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United States Contract Logistics Market

The United States contract logistics market, valued at USD 140 billion, is driven by e-commerce demand, tech innovations, and key players like XPO and DHL, with strong growth in transportation and fulfillment.

Region:North America

Author(s):Shubham

Product Code:KRAA1767

Pages:92

Published On:August 2025

About the Report

Base Year 2024

United States Contract Logistics Market Overview

  • The United States Contract Logistics Market is valued at USD 140 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for efficient supply chain solutions, technological advancements in logistics, and the rise of e-commerce, which has necessitated more sophisticated logistics services to meet consumer expectations.
  • Key players in this market include major metropolitan areas such as Los Angeles, Chicago, and New York City. These cities dominate due to their strategic locations, extensive transportation networks, and proximity to major consumer markets, making them ideal hubs for logistics operations.
  • In 2023, the U.S. government implemented the Infrastructure Investment and Jobs Act, which allocates USD 1.2 trillion to improve transportation infrastructure. This initiative aims to enhance logistics efficiency by upgrading roads, bridges, and ports, thereby supporting the growth of the contract logistics sector.
United States Contract Logistics Market Size

United States Contract Logistics Market Segmentation

By Service:The service segmentation of the market includes various subsegments such as Transportation, Warehousing, Distribution & Fulfillment, Aftermarket/Reverse Logistics, Value-Added Services (kitting, packaging, labeling), Cold Chain Logistics, and Other Integrated Services. Among these, Transportation is a dominant subsegment due to the increasing need for efficient and timely delivery of goods across the country. The rise of e-commerce has further fueled demand for transportation services, as businesses seek to optimize their supply chains and meet customer expectations for fast delivery.

United States Contract Logistics Market segmentation by Service.

By End-User:The end-user segmentation encompasses various industries including Consumer Goods & Retail, E-commerce, Automotive & Manufacturing, High-Tech & Electronics, Pharma & Healthcare, Aerospace & Defense, and Energy, Construction & Other Industries. The E-commerce sector is currently the leading end-user, driven by the rapid growth of online shopping and the need for efficient logistics solutions to handle increased order volumes and customer expectations for quick delivery.

United States Contract Logistics Market segmentation by End-User.

United States Contract Logistics Market Competitive Landscape

The United States Contract Logistics Market is characterized by a dynamic mix of regional and international players. Leading participants such as XPO, Inc. (GXO Logistics for contract logistics), C.H. Robinson Worldwide, Inc., DHL Supply Chain (Deutsche Post DHL Group), Kuehne+Nagel International AG, FedEx Supply Chain, UPS Supply Chain Solutions, J.B. Hunt Transport Services, Inc. (J.B. Hunt 3PL/ICS), Ryder System, Inc., DB Schenker, GEODIS, Penske Logistics, GXO Logistics, Inc., CEVA Logistics, NFI Industries, Expeditors International of Washington, Inc. contribute to innovation, geographic expansion, and service delivery in this space.

XPO Logistics

1989

Greenwich, Connecticut

C.H. Robinson

1905

Eden Prairie, Minnesota

DHL Supply Chain

1969

Westerville, Ohio

Kuehne+Nagel

1890

Schindellegi, Switzerland

FedEx Supply Chain

2000

Memphis, Tennessee

Company

Establishment Year

Headquarters

Group Size (Large, Medium, Small)

U.S. Contract Logistics Revenue and YoY Growth

Warehousing Footprint (sq. ft. and sites) in the U.S.

Transportation Network Scale (owned/contracted fleet, carrier network)

On?time Delivery Rate (%) and Average Lead Time

SLA Compliance (%) and Damage Rate (%)

United States Contract Logistics Market Industry Analysis

Growth Drivers

  • Increasing E-commerce Demand:The U.S. e-commerce market is projected to reach $1.1 trillion, driven by a 15% annual growth rate. This surge in online shopping is compelling logistics providers to enhance their contract logistics services. In the future, e-commerce is expected to account for 15% of total retail sales, highlighting the need for efficient logistics solutions to manage increased order volumes and customer expectations for rapid delivery.
  • Technological Advancements in Logistics:The logistics sector is increasingly adopting advanced technologies, with the global logistics technology market expected to reach $75 billion. Innovations such as IoT, AI, and blockchain are streamlining operations, improving inventory management, and enhancing supply chain visibility. In the future, 60% of logistics companies are expected to report investing in technology to optimize their operations, indicating a strong trend towards digital transformation.
  • Rising Consumer Expectations for Fast Delivery:A recent survey indicated that 80% of consumers expect same-day or next-day delivery options. This demand is pushing logistics providers to refine their contract logistics strategies to meet these expectations. As a result, companies are investing in last-mile delivery solutions, which are projected to grow by 20% annually, reflecting the urgency to enhance service levels and customer satisfaction.

