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The logistics industry is vital for the economy, ensuring things get moved around efficiently. Logistics companies do various tasks such as storing stuff, managing inventory, and improving transportation and supply chains. But not all are the same, so picking one that fits your needs is important.
Check out the top logistics companies in the US that are known for being good and reliable. Whether you’re a small business looking for local transport or a big company needing global logistics, this guide will help you choose the right one.
What is Logistics, and Why is it Vital?
Logistics is the backbone of efficiently getting things from point A to point B. It involves the planning, implementing, and coordinating the movement and storage of goods, services, and information throughout a supply chain. In simpler terms, the behind-the-scenes work ensures products are manufactured, transported, and delivered to the right place at the right time.
Imagine ordering a package online. Logistics ensures the product is sourced, produced, packaged, and shipped seamlessly to your doorstep. It’s vital because without effective logistics, businesses couldn’t meet customer demands, and products would struggle to reach consumers. The process is where trucks, warehouses, and people work together to ensure you get your package on time.
How Many Logistics Companies are in the US?
Around 21,000 logistics businesses are operating in the United States. This figure represents a 1.3% increase from the previous year, 2022. These logistics companies play a crucial role in facilitating the movement of goods, managing supply chains, and providing various services related to transportation and warehousing.
The notable increase suggests the logistics industry’s huge presence in the US and reflects its adaptability to the market’s growing demands and the increasing complexity of modern supply chain management.
What are the Top Logistics Companies in the US?
These companies have proven themselves the best when moving things efficiently in the United States. Here’s a rundown of the top 10 logistics companies:
- UPS (United Parcel Service): UPS is one of the biggest logistics companies in the US. They are known for on-time deliveries and are a trusted choice for businesses.
- FedEx: Like the express lane for your packages, FedEx is one of the best for global shipping. Their services keep things moving smoothly around the world.
- DHL: DHL is the leader in international shipments. If you need something sent across borders, DHL has the expertise to make it happen seamlessly.
- Amazon Logistics: Yes, Amazon has become a major player in the logistics industry, with its freight division delivering packages at warp speed and in massive volume.
- XPO Logistics: XPO Logistics is your one-stop-shop for all things logistics – from moving stuff to improving supply chains, they’ve got it covered.
- C.H. Robinson: Offering various logistics solutions, C.H. Robinson is the go-to partner for businesses of all sizes, ensuring operations run smoothly.
- J.B. Hunt Transport Services: J.B. Hunt specializes in efficiently getting things from point A to point B. They’re the backbone of many industries with their reliable transportation services.
- Ryder System: Ryder System takes care of your wheels. Focusing on fleet management, they ensure the road is always open for your deliveries.
- Expeditors International: Expeditors International is an expert in global logistics. They ensure that your shipments reach their destination securely and on time.
- Coyote Logistics: Coyote Logistics brings innovation to the table. Known for their creative solutions, they’re your reliable partner for supply chain success.
- Old Dominion Freight Line: Old Dominion Freight Line is the champ of less-than-truckload shipping. With a commitment to outstanding service, they’ve earned their spot among the top logistics companies in the US.
Top 10 US Locations for Warehousing and Fulfillment
The following table lists the top 10 locations in the US for warehousing and fulfillment services, based upon proprietary data related to requests completed through WarehousingAndFulfillment.com.
Top 10 US Locations for Warehousing and Fulfillment
| Location | Percentage of Monthly Requests |
|---|---|
| Southern California | 13% |
| New Jersey | 7% |
| Dallas, Texas | 6% |
| Houston, Texas | 5% |
| Illinois | 5% |
| Florida | 5% |
| Nevada | 3% |
| Georgia | 3% |
| Pennsylvania | 2% |
| Missouri | 1% |
1. Southern California
First on our list is sunny Southern California. 3PL warehousing and fulfillment companies in California are some of the most hotly sought after in the entire country. Los Angeles is a tourism hot spot with tens of millions visiting the city every year. It is also home to almost four million people and close to the Port of Long Beach, so it makes sense that business owners would want to locate their warehousing and fulfillment in this area. However, due to lack of space and high labor costs, most fulfillment companies are in the areas surrounding Los Angeles.
Since the Port of Long Beach is the highest volume port in the United States, it’s ideal for businesses receiving inbound freight from overseas to locate their warehousing space near the port. Choosing a warehousing and distribution space in Long Beach would cut down on the costs of moving freight from the port. However, most of the logistics focus in this area is on receiving and distributing containers from the port. A 3PL Los Angeles is probably one of the most popular areas in the country, but San Bernardino and the Inland Empire are further from the Los Angeles metropolitan area, so warehouse space and labor costs are cheaper, but transporting freight from the port is more expensive. Currently, California warehousing has seen some issues with supply chain and port congestion, so you may want to consider some short-term alternatives until these issues are resolved.
