THIRD QUARTER 2017 | ISSUE 36

Table of Contents
Table of Contents .................................................................................................................................................. 2

I. Introduction .................................................................................................................................................... 3

II. Executive Summary ....................................................................................................................................... 3
Q317 vs. Q217 Comparison .................................................................................................................. 4

Q317 vs. Q316 Comparison .................................................................................................................. 4

Current Eight Rolling Quarter Comparison ....................................................................................... 4
III. Total Business Activities ............................................................................................................................... 5

Quarter/Quarter Comparison: Q317 vs. Q217 ................................................................................. 5

IV. Truckload Comparison ...............................................................................................................................10

TL Activity Q317 vs. Q217 ....................................................................................................................10

V. LTL Comparison ...........................................................................................................................................13

LTL Activity Q317 vs. Q217 ..................................................................................................................13
VI. Intermodal Comparison .............................................................................................................................14

IM Activity: Q317 vs. Q217 ...................................................................................................................14

VII. Total Business Activity .................................................................................................................................14
Year/Year Comparison: Q317 vs. Q316 ............................................................................................14

VIII. Truckload Comparison ...............................................................................................................................16

TL Activity Q317 vs. Q316 ....................................................................................................................16

IX. LTL Comparison ...........................................................................................................................................19

X. Intermodal Comparison .............................................................................................................................20

IM Activity Q317 vs. Q316 ....................................................................................................................20

XI. Total Shipment Trends ...............................................................................................................................20

XII. Eight Rolling Quarter Trends ....................................................................................................................21

Truckload .................................................................................................................................................21

LTL .............................................................................................................................................................22

Intermodal ...............................................................................................................................................23

XIII. Definitions......................................................................................................................................................28

2 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
I. Introduction

The Transportation Intermediaries Association’s (TIA) TIA 3PL Marketing Report is a quarterly report
consisting of empirical data that represents the standard by which all 3PL activity is measured.

The TIA 3PL Marketing Report continues to be developed and refined by TIA. Our Report has 36
participating TIA members contributing monthly data who we thank for making the TIA 3PL
Marketing Report possible. The data used to compare quarters includes only participants who
submitted consistent data for both time periods.

II. Executive Summary

The TIA 3PL Marketing Report includes external market data to provide a broader scope and
perspective of 3PL performance. We have incorporated data from Truckstop.com in New
Plymouth, ID and Freight Transportation Resources and Associates (FTR) in Bloomington, IN.

In 2016 we introduced the inclusion of FTR and Truckstop information to help provide additional
understanding to performance. This data includes a combination of truck and load availability for
all markets and an overall market demand. This data provides perspective to better understand
3PL performance and other factors that may influence overall trends.

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 3
©Transportation Intermediaries Association. All Rights Reserved.
Q317 vs. Q217 Comparison

 Total shipments decreased 0.8%, and total revenue increased 0.6%

 Gross Profit Margin percentage increased 40 basis points to 15.5%

 Volume grew for all primary modes across the board

 Profit Margin % increased 40 basis points for TL, 30 for LTL, and 10 for intermodal

 Invoice amount per shipment increased for TL by 2.2%, LTL by 14.8%, and intermodal by
7.9%

 Fuel increased by 2.5%, or $.07 a gallon

Q317 vs. 316 Comparison

 Total shipments increased 10.9%, and total revenue jumped 16.0%

 Gross Profit Margin % declined 40 basis points

 Volumes in all three primary modes increased between 4.4% and 15.8%.

 Both TL and intermodal had declines in Profit Margin % of 70 and 40 basis points,
respectively

 LTL was the only mode with marked Profit Margin improvement at 80 basis points

 Total revenue increased for TL by 18.9%, for LTL by 22.1%, and for intermodal by 7.8%

 Fuel increased 9.9% or $.24/gallon

Current Eight Rolling Quarter Comparison

 Intermodal volume growth has been steady at about 5% for the past two quarters

o Invoice amount per shipment remained steady just under $2,200, and Gross Profit
Margin percent improved since last quarter to 9.0%

 TL volume has grown three consecutive quarters

o Profit Margin % has improved for two consecutive quarters. Invoice Amount per load
is rising again for the third consecutive quarter

