Freight Forwarding Brokerages & Agencies in the US - Industry Market Research Report

Freight Forwarding Brokerages & Agencies in the US - Industry Market Research Report

  • December 2019 •
  • 32 pages •
  • Report ID: 237512 •
  • Format: PDF
Chugging along: Increased consumer spending and e-commerce are expected to bolster freight volumes

Abstract

Freight Forwarding Brokerages & Agencies in the US

The Freight Forwarding Brokerages and Agencies industry demonstrates a low level of market share concentration. The industry’s top four operators, combined, account for below 10.0% of industry revenue and there are more than 100,000 operators in total.

Several large global operators lead the industry

o Although no single operator has a market share greater than 5.0% of revenue, several global operators dominate. UPS Supply Chain Solutions is the largest company in the industry, followed by Deutsche Post DHL Group and CH Robinson Worldwide. These industry-leaders benefit from expansive, global operations and an ability to offer numerous other integrated transportation and logistics services.

Low barriers to entry

o A low level of required capital investment and high fragmentation makes it easy for new operators to enter the industry and compete for revenue. Often new operators can successfully set up a single route or specialize in a particular geographic area or specific mode of transportation.

High barriers to success
o The industry’s high level of price competition and relative ubiquity of services can make it difficult to expand a company’s market share significantly. The industry is highly relationship-based as well, which means shippers are often not incentivized to switch service providers. Furthermore, operators must be able to scale and grow their operations rapidly in order to compete for larger contracts.

Companies in this industry arrange the transportation of freight between shippers and carriers. These operators are usually known as freight forwarders, marine shipping agents or customs brokers, and offer services for many modes of transportation. Since operators act as agents, the industry does not include the cost of arrangement as part of its revenue.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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