U.S. 3PL Revenues See Strong Annual Gains, Reports Armstrong & Associates

Why It Matters

The rebound signals the end of the freight recession, encouraging investment in logistics infrastructure and reinforcing the strategic role of 3PLs in a reshaped supply chain.

Key Takeaways

• 2025 net 3PL revenue hit $138.2 billion, +5.1% YoY.
• ITM segment grew 11% net, driven by tariff complexity.
• Tight carrier capacity lifted freight brokerage revenue.
• Warehouse vacancy rates stabilizing; big‑box demand rising.
• Forecasts predict 5‑6% annual gross growth to 2027.

Pulse Analysis

The latest Armstrong & Associates report shows the U.S. 3PL sector rebounding with a 5.1% rise in net revenue to $138.2 billion in 2025. After the freight recession that began in late 2022, carriers, shippers and brokers have navigated volatile tariffs and capacity constraints, allowing 3PLs to capture higher margins. This resurgence is reflected in a 5.0% increase in gross revenue to $323.4 billion, underscoring the sector’s resilience and its growing importance as a backbone of modern supply chains.

Segment‑level analysis reveals divergent growth drivers. International Transportation Management (ITM) posted an 11% net revenue jump, benefitting from complex tariff environments that favor firms with strong customs and compliance capabilities. Domestic Transportation Management (DTM) saw a 4.5% gross increase, propelled by tight carrier capacity and recent regulatory rulings that have tightened carrier vetting, boosting freight brokerage demand. Meanwhile, Value‑Added Warehousing and Distribution (VAWD) is stabilizing as vacancy rates level off and rent growth slows, yet demand for large‑scale, 500,000‑plus‑square‑foot facilities remains robust, driven by e‑commerce players, manufacturers and data‑center developers.

Looking ahead, Armstrong projects 5‑6% annual gross growth through 2027, with DTM expected to lead as capacity constraints persist. Investors and logistics operators should monitor tariff policy shifts, carrier insurance health and the evolving regulatory landscape, all of which can quickly alter the competitive dynamics. Companies that invest in technology‑enabled brokerage platforms and flexible warehousing solutions are positioned to capture the upside, while shippers may benefit from improved service levels and pricing power as the market rebalances after years of extreme tightness.