 LTL volume has grown three consecutive quarters

o Profit Margin % has remained steady in the 20% to 22% range. Invoice amount per
shipment rose slightly since last quarter

FTR-Truckstop Measurement

o 3PL TL volumes outpaced total TL environment in 68% of quarters of the past six
years, and the last three quarters have accelerated. 3PL intermodal volumes have
generally underperformed versus the intermodal market, but the last 3 quarters 3PLs
have outpaced the market.

o MDI increased sharply in Q3 and was at its highest point since measurement in 2008

4 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
III. Total Business Activities

Quarter/Quarter Comparison: Q317 vs. Q217

The study participants reported activity in six modes or services offered. TL
remains the dominant mode at 68%. Adding Intermodal (IM) and LTL; the three
modes are 97% of all activity.

Q317 Activity by Service

10% 3%

19%
68%

TL Intermodal LTL Misc

The chart below measures the percentage of companies who offer a range of
services in logistics. TL, LTL, and Warehouse remained relatively steady. There
were decreases in Rail, Ocean, and Air. Ocean and Air continue to represent a
relatively rare service offering for participants.

Average Participation Rate in Service Offerings
Q317 vs Q217
100%
80%
60% Q317
40% Q217
20%
0%
TL LTL Rail Ocean Air Whse

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 5
©Transportation Intermediaries Association. All Rights Reserved.
Total shipments in Q317 vs Q217 decreased by 0.8%, and revenue invoice
amount per shipment increased by 2.5%, and .07% respectively. Profit margin
increased by 40 basis points. DOE fuel cost per gallon increased by 4.1% or
$.10/gallon.

Total Activity Summary
Metric Q317 Q217 % Change
Total Shipments 1,428,332 1,439,797 -0.8%
Total Revenue (000) $2,572,867 $2,557,045 0.6%
Invoice Amount per Shipment $1,801 $1,776 1.4%
Profit Margin % 15.5% 15.1% 40 Basis Points

Overall performance by participant size is below:

 Participants in the larger than $100M group had increases across the
board.
 The middle participants group had a decrease in shipments, but increases
in revenue and total margin.
 The less than $16MM group had increases in shipments, revenue and total
margin.

Total Activity
Q317 vs. Q217 Percent Change
Annual Revenue Revenue Shipments Margin $$
< $16MM 17.7% 18.2% 19.3%
$16MM - $100MM 2.4% -1.1% 2.1%
> $100MM 17.2% 9.3% 14.7%
Total 0.6% -0.8% 12.2%

6 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 7
©Transportation Intermediaries Association. All Rights Reserved.
The charts below reflect that Average Invoice Dollars per Shipment increased
slightly for all categories. Gross Profit Margin Percentage increased slightly for all.

Average Invoice Dollars per Shipment
(All Size Categories)
Q317 vs. Q217
Q217
$2,000
$1,500
$1,000
Q317
$500
< $16M $16M - > $100M All
$100M

Average % Profit Margin (All Size Categories)
Q317 vs. Q217
Q217

17% Q317
13%
9%
5%
< $16M $16M - > $100M All
$100M

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©Transportation Intermediaries Association. All Rights Reserved.
Fuel in Q317 v Q217 increased by 2.5% or $.07/gallon.

Q3 17 vs. Q2 17
National Average Fuel Cost per Gallon
Source eia.doe.gov

$2.90

$2.80

$2.70

$2.60

$2.50

$2.40
Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10

Week 11

Week 12

Week 13
Q2 17 Q3 17

Mode Comparison: Total dollars billed in Q317 from the participants was $2.6
billion, with a base of 1.4 million shipments. All modes saw increases in all
categories.

Mode Summary Q317 vs. Q217
Metric TL LTL Intermodal
Total Shipments 6.5% 7.4% 3.9%
Invoice Amount/Load 2.2% 6.9% 3.8%
Total Invoice Dollars 10.4% 14.8% 7.9%
Margin % 40 Basis Points 30 Basis Points 10 Basis Points

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©Transportation Intermediaries Association. All Rights Reserved.
IV. Truckload Comparison

TL Activity Q317 vs. Q217

TL reported increases in total shipments and invoice amount per load. Profit
margin per load increased 4.6%, and profit margin increased by 40 basis points.

