Industry Analysis & Industry Trends
Freight forwarders purchase space on freight transport services in bulk, which they then onsell in smaller quantities to clients. The distinguishing feature of their activities is consolidation, a process where forwarders combine loads from multiple clients to use transport space as efficiently as possible. Through this service, clients gain access to cheaper freight rates than they could achieve individually. Road freight forwarders receive a commission for their service.
The value of the industry's consolidation service has diminished over the past five years due to changes in the logistics market. As Australia's freight task has grown, the logistics sector has increased in sophistication... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a low level of market share concentration, with the top four players forecast to generate less than 40% of industry revenue in 2013-14. The industry is effectively split into two levels. Large companies are active in freight forwarding as part of their (often) global logistics value offering. With sophisticated technology and a range of related services, they are able to attract large clients and purchase space in bulk. The industry's largest players earn a disproportionate share of revenue relative to their share of industry employment.
The second level of the industry is made up of smaller companies, many of them self-employed operators. Businesses employing less than 20 people make up an estimated 90% of the industry, according to ABS data... purchase to read more