Road Freight Forwarding in Australia Industry Market Research Report Now Updated by IBISWorld

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The Road Freight Forwarding industry is expected to face more-favourable trading conditions over the next five years. For this reason, industry research firm IBISWorld has updated its report on the Road Freight Forwarding industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Higher freight traffic lifts demand and supports industry growth

Freight forwarders purchase transport services in bulk, which they then onsell in smaller quantities to major markets. The distinguishing feature of their activities is consolidation, a process where they combine loads from multiple clients to use transport space as efficiently as possible. The industry's competitive advantage of consolidation services has diminished in the five years through 2012-13 due to changes in the logistics market. As Australia's freight task has grown, the logistics sector has increased in sophistication. According to IBISWorld industry analyst Caroline Finch, “third-party logistics services have increased rapidly and the rise of vertically integrated logistics companies has eclipsed growth in the industry.” Revenue for the Road Freight Forwarding industry is expected to decline at a compound annual rate of 2.1% over the five years through 2012-13 to be worth $2.2 billion. A 0.5% increase in industry revenue is forecast for 2012-13.

The decline in revenue in the five years through 2012-13 partly reflects the lower levels of the global oil price. Transport costs are the bulk of the industry's purchases expense. Oil prices increased rapidly in the years to 2007-08 and industry revenue was inflated as operators passed on the increasing cost of transport to their clients. This stabilised profit. Revenue declines in 2009-10 and 2010-11 reflect the drop and subsequent rises in the price of transport, due to the less volatile behaviour of global oil prices.

The Road Freight Forwarding industry has a medium level of concentration, with larger players earning a disproportionate share of revenue relative to their share of industry employment. The industry’s four largest players are DHL Global Forwarding (Australia) Pty Limited, TNT Australia Pty Ltd, Schenker Australia Pty Limited and Toll Holdings Limited.

“Australia's total freight task is expected to double by 2020, which will support future revenue growth,” says Finch. “Across major markets, demand is expected to vary”. A trend for moving manufacturing offshore to low-cost producer countries has boosted Australia's imports. Export and manufacturing markets are expected to decline commensurately. Australia's imports are dominated by semi-finished inputs in production. Consumer goods are generally transported by road freight, increasing the market for road freight forwarders. Oil price increases in the coming years are expected to put pressure on industry profit and increase road freight rates, which are likely to spur revenue growth.

For more information, visit IBISWorld’s Road Freight Forwarding report in Australia industry page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics

Forwarders do not actually move the goods themselves. Instead, they are mainly engaged in organising transport services and consolidating goods for transport. Consolidating loads allows road freight forwarders to achieve and pass on rates that their customers would be unable to achieve alone.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
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

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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