Truckload
Metric Q317 Q217 % Change
Total Shipments 974,450 914,898 6.5%
Invoice Amount/Load $1,507 $1,475 2.2%
Profit Margin/Load $221 $211 4.6%
Profit Margin % 14.7% 14.3% 40 Basis Points

Invoice amount per load increased for the less than $16 million category. Total
loads decreased for the category between $16 million and $100 million.

Truckload
Metric
Q317 Q217 % Change
Less than $ 16 million
Total Loads 23,487 21,175 10.9%
Invoice Amount/Load $1,322 $1,225 8.0%
Profit Margin/Load $218 $196 10.9%
Profit Margin % 16.5% 16.0% 50 Basis Points
$16 to $100 million Q317 Q217 % Change
Total Loads 112,510 119,967 -6.2%
Invoice Amount/Load $1,601 $1,535 4.3%
Profit Margin/Load $240 $229 4.8%
Profit Margin % 15.0% 14.9% 10 Basis Points
Over $100 million Q317 Q217 % Change
Total Loads 838,453 773,756 8.4%
Invoice Amount/Load $1,486 $1,468 1.2%
Profit Margin/Load $214 $205 4.7%
Profit Margin % 14.4% 13.9% 50 Basis Points

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©Transportation Intermediaries Association. All Rights Reserved.
The below graph reflects the percentage change of total invoice billing to the total
margin in the period.

Percentage of Change
Total Invoice Billing to Total Margin
Q317 vs. Q217
25%
20%
% Change

15% Billing
10%
5% Margin
0%
-5%
< $16M $16M - > $100M All
$100M

The following graph breaks down in detail the participant groups and percent
changes for shipments.

TL % Change Total Shipments All Groups
Q317 vs. Q217
15%
10%
5%
0%
-5%
-10%
< $16M $16M - > $100M All
$100M

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©Transportation Intermediaries Association. All Rights Reserved.
The following graphs break out the detail of the participant groups and percent
change for margin dollars, average margin per shipment and gross profit margin
percentage.

TL Total Margin Dollar % Change All Groups
Q317 vs. Q217
30%
20%
10%
0%
-10%
< $16M $16M - > $100M All
$100M

Truckload Average Margin per Shipment
Q317 vs. Q217

$250 Q217
$225
$200
$175 Q317
$150
< $16M $16M - > $100M All
$100M

Truckload Profit Margin %
Q317 vs. Q217

18% Q217
16%
14%
12% Q317
10%
< $16M $16M - > $100M All
$100M

12 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
V. LTL Comparison

LTL Activity Q317 vs. Q217

LTL increased in invoice amount per load and profit margin of 6.9% and 8.5%,
respectively. Total shipments increased by 7.4%, and profit margin increased by
30 basis points.

LTL
Metric Q317 Q217 % Change
Total Loads 140,177 130,495 7.4%
Invoice Amount/Load $394 $368 6.9%
Profit Margin/Load $82 $75 8.5%
Profit Margin % 20.7% 20.4% 30 Basis Points

Looking at the performance by participant size, the category between $16 million
and $100 million was the only one to experience a decrease in total loads and
profit margin (3.7% and 250 basis points respectively). Companies larger than
$100M – increased in profit margin per load of 7.1%.

LTL
Metric
Q317 Q217 % Change
Less than $ 16 million
Total Loads 8,137 7558 24.3%
Invoice Amount/Load $711 755 -2.2%
Profit Margin/Load $162 $175 0.7%
Profit Margin % 22.8% 23.2% 60 Basis Points
$16 to $100 million Q317 Q217 % Change
Total Loads 5,723 6,640 -13.8%
Invoice Amount/Load $594 $546 8.9%
Profit Margin/Load $114 $119 -3.7%
Profit Margin % 19.3% 21.8% -250 Basis Points
Over $100 million Q317 Q217 % Change
Total Loads 82,807 74,213 11.6%
Invoice Amount/Load $434 $407 6.7%
Profit Margin/Load $97 $90 7.1%
Profit Margin % 22.3% 22.2% 10 Basis Points

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 13
©Transportation Intermediaries Association. All Rights Reserved.
VI. Intermodal Comparison

IM Activity: Q317 vs. Q217

Intermodal experienced an increase of 3.8% in invoice amount per load, and an
increase in profit margin of 10 basis points.

