Global News Forwarders raked in record revenues in 2022 despite H2 demand collapse

A challenging demand environment in the latter months of 2022 did little to dent the fortunes of the world’s largest global third-party logistics providers (3PLs), which increased their combined revenue 13.8 percent to a record $612 billion for the full year, according to the Journal of Commerce’s annual Top 50 Global 3PL rankings, prepared by SJ Consulting Group.

Only six of the world’s 50 largest 3PLs saw their revenue recede in 2022, and nearly two-thirds of the companies on the list grew their revenue by double-digit percentages, including each of the top five providers — Amazon, Kuehne + Nagel (K+N), DHL, DSV, and DB Schenker. That’s despite global freight demand and spot rates tumbling from their historic highs to end the year at or near pre-pandemic levels.

The healthy revenue growth — with 16 of the top 50 reporting increases of more than 20 percent and four recording 40 percent-plus gains — resulted from a still-robust ocean and air freight market in the first half of the year. Some companies, such as Maersk and Uber Freight, grew their topline revenue on the back of acquisitions made in 2021 and 2022, while others, including K+N and Bolloré, did so via significantly improved revenue per shipment.

K+N increased revenue by nearly 25 percent in 2022, thanks to “historically high” revenue per container, said Satish Jindel, president of Pittsburgh-based SJ Consulting. Bolloré leveraged rate increases in freight forwarding and sustained volumes in air transport to bolster its revenue by 36 percent in 2022, even faster than the 30.3 percent growth the company recorded in 2021.

On the other end of the spectrum, 2022 was a challenging year for Sinotrans, which saw by far the largest year-over-year decline in annual revenue on the list at 17.4 percent. Jindel attributed the drop primarily to Sinotrans’ massive presence in China, which was subject to chronic COVID-19 lockdowns for much of the year.

“The rates for ocean and air freight were changing rapidly during the later part of 2022, depending on the trade lanes and thereby varying levels of impact on different companies,” he said. “That’s in addition to the impact of the strong dollar on some overseas companies.”

The 2022 rankings are also tinged by merger and acquisition activity, both past and future. Gefco, for example, was absorbed by CMA CGM subsidiary CEVA Logistics, and BDP International was sold to terminal operator PSA International, while rumors persist that DB Schenker is up for sale. JOC Top 50 Global Third-Party Logistics Providers (3PLs) Revenue figures in millions of US dollars

Revenues are primarily from non-asset third-party logistics services Many overseas companies were negatively impacted by double-digit increase in USD currency (Japanese by 16.5 percent, S. Korean by 11.4 percent, and Danish by 11.1 percent).

Source: Company Reports, SJC Estimate
Prepared by SJ Consulting Group, Inc.