Industry Analysis & Industry Trends
Freight forwarders purchase transport services in bulk, which they then onsell in smaller quantities to major markets. The distinguishing feature of their activities is consolidation, a process where they combine loads from multiple clients to use transport space as efficiently as possible. The industry's competitive advantage of consolidation services has diminished in the five years through 2012-13 due to changes in the logistics market. As Australia's freight task has grown, the logistics sector has increased in sophistication. Third-party logistics services have increased rapidly and the rise of vertically integrated logistics companies has eclipsed growth in the industry. Revenue for the Road Freight Forwarding industry is expected to decline at a compound annual rate of 2.1%... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a medium level of concentration, with larger players earning a disproportionate share of revenue relative to their share of industry employment. The top four players in the industry generate 31.6% of industry revenue in 2012-13. The industry is effectively split into two strata. 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 second level of the industry is made up of smaller companies, many of them self-employed. Businesses employing less than 20 people make up an estimated 90% of the industry, according to ABS data... purchase to read more