Intermodal
Metric Q317 Q217 % Change
Total Shipments 277,766 267,261 3.9%
Invoice Amount/Load $2,885 $2,779 3.8%
Profit Margin % 9.0% 8.9% 10 Basis Points

VII. Total Business Activity

Year/Year Comparison: Q317 vs. Q316

The table below compares total performance for all groups. Total shipments
increased 10.9%, along with revenue improving 16%, and invoice amount per load
increasing 4.6%. Profit margin declined 40 basis points.

Total Activity Summary
Metric Q317 Q316 % Change
Total Shipments 1,428,332 1,288,188 10.9%
Total Revenue (000) $2,572,867 $2,217,524 16.0%
Invoice Amount/Shipment $1,801 $1,721 4.6%
Profit Margin % 15.5% 15.9% -40 Basis Points

Comparing total performance by group size, companies between $16-$100
million experienced decreases in profit margin. All other companies reported
increases in all reporting categories, except the middle category’s shipments.

Total Activity
Q317 vs. Q316 Percent Change
Annual Revenue Revenue Shipments Margin $$
< $16MM 7.0% 7.6% 4.3%
$16MM - $100MM 6.8% -7.1% -17.3%
> $100MM 14.5% 11.5% 23.9%
Total 16.0% 10.9% 14.0%

14 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
The table below measures the percentage of change in Q317 vs. Q316 for the
three primary modes that constitute 97% of all activity.

 Shipments increased 15.8% for LTL, 4.4% for intermodal and increased
11.7% for TL.
 Invoice amount per load decreased 5.4% for LTL.
 Revenue increased in all modes.
 Fuel increased 9.9% or $.24/gallon

Mode Summary
Metric TL LTL Intermodal
Total Shipments 11.7% 15.8% 4.4%
Invoice Amount/Load 5.5% 5.4% 3.2%
Total Revenue 18.9% 22.1% 7.8%
Margin % -70 Basis Points 80 Basis Points -40 Basis Points

Fuel increased 9.9% or $.24/gallon.

Q317 vs Q316
National Average Fuel Cost per Gallon
Source eia.doe.gov

$2.90

$2.80

$2.70

$2.60

$2.50

$2.40

$2.30
Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10

Week 11

Week 12

Week 13

Q3 16 Q3 17

Increase font and bold color key

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 15
©Transportation Intermediaries Association. All Rights Reserved.
VIII. Truckload Comparison

TL Activity Q317 vs. Q316

Truckload experienced a slight increase in profit margin per load and a
decrease in profit margin, and increases in invoice amount per load and total
shipments.

Truckload
Metric Q317 Q316 % Change
Total Shipments 974,450 872,237 11.7%
Invoice Amount/Load $1,507 $1,428 5.5%
Profit Margin/Load $221 $220 0.5%
Profit Margin % 14.7% 15.4% -70 Basis Points

In terms of TL performance by participant group, companies larger than $16M
and smaller than $100M decreased total shipments. Those smaller than $16M
increased in all areas apart from profit margin per load. Companies over
$100M increased their total shipments, invoice amount per load, and profit
margin per load, and decreased in profit margin.

Truckload
Metric
Q317 Q316 % Change
Less than $ 16 million
Total Loads 23,487 22,215 5.7%
Invoice Amount/Load $1,322 $1,319 0.2%
Profit Margin/Load $218 $225 -3.3%
Profit Margin % 16.5% 17.1% -60 Basis Points
$16 to $100 million Q317 Q316 % Change
Total Loads 112,510 121,501 -7.4%
Invoice Amount/Load $1,601 $1,389 15.3%
Profit Margin/Load $240 $236 1.7%
Profit Margin % 15.0% 17.0% -200 Basis Points
Over $100 million Q317 Q316 % Change
Total Loads 838,453 728,521 15.1%
Invoice Amount/Load $1,486 $1,457 2.0%
Profit Margin/Load $214 $212 1.1%
Profit Margin % 14.4% 14.5% -10 Basis Points

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The following graph reflects the percentage of change in the period to total
invoice billing and total margin; companies larger than $16M and smaller
than $100M experienced improvement in billing of less than 10%, and
declined in margin by almost 5%, and companies smaller than $16M
experienced increases in both billing and margin.

