There will be winners and losers in the global 3PL race. The shakeout that is coming parallels what happened in the U.S. during the 1980s after transportation deregulation. Then, a small group of carriers grew rapidly by out-performing the competition. They won market share. Other primarily higher cost companies either went out of business, or retreated to small, defensible niches. In today?s 3PL market, there will be a small group of big operators with global reach and international skills that will dominate worldwide logistics. They will have to grow fast enough to service the largest customers and to avoid being commoditized by those customers. At the other end of the market, there will also be niche players that will often end up working for the global 3PLs. There will be limited room for mid-sized generalists.

Only time will tell who the winners and losers will be. For now, we present in thiis eLog a comprehensive analysis of the 5 3PLs that are leading in the global race, and name the second five in the top 10. This selection has been made on turnover, current coverage, breadth of skills and parent company gravitas.

1. Exel plc Berkshire, UK, London: EXL

3PL Revenue: 8.3bn Parent Revenue: 8.3bn

Coverage: Global (Service to over 95% of World GDP)

3PL Assets: 74,000 employees; 300 warehouses; 5923 tractors, 7544 trailers

Information Systems: Very good; TMS ? i2, RedPrairie, G-Log; WMS ? Irista, Topex, Insight, RedPrairie

2. Kuehne & Nagel International Schindellegi, Switzerland, SWX: KNIN

3PL Revenue: 6.9bn Parent Revenue: 6.9bn

Coverage: Global (Service to over 85% of World GDP)

3PL Assets: 19,000 employees; 50 warehouses

Information Systems: Very good; TMS ? CIEL 4000, KN Road, i2; WMS ? EXCEED

3. Schenker Assen, Germany; (U.S.) Freeport, NY,

3PL Revenue: 6.4bn Parent Revenue: 19.5bn

Coverage: Europe, Asia, South America, Africa, North America

3PL Assets: 36,000 employees; 405 warehouses

Information Systems: Good; TMS ? SWORD, Procars, ILS; WMS ? HTS, SAP, SoLiNET

4. DHL Danzas Air & Ocean Basel, Switzerland, Deutsche Post World Net (U.S.) Newark,

3PL Revenue: 5.7bn Parent Revenue: 49.7bn

Coverage: Global (Service to 99% of World GDP)

3PL Assets: 13,000 employees

Information Systems: Good; TMS ? LOGIS, proprietary; WMS ? ELIS

5. P&O Nedlloyd Rotterdam, Netherlands Euronext: Nedlloyd (Royal P&O Nedlloyd N.V.);

3PL Revenue: 4.8bn Parent Revenue: 4.8bn

Coverage: Europe, Asia, United States

3PL Assets: 10,000 employees; 166 Vessels, 1,000 containers, 2,000 trucks, 6,700 trailers

Information Systems: Good; TMS ? LOG-NET

6. TPG/TNT Hoolddorp, Netherlands, TPG NV / TNT Logistics North America Jacksonville, FL.

7. Panalpina Basel, Switzerland; (U.S.) Foster City, CA.

8. UPS Supply Chain Solutions Atlanta, GA, NYSE: UPS, (United Parcel Service)

9. Nippon Express Tokyo, Japan, Tokyo: / Nippon Express U.S.A., Inc. New York, NY

10. C.H. Robinson Worldwide Eden Prairie, MN; Nasdaq: CHRW

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