In this article, we will be studying the logistics industry in the US while covering the current market condition alongside the 20 biggest logistics companies in the US. If you wish to skip our detailed analysis, you can move directly to the 5 Biggest Logistics Companies in the US.
The US Logistics Industry: An Analysis
According to a report by Mordor Intelligence, the freight and logistics market in the United States was valued at $1.27 trillion in 2023 and it is expected to grow to $1.62 trillion by 2029, at a compound annual growth rate of 4.07% over the forecast period.
The US logistics industry comprises various segments. The largest segment by end-user industry was wholesale and retail having a 30.41% share among other industries. On the other hand, the market has also been segmented into major modes which include freight transport, courier express, freight forwarding, and warehousing and storage. Freight transport had the highest share among other logistics modes in the market. You can also take a look at the biggest global logistics and shipping companies.
Evolving Trends Impacting the Industry
The logistics sector has a great potential for automation. From incorporating inventory management systems to predict and analyze inventory levels for logistics service providers to fifth-party logistics partners offering all-in-one logistics solutions, the industry has evolved. On January 13, DHL reported that the company has also been following some of the emerging trends in the market. A prime example of the company’s innovation would be its Logistics Trend Radar which is updated every 2 years and works as a benchmark for innovation in the logistics industry as it shows different social, business, and technological trends that could impact the future of logistics. Customers have also been keen to choose companies that offer sustainable delivery options. This is evident from a survey studying customers in the US, Europe, and Canada where 54% of them expressed willingness to wait for a sustainable delivery process. Back in September 2022, the company led a maiden flight with its first fully electric commuter plane.
On June 30, PwC reported that logistics companies resort to acquisitions as a potential way to become less vulnerable to economic shocks by positioning themselves for the long term. Efforts to make supply chains more integrated have been made by logistics companies in the US since this could be their differentiating factor.
A Competitive Landscape
The logistics market in the US is saturated with many market players, while FedEx Corporation (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS), and Old Dominion Freight Line (NASDAQ:ODFL) hold the biggest market shares. You can also view some of the cheap transportation stocks to buy.
FedEx Corporation (NYSE:FDX) is a leading American multinational known for its delivery services across the globe. The company has emerged with the "when it absolutely positively has to be their overnight" slogan, focusing on timely deliveries. On September 20, the company reported strong earnings for the first fiscal quarter of 2024. The company reported earnings per share of $4.55, beating EPS estimates by $0.80. The company's revenue for the quarter amounted to $21.68 billion.
On September 21, Reuters reported that the strong quarterly earnings can be attributed to the cost-cutting measures taken by FedEx Corporation (NYSE:FDX) to win customers. The company also availed the golden opportunity to pick up 400,000 more packages per day after customers from its main rival, United Parcel Service, Inc. (NYSE:UPS), switched to alternate carriers. The company was also successful in acquiring market share from the Yellow Corporation (NASDAQ:YELL) which recently went bankrupt.
United Parcel Service, Inc. (NYSE:UPS) accounts for almost a quarter of parcel deliveries in the United States and spans over the whole country. On October 4, Reuters reported that the company has been offering discounts to capture customers during a low demand season. This demand shrinkage has been since customers have been subject to higher prices for necessities such as food, fuel, and shelter. However, the company said in a statement that these discounts were being offered to attract high-value and high-volume customers. Retail stores in the US which are customers of the company also made savings while negotiating cheaper prices with the parcel delivery market leader.
Old Dominion Freight Line (NASDAQ:ODFL) is a major market player in the less-than-truckload (LTL) logistics. The company has also been subject to industry risks. The company reported lower revenues for the fiscal second quarter of 2023. This was due to a decrease in fuel surcharge revenue and declining industry demand. However, the company’s shipments per day increased from 47,000 in July to 50,000 in August. Thus, the company did win market share from its former direct competitor, Yellow Corporation (NASDAQ:YELL). The company has also been trying to mitigate demand fluctuations and reduce costs.
Thus, logistic carriers such as FedEx Corporation (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS), and Old Dominion Freight Line (NASDAQ:ODFL) fulfill the domestic shipping demands of US consumers. Let's now take a look at the biggest logistics companies in the United States.
20 Biggest Logistics Companies in the US
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Methodology
In order to compile a list of the 20 biggest logistics companies in the United States, we used the Yahoo stock screener to acquire a list of all the companies operating within the US logistics industry. To cover the extensive scope of the industry, we included integrated logistics, freight, and trucking companies. Moving on, we screened out companies with the highest market capitalizations. Thus, our metric for selecting the 20 biggest logistics companies in the US was market capitalization as of October 4, 2023.
Finally, we ranked the biggest logistics companies in the US in ascending order of their market capitalizations as of October 4, 2023.