Percentage of Change
Total Invoice Billing to Total Margin
Q317 vs. Q316
30%
20%
% Change

Billing
10%
Margin
0%
-10%
< $16M $16M - $100M > $100M All

The following graphs break out the detail of the participant groups and
percent change for shipments, margin dollars, average margin per shipment,
and gross profit margin percent.

% Change Total Shipments All Groups
Q317 vs. Q316
20%

0%

-20%
< $16M $16M - $100M > $100M All

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 17
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TL Total Gross Margin Dollar % Change
All Groups Q317 vs. Q316
30%

20%

10%

0%

-10%
< $16M $16M - $100M > $100M All

Truckload Average Gross Margin per Shipment
Q317 vs. Q316

$250 Q316

$200
Q317
$150
< $16M $16M - $100M > $100M All

Truckload Profit Margin %
Q317 vs. Q316

18% Q316

14%
Q317
10%
< $16M $16M - $100M > $100M All

18 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
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IX. LTL Comparison

LTL invoice amount per load increased 5.4%, while shipments increased by 15.8%.
Profit margin percent improved 80 basis points.

LTL
Metric Q317 Q316 % Change
Total Shipments 140,177 121,068 15.8%
Invoice Amount/Load $394 $373 5.4%
Profit Margin/Load $82 $74 9.6%
Profit Margin % 20.7% 19.9% 80 Basis Points

Looking at the performance by participant size, there was quite a bit of variance:
companies smaller than $16M, and companies larger than $16M and smaller
than $100M had decreases in profit margin per load of 6.9 and 9.6% respectively,
where those larger than $100M experienced an increase of 10.5%. Companies
smaller than $16M and larger than $100M both showed sharp decline in profit
margin.

LTL
Metric
Q317 Q316 % Change
Less than $ 16 million
Total Shipments 8,137 5,588 45.6%
Invoice Amount/Load $711 $702 1.3%
Profit Margin/Load $162 $174 -6.9%
Profit Margin % 22.8% 24.8% -200 Basis Points
$16 to $100 million Q317 Q316 % Change
Total Shipments 5,723 6,326 -9.5%
Invoice Amount/Load $594 $554 7.4%
Profit Margin/Load $114 $127 -9.6%
Profit Margin % 19.3% 22.9% -360 Basis Points
Over $100 million Q317 Q316 % Change
Total Shipments 82,807 64,699 28.0%
Invoice Amount/Load $434 $421 3.1%
Profit Margin/Load $97 $88 10.5%
Profit Margin % 22.3% 20.8% 150 Basis Points

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 19
©Transportation Intermediaries Association. All Rights Reserved.
X. Intermodal Comparison

IM Activity Q317 vs. Q316

Intermodal shipments increased 4.4%. Invoice amount per load decreased 10.3%.
Profit margin percent declined 40 basis points.

Intermodal
Metric Q317 Q316 % Change
Total Shipments 277,766 265,944 4.4%
Invoice Amount/Load $2,169 $2,417 -10.3%
Profit Margin % 9.0% 9.4% -40 Basis Points

XI. Total Shipment Trends

The chart below compares the percentage change in volume by mode. All areas
apart from intermodal experienced an upward trend.

