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... purchase to read more
Industry Report - Industry Investment Chapter
The industry is characterised by a low level of capital intensity. For every dollar spent on wages, industry firms invest an estimated $0.05 in capital. Industry operators specialise in arranging the transportation of goods by road, with the majority of transport activity conducted by third-party contractors. As industry firms typically do not own large fleets of transport vehicles or distribution centres themselves, depreciation costs are fairly low.
The industry relies primarily on labour to derive revenue, with a strong need for expertise and contacts to manage forwarding operations. While labour costs are significant, they are dwarfed by purchase costs, which are the industry's largest expense... purchase to read more