For-hire transportation industry consists of thousand of product movement specialists. The value is generated by economy of scale, specialization and efficiency. Additionally, offers shared transportation for multiple shippers.
Public warehouse are another potential value. They decrease construction cost and allow storage location for transportation of small shipments eventually requiring multiple shipper consolidation.
The concept of warehousing and shipping leads to more specialized service. Value Added Service (VAS) for example, is UPS handling all financial and order processing for Nike in their Louisville warehouse.
ISP can be third or forth part service providers. They are classified as asset or nonasset based. Third party or asset based own and operate transportation equipment or warehouses. Forth party or nonasset based arrange services by integrating third party assets or behalf their customers. Third party contracts were about $122b in 2007.