Quarterly Shipment Percent Change
20.0%

15.0%

10.0%

5.0%

0.0%

-5.0%

-10.0%
Q416 v Q415 Q117 v Q116 Q217 v Q216 Q317 v Q316

Rail TL LTL

20 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
XII. Eight Rolling Quarter Trends

This report includes a rolling summary of the previous eight quarters of
performance. The data on the following pages will remain for future reports
and will focus on TL, Intermodal, and LTL.
Truckload

Truckload Rolling 8 Quarter Metrics
$2,000 18.0%

$1,800

16.0%
$1,600

$1,400
14.0%

$1,200

$1,000 12.0%
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317
Invoice Amount per Shipment Profit Margin %

Truckload Rolling 8 Quarters
Measurement Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317
Invoice
$1,539 $1,370 $1,420 $1,428 $1,531 $1,452 $1,474 $1,507
Amount/Shipment
Margin/SHipment $250 $232 $236 $220 $217 $219 $212 $221
Profit Margin % 16.3% 16.9% 16.6% 15.4% 14.2% 15.1% 14.4% 14.7%

Truckload Rolling 8 Quarter Shipments
950,000

900,000

850,000

800,000

750,000

700,000
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317

Shipments

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 21
©Transportation Intermediaries Association. All Rights Reserved.
LTL

LTL Rolling 8 Quarter Metrics
$575 22.5%
$550
$525 22.0%
$500
21.5%
$475
$450
21.0%
$425
$400
20.5%
$375
$350 20.0%
$325
$300 19.5%
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317
Invoice Amount per Shipment Profit Margin %

LTL Rolling 8 Quarter Shipments
90,000

80,000

70,000

60,000

50,000
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317

Shipments

LTL Rolling 8 Quarters
Measurement Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317
Invoice Amount/Load $471 $452 $457 $452 $476 $439 $447 $467
Margin/Load $101 $99 $100 $97 $98 $93 $100 $103
Profit Margin % 21.4% 21.9% 21.9% 21.5% 20.6% 21.2% 22.3% 22.1%

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Intermodal

Intermodal Rolling 8 Quarter Metrics
12.0%
$2,400

$2,200

$2,000

10.0%
$1,800

$1,600

$1,400

$1,200 8.0%
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317

Invoice Amount per Shipment

Intermodal Rolling 8 Quarter Shipments
275,000

250,000

225,000

200,000

175,000

150,000
Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317

Shipments

Intermodal Rolling 8 Quarters
Measurement Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317
Invoice Amount/Load $2,163 $2,133 $2,099 $2,182 $2,178 $2,185 $2,199 $2,169
Margin/Load $216 $222 $210 $205 $203 $189 $195 $196
Profit Margin % 10.0% 10.4% 10.0% 9.4% 9.3% 8.7% 8.9% 9.0%

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©Transportation Intermediaries Association. All Rights Reserved.
For the purposes of the TIA 3PL Marketing Report, we are utilizing certain
data points from Truckstop and FTR.
Truckstop’s Trans4cast data measures spot market loads and truck
availability data in the first chart below. The second chart is their Market
Demand Index (MDI), which is a representation of available shipments and
carrier availability.
Truck availability has steadily declined since mid-2015 and load availability
has modestly improved until early 2017, resulting in sharp increases. MDI
increased sharply in 2017 and well exceeded the high point in 2014.

Spot Load & Truck Availability Indices
150

100

50

0
2008.1 2009.1 2010.1 2011.1 2012.1 2013.1 2014.1 2015.1 2016.1 2017.1
T4C Load Availability Index T4C Truck Availability Index

40.0
Market Demand Index

30.0

20.0

10.0

0.0
2008.1 2009.1 2010.1 2011.1 2012.1 2013.1 2014.1 2015.1 2016.1 2017.1
T4C Market Demand Index (MDI)

24 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
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FTR produces a total Truckload and Intermodal Loading Index that
represents the activity of shippers, carriers, and 3PLs.
The following charts compare certain TIA 3PL Marketing Report data to Truckstop
and FTR indices. The purpose of the comparison is to provide further insight into
TIA Market Performance to additional reference points within our industry.
The two charts below compare Truckload shipment activity from 2011 through
2017. The data is indexed from 2011 as the start; TIA data is the blue bar, and FTR
is the yellow line. The second chart compares the percentage change of shipment
activity. This indicates 3PLs have outgrown the market in 68% of the quarters.

Indexed Truckload Shipments
150

130

110

90

70

50
Q1Q2 Q3Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2Q3 Q4Q1 Q2Q3
11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17
TIA Shipment FTR TL Index

Quarterly % Change in Truckload Shipments
20%
15%
10%
5%
0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
-5%
11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17
-10%
-15%

TIA FTR TL Index

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 25
©Transportation Intermediaries Association. All Rights Reserved.
The next two charts compare the same data as above for intermodal. 3PLs
intermodal volume performance has outpaced the intermodal environment 44%
of the quarters, but has outperformed the overall environment in the past 3
quarters.