2. New Jersey
Second on the list is the diner capital of the world: New Jersey. While this northeastern state is small in area, its proximity to the densely populated New York makes it an appealing option to business owners for outsourced warehousing and fulfillment. In fact, many businesses avoid choosing a warehouse in New York in an attempt to lower costs by using a company in neighboring New Jersey.
There are many fulfillment centers and fulfillment companies in New Jersey with transportation options available throughout the state, allowing you to ship your goods quicker and further if needed. According to the New Jersey Railroad Association, there are over 1000 miles of railway tracks from 17 freight railroads operating within the state, and several interstates connect New Jersey to other parts of the country. Finding a fulfillment center in New Jersey also gives you access to some of the largest and busiest ports in the northeast United States, such as the Port of Elizabeth and the Port of Newark. It also costs much less for labor and storage space than in New York.
Newark, New Jersey has a population of almost 300,000 and is just a few miles away from Manhattan. Many means of transportation are accessible in Newark, and more than 30 airlines operate flights out of Newark Liberty International Airport. Other viable locations in northern New Jersey are Jersey City, the second-largest city in the state, and Elizabeth, which are both near New York City and have great shipping and warehousing options available. For all of these reasons, New Jersey warehouses, fulfillment centers and 3PLs are among the most sought after in the US.
3. Dallas, Texas
Two cities made the top 10 list in the state of Texas, showing the overall popularity of the centrally located state for logistics operations. In fact, it’s difficult to imagine a better, more centrally located state than utilizing a top fulfillment company in Texas.
According to the 2020 Census Bureau, about 7.6 million people live in the Dallas/Fort Worth area, so it makes a lot of sense that Dallas is a top location for warehousing and fulfillment. Dallas is centrally located within the state, and it is a midpoint between Los Angeles, Toronto, New York City, and Mexico City. It has two airports: DFW and Dallas Love Field. USPS, UPS, FedEx, and DHL all service Dallas, and over 90% of the United States can be reached from Dallas in a maximum of two days. With a vast logistics network and over ⅔ of all fulfillment services in the state located here, you’ll have plenty of fulfillment options to choose from in Dallas.
4. Houston, Texas
They say everything’s bigger in Texas, and that is true about this state’s landmass. Texas is the second-largest state in the U.S., covering 268,597 square miles, which makes shipping goods quickly across the state difficult. Texas is also centrally located relative to the rest of the country and has a pro-business economy with lots of focus on economic development, so locating your warehousing and fulfillment services in Texas is appealing. The low tax burdens and lack of personal and corporate income tax are a plus as well.
Houston is the biggest city in Texas in both square miles and population. Houston is located near the Gulf of Mexico and houses the 50-mile-long Port of Houston. The port is highly ranked in terms of domestic and international trade, has an impressive financial infrastructure and skilled workforce, and is relatively close to other major cities in the South. For all of these reasons and more, using a Houston Warehousing Service is a great bet.
5. Illinois
Illinois, specifically the Chicago area, is another excellent location for 3PL companies. Chicago is the 3rd most populated city in America and home to a wide range of industries. Many major companies are headquartered in Chicago, and the city also provides incentives to small businesses.
Many means of transportation are available in and out of the city, making it an advantageous location for fulfillment services. Seven main interstate highways and six Class I railroads run through Chicago, and two international airports are in the city as well. The Port of Chicago, located on Lake Michigan, has an immense amount of storage space and convenient truck and rail access. Chicago is also a leader in technology, so fulfillment services here will likely use leading software, which ensures maximum efficiency.
6. Florida
The Sunshine State is widely known for being a tourism hub, with high volumes of people flocking to the many beaches and Disney World every year. However, it’s an ideal location for Florida warehouses and 3PL fulfillment centers as well. Surrounded by the Atlantic and the Gulf of Mexico, Florida has access to Latin America, Central America, and the Caribbean. Miami, specifically, is a high-demand spot for warehousing and fulfillment. Miami has a population of over 450,000 people, and the Port of Miami is known as the “Cargo Gateway of the Americas.” The port has a wide global reach, which of course makes it an advantageous location for logistics services. Miami warehouses and fulfillment centers are the go-to place for Latin American distribution as well as importers from the same area.
7. Nevada
Home to the Hoover Dam and known mostly for its nightlife, casinos, and miles of desert, Nevada is an excellent place for warehousing and fulfillment. Its proximity to the West Coast, stellar business tax climate, and affordability compared to California make it an attractive choice to locate storage and distribution services. Many interstates run throughout Nevada and provide easy access to California. Warehousing in Las Vegas is sought after because it’s directly connected to Los Angeles and surrounding areas by I-5, and it’s near Arizona and Utah. However, Reno is a great option as well because finding warehouse space is not as competitive, and it has an international airport and a mild climate. Not to mention, all major West Coast cities are within 800 miles of Reno.
