Freight expectations: Rising business inventories have increased freight forwarding demand

The Rail, Air and Sea Freight Forwarding industry purchases space from freight transport providers and arranges for goods to be transported on behalf of clients. Industry players consolidate bundles of freight from different clients to take advantage of bulk load discounts, taking a commission on services rendered. An overall increase in demand for freight transport has lifted industry revenue over the past five years. Industry revenue is expected to grow at an annualised 1.3% over the five years through 2018-19, to reach $9.4 billion. This includes anticipated growth of 0.7% in 2018-19.Improving economic conditions have allowed businesses across the economy to gradually stock up their inventories, increasing demand for freight and associated freight forwarding services...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 14-19
1.3%
Forecast Growth 19-24
Profit
Employment
14,135
Businesses
689

Industry Threats & Opportunities

  • Improving economic conditions have increased demand for freight and freight forwarding
  • Air freight is the most expensive form of freight and its viability largely depends on oil prices
  • The subdued cost of crude oil is likely to keep purchase costs low, but may constrain revenue
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits a low level of market share concentration, with the largest four players accounting for less than 40% of industry revenue. Larger players typically provide a diverse range of logistics services. For example, Toll Holdings and DHL Global Forwarding have the capacity to manage their customers' global supply chain, offering warehousing, road freight forwarding, customs brokerage and outright road and rail freight services in Australia and overseas. Smaller operators tend to provide more knowledge-based services, owning less transport infrastructure directly. Smaller operators also tend to enter and exit the market as demand fluctuates. Con...purchase to read more.

    Additional Insights for the Rail, Air and Sea Freight Forwarding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Rail, Air and Sea Freight Forwarding Industry are

  • Experienced work force
  • Having a diverse range of clients
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Total merchandise imports and exports and Business inventories in the Rail, Air and Sea Freight Forwarding industry impact industry performance..

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    What's in this report

    What is the Rail, Air and Sea Freight Forwarding Industry?

    Industry companies primarily provide transportation services for other enterprises, using a combination of subcontracted rail, air and sea freight transport organisations. The forwarding enterprise takes on the primary responsibility for transporting contracted goods for a fee that covers the total operation. The forwarding enterprise then uses this money to pay freight carriers for the actual transport services rendered.

    Industry Products
  • Rail freight forwarding
  • Sea freight forwarding
  • Air freight forwarding
  • Industry Activities
  • Rail freight forwarding
  • Sea freight forwarding
  • Air freight forwarding
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total merchandise imports and exports
  • Business inventories
  • Road freight service price
  • Domestic freight task
  • Aircraft kilometres flown

  • Current Performance
  • Inventories and freight rates
  • Size and scale expansion
  • Profit and enterprise scale
  • Chart: Revenue Growth

  • Industry Outlook
  • Low fuel costs
  • Industry responses to demand
  • Infrastructure expansion
  • Table: Rail, Air and Sea Freight Forwarding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Rail, Air and Sea Freight Forwarding Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Consumer Goods Retailing

  • Key Selling Industries
  • Customs Agency Services
  • Domestic Airlines
  • General Warehousing and Cold Storage
  • International Airlines
  • Rail Freight Transport
  • Water Freight Transport

  • Products & Services
  • Rail freight forwarding
  • Air freight forwarding
  • Sea freight forwarding
  • Chart: Rail, Air and Sea Freight Forwarding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Manufacturers
  • Retailers
  • Chart: Major Market Segmentation for the Rail, Air and Sea Freight Forwarding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Rail, Air and Sea Freight Forwarding

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Rail, Air and Sea Freight Forwarding Industry

  • Industry Globalization
    DHL Global Forwarding (Australia) Pty Limited, Toll Holdings Limited,
  • Table: DHL Global Forwarding (Australia) Pty Limited - financial performance
  • Table: Toll Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Rail, Air and Sea Freight Forwarding Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Rail, Air and Sea Freight Forwarding Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Freight
  • Goods, mainly mineral and agricultural products, that are transported unpacked and in large quantities.
  • Freight Task
  • Total volume of bulk and non-bulk freight carried in Australia.
  • Intermodal
  • The transport of containerised goods that can roll on and off rail and ship carriers straight onto the road.
  • Non-Bulk Freight
  • Goods, including containerised intermodal transport and general freight, that are transported packaged.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Rail, Air and Sea Freight Forwarding market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Rail, Air and Sea Freight Forwarding:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Rail, Air and Sea Freight Forwarding market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Rail, Air and Sea Freight Forwarding, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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