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 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 Analysis Chapter

The Road Freight Forwarding industry is diversified across the economy, and facilitates road transportation for a variety of goods. Major industry clients include manufacturers, farmers, wholesalers, retailers, importers and exporters. The industry’s core value-added service is consolidating small loads from different clients into large loads to benefit from the lower prices associated with bulk purchasing.

Industry revenue is forecast to fall at a compound annual rate of 0.6% over the five years through 2016-17, to total $2.4 billion. The increasing competition among vertically integrated logistics firms has caused revenue to decline over the past five years as clients have increasingly bypassed road freight forwarders. A further revenue decline of 1.9% i..

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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 Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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