United States Contract Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The US contract logistics market is segmented by Type (Insourced and Outsourced) and End User (Aerospace, Automotive, Consumer and Retail, Energy, Hi-Tech Heath care, Industrial and Aerospace, Technology, and Other End Users ).

Market Snapshot

Study Period: 2016 - 2026
Base Year: 2021
CAGR: >3 %

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Market Overview

The United States is the biggest contributor to the contract logistics market of North America, and the country is expected to show a CAGR of over 3% during the forecast period 2020-2025. The growth in the market is driven by the increasing demand for integrated services, and advanced implementation of IoT and logistic automation. The retail industry is the key end-user of the contract logistics services, covering about 30% of the total market share followed by Hi-Tech and Automotive industries. The major companies in the sector report their revenue growth as a factor of change in the country’s GDP and technological advancements.

Scope of the Report

A comprehensive background analysis of the US contract logistic market, covering the current market trends, restraints, technological updates, and detailed information on the market concentration through the various segments and competitive landscape of the industry.

By Type
By End User
Consumer & Retail
Industrial and Aerospace
Other End Users

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Key Market Trends

Growth of Optimized Warehousing Network

The retail e-commerce of the US market has increased at a CAGR of 11.8% over the period of 2014 to 2019. The increasing demand for same-day delivery has led the companies to eliminate the geographical barriers by strategically setting up warehouses and distribution facilities to reduce time as well as cost involved in the distribution process. The companies are focusing on deploying the technological advancements on these warehouses and developing new tools to speed up the flow of products. In June 2019, DHL Supply Chain announced to add nine new warehouses in California and Virginia, increasing its overall capacity from 8 million sq. feet to 9 million sq. feet. It will also be investing in technology in the network of supply that includes upgraded automated material handling machines, vision systems, robot-assisted movement of goods, and temperature-controlled frozen storage space. With this investment in warehousing and technology, the company is expecting an increase in its productivity by 25% and processing capacity by 30%.


Trends in Contract Trucking

In the year 2019, the spot rates of the trucking industry experienced a deep trough while the contract rates managed to stay considerably flat. The flat contract rates were the result of the stable US economy, increasing consumer spending, and increasing involvement of logistics in the e-commerce sector.

In 2020, the industry is expected to face an increase in the freight rates with various factors, like truck driver’s turnover, oil price volatility, and trucking insurance cost. The trucking insurance premium rose by around 40% in the period of 2010-2018. Companies, like Celadon Group, New England Motor Freight, and HVH Transportation, went bankrupt in the year 2019, due to the falling demand in the market. It has also affected the truck driver turnover in the country, where, given the inconsistency of the market, the drivers now prefer the equally paying blue-collar jobs and localized delivery services.In 2020, the industry is facing an increase in the freight rates with various factors like truck driver’s turnover, oil price volatility and trucking insurance cost, in effect. The trucking insurance premium rose by around 40% in the period of 2010-2018. The companies like Celadon Group, New England Motor Freight and HVH Transportation went bankrupt in the year 2019 due to the falling demand in the market. It has also affected the truck driver’s turnover of the country where, given the inconsistency of the market, the drivers now prefer the equally paying blue-collar jobs and localized delivery services.


Competitive Landscape

The market is fragmented with DHL Supply Chain, XPO Logistics, Kuehne + Nagel, and CEVA Logistics as its major players. The technological advancements in the market, like logistic automation and IoT, use of sensors and UAV for the detection of human-made damages on the tracks and AI in delivery and logistics, have modernized the industry. The concept of the final mile is driving the companies to focus on mergers and collaborations that not only helps them to expand globally but also enhance their service quality holistically. The market is relatively fragmented with a large number of local and international players.

Though e-commerce is one of the contributors to the growth of the industry, companies, like Amazon, are working on the development of their insourced logistics leading to a fall in the revenue of the companies, like XPO Logistics, which fell by about USD 600 million in the year 2019.

Major Players

  1. CEVA Logistics

  2. FedEx

  3. XPO Logistics

  4. DHL International GmbH.

  5. Kuhne Nagel


Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Industry Policies and Regulations

    6. 4.6 Technological Integration


    1. 5.1 By Type

      1. 5.1.1 Insourced

      2. 5.1.2 Outsourced

    2. 5.2 By End User

      1. 5.2.1 Aerospace

      2. 5.2.2 Automotive

      3. 5.2.3 Consumer & Retail

      4. 5.2.4 Energy

      5. 5.2.5 Healthcare

      6. 5.2.6 Industrial and Aerospace

      7. 5.2.7 Technology

      8. 5.2.8 Other End Users


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 XPO Logistics

      2. 6.2.2 Kuehne + Nagel

      3. 6.2.3 DHL Supply Chain North America

      4. 6.2.4 Ryder Supply Chain Solutions

      5. 6.2.5 Hub Group

      6. 6.2.6 FedEx Logistics

      7. 6.2.7 DB Schenker

      8. 6.2.8 Burris Logistics*

    3. *List Not Exhaustive

    1. 7.1 Recent Mergers and Acquisitions



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Frequently Asked Questions

The United States Contract Logistics Market market is studied from 2016 - 2026.

The United States Contract Logistics Market is growing at a CAGR of >3% over the next 5 years.

CEVA Logistics, FedEx, XPO Logistics, DHL International GmbH., Kuhne Nagel are the major companies operating in United States Contract Logistics Market.

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