Market Challenges

  • Labor Shortages in the Logistics Sector:The logistics industry is facing a significant labor shortage, with an estimated 1.3 million positions unfilled. This shortage is exacerbated by an aging workforce and increased demand for skilled labor. Companies are struggling to attract and retain talent, which is impacting operational efficiency and service delivery, ultimately hindering growth in the contract logistics market.
  • Rising Transportation Costs:Transportation costs in the U.S. have surged by 25% since 2021, driven by fuel price increases and supply chain disruptions. In the future, the average cost per mile for trucking is expected to reach $2.50, significantly impacting logistics budgets. These rising costs are forcing logistics providers to reassess their pricing strategies and operational efficiencies, posing a challenge to maintaining profitability in contract logistics.

United States Contract Logistics Market Future Outlook

The future of the U.S. contract logistics market appears promising, driven by ongoing technological advancements and the increasing integration of automation. As companies continue to adapt to consumer demands for faster delivery, the focus on last-mile logistics will intensify. Additionally, sustainability initiatives are expected to gain traction, with logistics providers seeking eco-friendly solutions to meet regulatory requirements and consumer preferences, ultimately shaping the industry's landscape in the coming years.

Market Opportunities

  • Adoption of Automation and Robotics:The integration of automation and robotics in logistics operations is projected to reduce labor costs by up to 30%. Companies are increasingly investing in automated systems to enhance efficiency and accuracy in warehousing and distribution, presenting a significant opportunity for growth in contract logistics services.
  • Growth in Third-Party Logistics (3PL) Services:The 3PL market is expected to grow to $1 trillion, driven by businesses seeking to outsource logistics functions. This trend presents a substantial opportunity for contract logistics providers to expand their service offerings and capture a larger share of the market, particularly in specialized logistics services.

Scope of the Report

SegmentSub-Segments
By Service

Transportation

Warehousing

Distribution & Fulfillment

Aftermarket/Reverse Logistics

Value-Added Services (kitting, packaging, labeling)

Cold Chain Logistics

Other Integrated Services

By End-User

Consumer Goods & Retail

E-commerce

Automotive & Manufacturing

High-Tech & Electronics

Pharma & Healthcare

Aerospace & Defense

Energy, Construction & Other Industries

By Engagement Model

Outsourced (3PL/4PL)

Insourced

By Transportation Mode

Road

Air

Rail

Ocean/Inland Waterways

By Contract Structure

Dedicated Contract Logistics

Shared/Multiclient Operations

Hybrid Solutions

By Geography (Service Footprint)

National Coverage

Regional Coverage

Local/Micro-Fulfillment Coverage

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Federal Maritime Commission, Department of Transportation)

Manufacturers and Producers

Distributors and Retailers

Logistics Service Providers

Technology Providers

Industry Associations (e.g., Council of Supply Chain Management Professionals)

Financial Institutions

Players Mentioned in the Report:

XPO, Inc. (GXO Logistics for contract logistics)

C.H. Robinson Worldwide, Inc.

DHL Supply Chain (Deutsche Post DHL Group)

Kuehne+Nagel International AG

FedEx Supply Chain

UPS Supply Chain Solutions

J.B. Hunt Transport Services, Inc. (J.B. Hunt 3PL/ICS)

Ryder System, Inc.

DB Schenker

GEODIS

Penske Logistics

GXO Logistics, Inc.

CEVA Logistics

NFI Industries

Expeditors International of Washington, Inc.

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. United States Contract Logistics Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 United States Contract Logistics Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. United States Contract Logistics Market Analysis

3.1 Growth Drivers

3.1.1 Increasing E-commerce Demand
3.1.2 Technological Advancements in Logistics
3.1.3 Rising Consumer Expectations for Fast Delivery
3.1.4 Expansion of Global Trade

3.2 Market Challenges

3.2.1 Labor Shortages in the Logistics Sector
3.2.2 Rising Transportation Costs
3.2.3 Regulatory Compliance Issues
3.2.4 Supply Chain Disruptions

3.3 Market Opportunities

3.3.1 Adoption of Automation and Robotics
3.3.2 Growth in Third-Party Logistics (3PL) Services
3.3.3 Sustainability Initiatives in Logistics
3.3.4 Development of Smart Warehousing Solutions

3.4 Market Trends

3.4.1 Digital Transformation in Logistics
3.4.2 Increased Focus on Last-Mile Delivery Solutions
3.4.3 Integration of AI and Big Data Analytics
3.4.4 Shift Towards Omnichannel Logistics Strategies

3.5 Government Regulation

3.5.1 Transportation Security Administration (TSA) Regulations
3.5.2 Federal Motor Carrier Safety Administration (FMCSA) Guidelines
3.5.3 Environmental Protection Agency (EPA) Emission Standards
3.5.4 Occupational Safety and Health Administration (OSHA) Compliance

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. United States Contract Logistics Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. United States Contract Logistics Market Segmentation

8.1 By Service

8.1.1 Transportation
8.1.2 Warehousing
8.1.3 Distribution & Fulfillment
8.1.4 Aftermarket/Reverse Logistics
8.1.5 Value-Added Services (kitting, packaging, labeling)
8.1.6 Cold Chain Logistics
8.1.7 Other Integrated Services

8.2 By End-User

8.2.1 Consumer Goods & Retail
8.2.2 E-commerce
8.2.3 Automotive & Manufacturing
8.2.4 High-Tech & Electronics
8.2.5 Pharma & Healthcare
8.2.6 Aerospace & Defense
8.2.7 Energy, Construction & Other Industries