8. Georgia
Georgia might be known for peaches and pecans, but it is also a great spot for logistics services. The Savannah and Charleston ports allow for the accessible reception of inbound shipments. The Georgia Port Authority has committed to continually improving sustainability in port operations, so it’s also an ideal location for those who are environmentally conscious.
Atlanta is a warehouse hub for many industries, and several colleges, sports teams, and major corporations are in the city. Located in a sort of middle location to the rest of the South, Atlanta is convenient for distributing to the Carolinas, Alabama, Florida, and of course, the rest of Georgia. Many major railways and a few major highways run through Atlanta, most notable of which is I-285.
9. Pennsylvania
The next top location on our list is a northeastern state that is rich in American history. Many people know Pennsylvania for being the site of the signing of the Declaration of Independence, but it is also home to many industries such as farming, mining, publishing. It’s a central point in the northeast and provides access to the Midwest and southern states as well. There are six ports in Pennsylvania. One of these ports is located on Lake Erie, which lowers the cost of transporting inbound shipments to your warehouse. There are also many railroads and highways for convenient transport. Philadelphia is attractive to business owners looking for warehousing and logistics services because the costs of space and labor are much cheaper than in New York City.
The top cities in Pennsylvania for logistics services are the Philadelphia and Allentown areas. Allentown is close to Philadelphia, and it has great programs to attract businesses to the city. While it’s not in Pennsylvania, it is worth mentioning that the Baltimore area a bit south is a good alternative to avoid the current freight issues in Pennsylvania. Baltimore has a high population density and the booming Port of Baltimore.
10. Missouri
St. Louis is a strategic place to locate your warehousing and fulfillment services because it’s in a central location relative to the rest of the country and you can ship your goods anywhere in the U.S. in four days maximum. St. Louis has an international airport, a port on the Mississippi River, and connections to the Illinois and Missouri rivers. Access to the West Coast and Mexico by railroad and the meeting of many interstate highways in St. Louis make this city an especially attractive place for outsourced warehousing and fulfillment since the cheapest means of shipping is ground shipping.
How to Choose the Right Logistics Companies in the US
A thoughtful selection process can make all the difference when finding the perfect logistics partner. Here are some simple yet effective ways to choose the right logistics company for your business:
- Assess Your Specific Needs: Examine what you require from a logistics company. Are you focused on local deliveries, global shipping, or both?
- Check Reputation and Reviews: Ask around and look online for reviews. A company’s reputation can tell you a lot about its reliability and service quality.
- Evaluate Experience and Expertise: Consider how long the company has been in the business and if they specialize in the logistics you require.
- Cost Transparency: Ensure the pricing is clear and fits your budget. Hidden fees can add up, so transparency is key.
- Technology and Tracking: A good logistics company should use the latest technology for efficient tracking and communication and keep you in the loop.
- Safety and Security Measures: Check what safety and security measures the company has in place for your shipments. This is particularly important for delivering valuable or sensitive goods in their best condition.
- Customer Service: A responsive and helpful team is a huge advantage. You want a partner who will address your concerns and help you keep customers satisfied.
Opting for the Best Logistics Company for Your Business
Now that you know what to look for in a logistics company, it’s time to find the perfect match for your business. Don’t hesitate to reach out and start a conversation. We’re here to help make your journey smooth and efficient.
Contact us if you have any questions or are ready to explore how our logistics solutions can benefit your business. We look forward to hearing from you and tailoring our services to meet your needs. Let’s embark on a successful logistics partnership together!
FAQs about Logistics Companies in the US
Who is the Largest US Logistics Company?
The biggest logistics company in the United States is UPS. They’re everywhere, delivering packages all over the country. If you’ve ever ordered something online, it came through UPS at some point. They’re the big dogs of the logistics industry in the US.
What are the Logistics Supply Chain Companies in the US?
Major US logistics and supply chain players include FedEx, XPO Logistics, and C.H. Robinson. FedEx and XPO Logistics focus on efficiently moving stuff. C.H. Robinson is also in the mix, ensuring goods move smoothly from point A to point B. These are some of the largest logistics companies in the US and are the backbone of getting things from warehouses to your doorstep.
How Big is the US Logistics Industry?
The US logistics industry is enormous, contributing significantly to the economy. It encompasses a wide range of services and is valued in the hundreds of billions of dollars, reflecting its substantial scale and importance in supporting various sectors.
