Industry Analysis & Industry Trends
Freight forwarders purchase space on freight transport services in bulk, which they resell in smaller quantities to clients. The industry's major value add is the consolidation of loads from multiple clients to use transport space efficiently. Through this service, clients gain access to cheaper freight rates than they could achieve individually, while operators receive a small commission. The industry has contracted due to its high level of competition and changing structure, with industry revenue forecast to fall at a compound annual rate of 0.3% over the five years through 2015-16. The industry's performance is expected to be weaker in 2015-16, with revenue expected to fall by 0.7% to be worth $2.4 billion... purchase to read more
Industry Report - Industry Locations Chapter
Demand for road freight forwarding stems mainly from retail, wholesaling and manufacturing businesses. Road freight forwarding enterprises therefore tend to follow a similar distribution to these industries. New South Wales has the highest concentration of establishments, followed by Victoria. Population distribution drives the distribution of enterprises, as the eastern seaboard states hold the largest population shares. This high population density attracts a greater number of downstream industry establishments and ultimately freight forwarders.
New South Wales accounts for about the largest share of Australia's road freight tonne-kilometres. This reflects the state's high population level, its large geographical area and its high share of industries that use road freight... purchase to read more