Indexed Intermodal Shipments
150

125

100

75

50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17

Shipments FTR IM Index

Quarterly % Change TIA in Intermodal Shipments
17%

12%

7%

2%

-3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17
-8%

TIA FTR TL Index

26 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
The two charts below compare TIA TL shipment activity the past seven years to truck availability
and spot market loads.

Truckload Shipments to Truck Availibility
1,100 150

125

900 100

75

700 50

25

500 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17

Shipments Truck Avail

Truckload Shipments to Load Availibility
1,100 150

125

900 100

75

700 50

25

500 0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17
Shipments Spot Load Avail

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©Transportation Intermediaries Association. All Rights Reserved.
XIII. Definitions

Air/Expedited Transportation: Any shipment that is marked to be moved via
air service.
Basis Points: Is a unit equal to 1/100 of a percentage point or one part per ten
thousand.
Gross Invoice Dollars per Shipment: Is the total gross invoice dollars, divided
by the total number of shipments.
Gross Margin/Margin: Gross invoice dollars defined above less direct cost for
purchased transportation with carriers to include any cost paid to a carrier (e.g.,
line haul transport, detention, delay, fuel surcharge, stop-offs, team drivers,
loading unloading services, lumper, transloading) and without regard to type of
cargo (e.g., hazardous materials, pharmaceuticals, electronics, general
commodities, geographic region of transport, weight, miles) or equipment (dry
van, flatbed, tank, refrigerated).
Gross Margin per Shipment: Is the total gross margin divided by total number
of shipments.
LTL-Highway Transportation: Any shipment that is picked up that is combined
on a truck with other shipments that does not constitute at least 75% of the
trailer’s capacity.
MDI – Market Demand Index: Measures loads verses trucks
Miscellaneous: Revenue and activities that do not logically fit with any other
catagory.
Number of shipments: The total number of shipments handled during the time
period being evaluated.
Ocean Transportation: Any shipment that travels on an ocean going vessel.
Rail/Intermodal Transportation: A combination of truck and rail service.
Total Gross Dollars (Revenue) Billed: Gross invoice billings during the time
period being evaluated, without regard to type of cargo (e.g., hazardous materials,
pharmaceuticals, electronics, general commodities, geographic region of
transport, weight, miles) or equipment (dry van, flatbed, tank, refrigerated), length
of haul, number of stop accessorials (e.g., detention, delay, fuel surcharge, stop-
offs, team drivers, loading unloading services, lumper, transloading).
Truckload-Highway Transportation: Pure over the road, one truck pick-up
and delivery. This includes container traffic to or from the port where the broker
is providing single over the road service only.

28 TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36
©Transportation Intermediaries Association. All Rights Reserved.
Warehouse Brokerage: Includes any billing amount directly attributed to
providing warehousing services.

Since 1978, the Transportation Intermediaries Association (TIA) has been
recognized as the trusted voice of the $166 billion third-party logistics industry.
TIA members are able to establish and protect, ethical, profitable, and growing
businesses in service to their customers. TIA is the only organization exclusively
representing third-party logistics companies doing business in domestic and
international commerce. TIA is the United States member of the International
Federation of Freight Forwarder Associations (FIATA).

TIA conducts an annual convention and tradeshow, with leading shippers and
carriers, and provides education, research and services to help our members
succeed.

TIA Members: Trusted. Dedicated. Connected.

The TIA 3PL Marketing Report is a product of the Transportation Intermediaries
Association. This report is intended to be used by the subscriber to whom a single
copy is distributed by the TIA for that company’s own internal business purposes
only. Any reproduction, distribution, adaptation, discussion or other use is strictly
prohibited.
© 2017 Transportation Intermediaries Association, Inc. All rights reserved.

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Alexandria, VA 22334
703.299.5700

TIA 3PL MARKET REPORT | THIRD QUARTER 2017 | ISSUE 36 29
©Transportation Intermediaries Association. All Rights Reserved.