fourth party logistics Market

In terms of revenue, the global fourth party logistics market was valued at US$ 56,472.1 million in 2019 and is projected to reach US$ 78,981.5 million by 2027; it is expected to grow at a CAGR of 4.5% during the forecast period from 2020 to 2027.

A fourthparty logistics provider (4PL), also known as Lead Logistics Partner (LLP), offersa higher level of supply chain management for the customer. The 4PL provides its clients a controlling view of their supply chains, overseeing the mix of warehouses, shipping companies, and freight forwarders and agents. Typically, the 4PL does not own transportation or warehouse assets. Instead, it coordinates those aspects of the supply chain with vendors. Moreover, 4PL can coordinate activities of other 3PLs that handle various aspects of the supply chain. The 4PL functions at the integration and optimization level, while a 3PL may be more focused on day-to-day operations. The primary advantage of a 4PL relationship is that it is  focused on providing the highest level of services for the best value, as opposed to a 3PL service that may be more transaction focused. 4PL provides a single point of contact for the  supply chain. With a 3PL, there may be some aspects that customers still need to manage. The 4PL services exhibits all the processes, acting as an intermediate for 3PLs, carriers, warehouse vendors, and other participants in the supply chain. The 4PL relationship simplifies and streamlines the logistics function using technology for greater visibility and imposing operational disciplines across various partners and suppliers. The enterprise can focus on its core competencies and rely on the 4PL partner to manage the supply chain function for maximum value.

Impact of COVID-19 Pandemic on Fourth party logistics Market

Logistics and transportation is an essential element for the smooth operations of any industry including FMCG, healthcare, and retail, among others. Countries such as the US are the major countries toadopt the fourth party logistics services. The interruptions in supply chains and logistics operation due to COVID-19 outbreak is affecting the growth of key market players operating in the North America region. Around 70% of the freight that is shipped fromthe US comes by road transportation and the restrictions posed by various state governmentsin terms of goods and people movement is causing shortage of labor and manpower that is required for proper functioning of transportation network in the country. The inter country trade between the US, Canada, and Mexico is also getting affected due to restrictions impose by various governments to mitigate the spread of COVID-19 in their respective countries. Hence, the ongoing COVID-19 crisis and critical situation in the US is going to negatively impact the fourth party logistics market growth in North America at least for the next two to three quarters.

The overall global fourth party logistics market size has been derived in accordance with both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the fourth party logistics market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who take part in such a process include industry experts such as VPs, business development managers, fourth party logisticsmarket intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the fourth party logistics market.Allyn International Services, Inc.; United Parcel Service, Inc.; GEFCO Group; XPO Logistics, Inc.; Deutsche Post AG; DB Schenker; DAMCO; Logistics Plus Inc.; GEODIS; and CEVA Logistics AG are among the key companies operating in the fourth party logistics market.