Industry Analysis & Industry Trends
The Rail, Air and Sea Freight Forwarding industry has had its ups and downs over the past five years. Industry revenue growth started strong and ended in line with long-term growth trends, but faltered in-between. As the global financial crisis affected freight volumes, the associated dip in demand affected the industry between 2007-08 and 2009-10. Industry revenue went backwards in 2008-09 and profit margins and employment declined as a result. The industry recovered from 2009-10 but continued to consolidate. Over the five years through 2012-13, the industry is expected to grow at a compound annual rate of 2.4% to be worth $7.79 billion in 2012-13.
Key challenges during the period were external to the industry. World economies did not have a good year in 2008-09... purchase to read more
Industry Report - Starting a New Business Chapter
It is relatively easy to set up freight forwarding operations on single route or to specialise in a geographic area. The industry operates with low levels of capital investment, with ongoing purchases of space on rail, sea and air freight providers by far the biggest expense.
Having entered the industry, though, forwarders need sufficient volume to access volume discounts from the different modes of transport. Tight control over pick-up and delivery operations is also required, although some of this work can be subcontracted. The larger forwarders are in a better position to attract long-term business with specialist facilities and international networks. Consequently, competition is high amongst smaller forwarders... purchase to read more