Overview

Backwards forwarding: Vertical integration and improved logistics lower industry demand

IBISWorld’s Road Freight Forwarding market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$2bn
Annual Growth
2012 - 2017
-0.6%
Annual Growth
2017 - 2022
Profit
Employment
7,561
Business
551

Industry Threats & Opportunities

  • Operators have been forced to absorb purchase cost fluctuations for freight space and fuel
  • Logistics companies have increased the size and scope of their product offerings
  • The ongoing shift towards integrated logistics has restrained revenue growth

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    Industry Analysis & Industry Trends

    Freight forwarders purchase space on freight transport services in bulk, which they resell in smaller quantities to clients. The Road Freight Forwarding 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 obtain individually, while industry operators receive a small commission. Industry revenue is expected to contract by an annualised 0.6% over the five years through 2016-17, due to the high level of competition and changes to the industry's structure. The industry's performance is expected to weaken further in 2016-17, with revenue anticipated to fall by 1.9%, to $2.4 billion...

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    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 0.4% over the 10 years through 2021-22. This represents an underperformance of the overall economy, as real GDP is forecast to rise at a compound annual rate of 2.6% 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, there has been little product innovation, with major changes occurring upstream in the Road Freight Transport industry. The..

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    Additional Insights for the Road Freight Forwarding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Road Freight Forwarding Industry are

  • Market research and understanding
  • Optimum capacity utilisation
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Road freight service price and Total merchandise imports and exports in the Road Freight Forwarding industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    What is the Road Freight Forwarding Industry?

    Road freight forwarders primarily organise transport services and consolidate goods for transport. Consolidating loads allows road freight forwarders to achieve and pass on rates that their customers would be unable to achieve alone. Road freight forwarders do not provide underlying transport services.

    Industry Products
    General freight services
    Express freight forwarding services
    Warehousing and distribution services
    Industry Activities
    Freight forwarding by road for express deliveries
    Freight forwarding by road for general freight

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Road freight service price
  • Total merchandise imports and exports
  • Demand from manufacturing
  • Demand from wholesale trade

  • Current Performance
  • Trading landscape
  • Profitability
  • Diversification
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Road Freight Forwarding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road Freight Forwarding Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Consumer Goods Retailing
  • Agribusiness

  • Key Selling Industries
  • General Warehousing and Cold Storage
  • Petroleum Product Wholesaling
  • Road Freight Transport

  • Products & Services
  • Express freight forwarding services
  • General freight services
  • Warehousing and distribution services
  • Chart: Road Freight Forwarding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Wholesalers and retailers
  • Importers and exporters
  • Agricultural and mining operators
  • Chart: Major Market Segmentation for the Road Freight Forwarding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Road Freight Forwarding

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road Freight Forwarding Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Road 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
    Key Statistics
    Table: Industry Data for the Road Freight Forwarding Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Consolidation
  • When operators condense loads from multiple customers into a single shipment or container.
  • Fuel Surcharge
  • An additional charge introduced by transport operators to cover increased fuel costs. It is charged in addition to the freight rate.
  • Radiofrequency Identification (Rfid)
  • A wireless tracking system used to monitor goods throughout transportation.
  • Tonne-Kilometre
  • The amount of freight hauled multiplied by the distance travelled.
  • Why buy this report?

    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 Road 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 Road 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 Road 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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