Heartland Express, Inc. (NASDAQ:HTLD) is a major truck-loading company in the United States. The company offers cross-border freight services and serves primarily the short to medium-haul truckload market. As of October 4, Heartland Express, Inc. (NASDAQ:HTLD) is worth $1.14 billion.
Another significant US logistics provider is Marten Transport, Ltd. (NASDAQ:MRTN). The company operates in the trucking industry and caters to temperature sensitive shipments. Marten Transport, Ltd. (NASDAQ:MRTN) is worth $1.55 billion, as of October 4.
Forward Air Corporation (NASDAQ:FWRD) specializes in ground transportation and offers a wide range of freight solutions to cater to different kinds of transportation needs. Forward Air Corporation (NASDAQ:FWRD) has a market cap of $1.82 billion, as of October 4, and is one of the biggest logistics companies in the United States.
Shippers and carriers can avail truckload brokerage services from RXO, Inc. (NYSE:RXO) which is also one of the biggest logistics companies in America. The company has a network of 100,000 independent carriers. As of October 4, RXO, Inc. (NYSE:RXO) is worth $2.27 billion.
ArcBest Corporation (NASDAQ:ARCB) provides supply chain solutions across multiple industries and operates an extensive network of carriers and drivers to carry shipments across the globe. Its services are related to freight brokerage, freight, as well as truckload and less-than-truckload freight. ArcBest Corporation (NASDAQ:ARCB) is worth $2.37 billion, as of October 4.
Another renowned logistics company in the US is Werner Enterprises, Inc. (NASDAQ:WERN). The company provides freight management and freight transport services and operates a large network of trucks and trailers. As of October 4, Werner Enterprises, Inc. (NASDAQ:WERN) is worth $2.42 billion.
End-to-end supply chain solutions are offered by Hub Group, Inc. (NASDAQ:HUBG) in the United States. The company provides access to the right transport for businesses to optimize their supply chains. As of October 4, Hub Group, Inc. (NASDAQ:HUBG) is worth $2.53 billion and is one of the biggest logistics companies in the US.
Schneider National, Inc. (NYSE:SNDR) is known for its truckload, intermodal, and logistics services in America. The company holds a significant market share in the US logistics market. Schneider National, Inc. (NYSE:SNDR) has a market cap of $4.73 billion, as of October 4.
Landstar Systems, Inc. (NASDAQ:LSTR) also qualifies for our list of the biggest logistics companies in the US and is worth $6.29 billion, as of October 4. Landstar Systems, Inc. (NASDAQ:LSTR) offers third-party logistics throughout the country.
FedEx Corporation (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS), and Old Dominion Freight Line (NASDAQ:ODFL) are well-positioned logistics providers serving across the globe.
GXO Logistics, Inc. (NYSE:GXO) is a contract logistics company handling outsourced warehousing and supply chain management. GXO Logistics, Inc. (NYSE:GXO) serves as a major logistics company in the United States and has a valuation of $6.51 billion, as of October 4.
10. Knight-Swift Transportation Holdings Inc. (NYSE:KNX)
Market Capitalization: $7.87 billion
One of the biggest logistics companies in the US includes Knight-Swift Transportation Holdings Inc. (NYSE:KNX). Knight-Swift Transportation Holdings Inc. (NYSE:KNX) has a huge share in the trucking industry and is valued at $7.87 billion, as of October 4.
Another large company engaging in less-than-truckload shipping in America is XPO Logistics, Inc. (NYSE:XPO). The company operates overseas as well but has a strong financial position in the US logistics industry. As of October 4, XPO Logistics, Inc. (NYSE:XPO) is worth $8.52 billion.
C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) helps optimize supply chains to help them meet their logistics requirements through freight transportation services and logistics solutions. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) is one of the largest US logistics companies, based on its market value of $9.98 billion, as of October 4.
FedEx Corporation (NYSE:FDX), United Parcel Service, Inc. (NYSE:UPS), and Old Dominion Freight Line (NASDAQ:ODFL) occupy a strong market position in the US logistics and freight market.
TFI International Inc. (NYSE:TFII) is a major logistics company in the US, worth $10.54 billion, as of October 4. The company operates through multiple segments namely logistics, package and courier, less-than-truckload, and truckload. TFI International Inc. (NYSE:TFII) owns a huge fleet of trucks including straight trucks, owner-operated tractors, and trailers.
The 20 biggest logistics companies in the US include Saia, Inc. (NASDAQ:SAIA) which has a market cap of $10.69 billion, as of October 4. Saia, Inc. (NASDAQ:SAIA) is a less-than-truckload (LTL) trucking company and has expanded across various states in the US.
