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 SWOT Analysis Chapter
The industry is in the decline phase of its economic life cycle as integrated third-party logistics services supplant industry activity. Industry value added (IVA), which measures the industry's contribution to the overall economy, is forecast to grow at a compound annual rate of 1.4% over the 10 years through 2018-19. This is below the forecast GDP growth in Australia over the same period, which is projected to rise at a compound annual rate of 2.5%.
Over the past five years, the industry has introduced limited new products and services. The industry has also exhibited increasing competition over the period as major players expand. This trend is part of increasing internal and external competition... purchase to read more