’ spin-off from XPO Logistics, which came about in August 2021, was an “interesting approach, strategically speaking.”
According to the corporate, GXO launched with roughly 94,000 group members worldwide and greater than 208 million sq. ft of warehouse area in 869 places throughout 27 international locations.
Its buyer base contains manufacturers like Apple, Nike, Nestlé and Whirlpool, together with varied e-commerce, attire, know-how, meals and beverage, and shopper electronics firms.
“They basically put all of their global warehousing operations in one silo,” says Armstrong. “I know they’re still planning on cross-selling between XPO and GXO, so we’ll see how well that works [out].” He sees NFI sustaining a robust place available in the market as an built-in resolution supplier, noting the corporate has expanded each its built-in warehousing and devoted contract carriage options choices. Geodis additionally continues to face out on its sturdy retail, high-tech and shopper operations.
Going down the listing, Armstrong says Kenco’s mixture of healthcare and shopper retail package deal items (CPG) clients makes it a “pretty sophisticated provider,” whereas CJ Logistics now affords a broader warehousing footprint and home transportation administration functionality than it did beforehand, when working primarily with Korean multi-national organizations.
By buying Visible Supply Chain Management in August 2021, Maersk additional entrenched itself within the e-commerce and small parcel sectors. When the acquisition was introduced, Visible SCM was working 9 success facilities within the United States, in response to the corporate.
In 2020, the corporate had beforehand acquired omni-channel success supplier Performance Team, which handles container trans-loading and de-consolidation.
Armstrong sees these acquisitions as an indication that Maersk needs to make strikes to reinforce its 3PL warehousing footprint and presence and e-commerce providing. The firm has historically been sturdy within the retail sector and appears to be spreading its wings into different alternative areas. Due to this exercise, Armstrong says he “expects Maersk to be higher on the Top 20 list in 2022.”
This yr and past
Looking forward, Armstrong expects to see suppliers like Lineage Logistics persevering with its “growth by acquisition” technique in 2022 whereas organizations like Saddle Creek Logistics Services (ranked No. 11 with 26.2 million sq. ft of area in 76 places) sustaining its present natural development technique.
He additionally mentions Amazon’s continued affect on the third-party logistics business, and says he expects the e-tailer to increase its 3PL footprint with its Fulfillment by Amazon providing because it “keeps expanding its offering to mid-market customers.”
Calling e-commerce the “fastest-growing 3PL segment” proper now, Armstrong says that nook of the market has been posting a median 28% compound annual development fee (CAGR) since 2017. He expects that momentum to proceed. “We expect e-commerce to really be a catalyst for much growth,” says Armstrong, “this year, next year and beyond.”
Tracking development in chilly chain logistics
Every yr, the International Association of Refrigerated Warehouses (IARW) publishes its North American Top 25 List of the biggest refrigerated warehousing and logistics suppliers in Canada, Mexico and the United States. The listing is set by complete capability—in thousands and thousands of cubic ft—of temperature-controlled area operated by IARW warehouse members.
According to Matthew R. Ott, GCCA’s president and CEO, the chilly chain business continues to develop domestically and globally. Based on GCCA member capability, the group has seen a rise of practically 20% from 2020 to 2021. Throughout the pandemic, the affiliation has witnessed the necessity for 3PL refrigerated warehouses “increase significantly,” says Ott.
“Our 2021 report shows that this year the top three companies have remained the same, Lineage Logistics [with 1643 million cubic feet of space, up from 1391.9 in 2020], Americold Logistics [1192.3 million versus 1032.1 last year] and United States Cold Storage [381.8 million compared to 373.9 in 2020], though they have all increased in capacity,” Ott explains.
Other firms claiming prime spots on this yr’s listing have been Interstate Warehousing (with 137.2 million cubic ft of area, up from 115.7 final yr), VersaCold Logistics Services (123 million, the identical as 2020), and Frialsa (108.6 million in comparison with 102.2 in 2020). The new entrants on this yr’s listing included RLS Logistics (with 26.1 million cubic ft) and Interstate Cold Storage Inc. (21.4 million).
More resiliency forward
Looking forward to 2022, Ott expects elevated automation in refrigerated warehouses to proceed, and notably as capability continues to extend and technological advances play a extra outstanding position in new services.
Additionally, he sees expertise recruitment enjoying a crucial position in protecting the chilly chain steady, protected and environment friendly, particularly in mild of the pandemic-related labor shortages. He says GCCA is concerned with coaching and management applications (for instance with its WFLO Institute) and continues to develop applications to assist members with recruitment, retention, coaching, job process evaluation and business promotion.
Reflecting on the final 18 to 20 months, Ott says that the chilly chain has demonstrated “great strength and resiliency” in responding to the assorted disruptions that surfaced throughout that point interval. And whereas there are certain to be continued provide chain challenges in 2022, he provides that the elevated public consciousness of the availability chain provides GCCA a number of causes to be optimistic concerning the future.
“There’s more recognition on the importance of the supply chain and, as a result, policy makers are paying closer attention to supply chain issues than ever before,” Ott provides. “GCCA is actively working with policy makers to strengthen the food supply chain so it can continue to withstand these disruptions and challenges as they emerge in the future.”