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 SWOT Analysis Chapter
The Road Freight Forwarding industry is in the decline phase of its economic life cycle, as vertically integrated third-party logistics services supplant industry activity. Industry value added, which measures the industry's contribution to the overall economy, is forecast to fall at a compound annual rate of 0.6% over the 10 years through 2020-21. This represents an underperformance of the overall economy, as real GDP is forecast to rise at a compound annual rate of 2.8% over the same period.
The industry has introduced limited new products and services over the past five years. While industry services are still in demand, operators have provided little innovation, with major changes occurring upstream in the Road Freight Transport industry... purchase to read more