8.3 By Engagement Model

8.3.1 Outsourced (3PL/4PL)
8.3.2 Insourced

8.4 By Transportation Mode

8.4.1 Road
8.4.2 Air
8.4.3 Rail
8.4.4 Ocean/Inland Waterways

8.5 By Contract Structure

8.5.1 Dedicated Contract Logistics
8.5.2 Shared/Multiclient Operations
8.5.3 Hybrid Solutions

8.6 By Geography (Service Footprint)

8.6.1 National Coverage
8.6.2 Regional Coverage
8.6.3 Local/Micro-Fulfillment Coverage

9. United States Contract Logistics Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, Small)
9.2.3 U.S. Contract Logistics Revenue and YoY Growth
9.2.4 Warehousing Footprint (sq. ft. and sites) in the U.S.
9.2.5 Transportation Network Scale (owned/contracted fleet, carrier network)
9.2.6 On?time Delivery Rate (%) and Average Lead Time
9.2.7 SLA Compliance (%) and Damage Rate (%)
9.2.8 Customer Retention/Net Revenue Retention (%)
9.2.9 Technology Stack Adoption (WMS/TMS, automation, robotics utilization)
9.2.10 E-commerce/Omnichannel Capabilities (orders/day, returns processing)
9.2.11 Cold Chain Capability (temp?controlled sites, GDP compliance)
9.2.12 ESG Metrics (scope 1 & 2 intensity, alternative fuel fleet share)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 XPO, Inc. (GXO Logistics for contract logistics)
9.5.2 C.H. Robinson Worldwide, Inc.
9.5.3 DHL Supply Chain (Deutsche Post DHL Group)
9.5.4 Kuehne+Nagel International AG
9.5.5 FedEx Supply Chain
9.5.6 UPS Supply Chain Solutions
9.5.7 J.B. Hunt Transport Services, Inc. (J.B. Hunt 3PL/ICS)
9.5.8 Ryder System, Inc.
9.5.9 DB Schenker
9.5.10 GEODIS
9.5.11 Penske Logistics
9.5.12 GXO Logistics, Inc.
9.5.13 CEVA Logistics
9.5.14 NFI Industries
9.5.15 Expeditors International of Washington, Inc.

10. United States Contract Logistics Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Budget Allocation Trends
10.1.2 Supplier Selection Criteria
10.1.3 Contract Duration Preferences

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Logistics Infrastructure
10.2.2 Energy Efficiency Initiatives
10.2.3 Budget Trends for Logistics Services

10.3 Pain Point Analysis by End-User Category

10.3.1 Delivery Delays
10.3.2 Cost Overruns
10.3.3 Compliance Challenges

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Levels
10.4.2 Training and Development Needs
10.4.3 Change Management Strategies

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI
10.5.2 Expansion of Use Cases
10.5.3 Long-term Value Realization

11. United States Contract Logistics Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategy
9.1.3 Packaging Solutions

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from logistics associations and government publications
  • Review of financial statements and annual reports from major logistics providers
  • Examination of market trends and forecasts from reputable market research firms

Primary Research

  • Interviews with logistics executives and supply chain strategists in key sectors
  • Surveys targeting warehouse managers and distribution center operators
  • Focus groups with industry experts and consultants specializing in contract logistics

Validation & Triangulation

  • Cross-validation of findings through multiple data sources and expert opinions
  • Triangulation of quantitative data with qualitative insights from interviews
  • Sanity checks through peer reviews and feedback from industry stakeholders

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total logistics spending in the U.S. and its allocation to contract logistics
  • Segmentation of the market by industry verticals such as retail, healthcare, and manufacturing
  • Incorporation of macroeconomic indicators and trends affecting logistics demand

Bottom-up Modeling

  • Collection of operational data from leading contract logistics firms
  • Estimation of service pricing based on service offerings and market competition
  • Calculation of market size based on volume of goods handled and average service costs

Forecasting & Scenario Analysis

  • Development of predictive models using historical growth rates and market drivers
  • Scenario planning based on potential disruptions such as trade policies and technological advancements
  • Creation of multiple forecasts (baseline, optimistic, and pessimistic) through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Retail Contract Logistics120Logistics Directors, Supply Chain Managers
Healthcare Supply Chain Management90Operations Managers, Compliance Officers
Manufacturing Logistics Solutions80Production Managers, Procurement Specialists
Food and Beverage Distribution60Warehouse Supervisors, Quality Control Managers
E-commerce Fulfillment Services110eCommerce Operations Managers, Logistics Coordinators

Frequently Asked Questions

What is the current value of the United States Contract Logistics Market?

The United States Contract Logistics Market is valued at approximately USD 140 billion, driven by the increasing demand for efficient supply chain solutions, technological advancements, and the growth of e-commerce, which requires sophisticated logistics services to meet consumer expectations.

What are the key drivers of growth in the U.S. Contract Logistics Market?

Which cities are major hubs for contract logistics in the U.S.?

How has the Infrastructure Investment and Jobs Act impacted the logistics sector?

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