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 Investment Chapter
The Road Freight Forwarding industry has a low level of capital intensity. It specialises in arranging the transportation of goods by road, with the majority of transport activity conducted by third-party contractors. As such, the ownership of large fleets of transport vehicles, large warehouse or distribution centres are not counted as industry activity. Larger players are also engaged in these services and other freight-transport industries. A lack of large facilities and expensive fleets means that investment requirements are well below other transport-related industries. While labour costs are significant, they are dwarfed by purchase costs, which are the industry's largest expense. For every dollar the industry spends on capital, it spends $17.43 on labour... purchase to read more