Rail, Air and Sea Freight Forwarding in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC I5292bRevenue
$11.0bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
13,540
Businesses
477
Wages
$X.Xbn
Rail, Air and Sea Freight Forwarding in Australia industry analysis
Growing freight volumes, supply chain disruptions, volatile freight rates and the consolidation of integrated logistics firms have defined the Rail, Air and Sea Freight Forwarding industry in recent years. Despite some difficult operating conditions for rail, air and sea freight forwarders, growing demand for freight transport and rising freight rates have spurred revenue to rise at an annualised 1.1% over the five years through the end of 2022-23, to $11.0 billion. Although, falling freight rates are on track to dampen revenue in 2022-23, contributing to a 0.6% decline.The COVID-19 pandemic created supply chain chaos in the form of plummeting air freight capacities and ocean shipping bottlenecks. This caused freight prices to soar, providing a boost to revenue despite constrained supply chains. These disruptions have begun to ease, placing downward pressure on prices in 2022-23. Nevertheless, high fuel costs have meant that freight rates have remained above pre-pandemic benchmarks. While elevated freight rates have lifted revenue, intense price competition limited freight forwarders' ability to pass on the full scope of freight rate hikes to downstream clients, contributing to contracting profitability.Significant consolidation activity has occurred in the global logistics sector in recent years. Larger logistics operators are becoming increasingly integrated, expanding their presence through mergers and acquisitions. These firms have expansive networks and provide a range of storage, transport and forwarding services. This has intensified competition, leading to many freight forwarders with limited networks exiting the industry.A growing domestic freight task and improving freight infrastructure will pave the way for industry growth over the coming years. A growing population and high trade volumes are poised to drive demand for freight transport and forwarding services. Strong investment in freight infrastructure over the past decade, including several projects currently in the pipeline, will allow for greater volumes of freight to be carried by rail, air and sea. While freight rates are set to continue trending downwards, weighing on revenue, this will ease pricing pressures and boost freight forwarders' profit margins. Overall, revenue will climb by an annualised 1.0% through the end of 2027-28, to $11.5 billion.
Trends and Insights
- Growing freight movements are the driving force behind the industry’s expansion. The domestic freight task and business inventories are rising, lifting demand for freight forwarders.
- The wholesalers market is expanding. Wholesalers are increasingly outsourcing freight functions on complicated international routes to enhance their competitiveness in the industry.
- Freight forwarders are often located near major ports and intermodal freight hubs. The largest of these tend to be in populous regions that have expansive freight networks.
- Expansive freight networks are important to managing customers’ supply chains, boosting demand for large integrated logistics operators and lifting industry concentration.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.1 % over the past five years, to reach an estimated $11.0bn in 2023.
Trends and Insights
More freight needs to be transported, lifting demand for freight forwarders
- Demand for rail, air and sea freight forwarding has flourished in recent years, displaying resilience amid economic disruptions caused by the pandemic and soaring inflation.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Freight forwarders are poised to reap the rewards of freight infrastructure investment
- Over the past decade, the Australian Government has invested in building rail freight infrastructure and freight intermodals. This has been part of an overarching strategy to move away from a reliance on road freight, because of road congestion and safety concerns.
Biggest companies in the Rail, Air and Sea Freight Forwarding in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
Toll Holdings | 2,243.3 | |
DHL Global Forwarding Australia | 2,074.5 | |
Linfox | 328.9 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Rail freight forwarding, Sea freight forwarding and Air freight forwarding. Rail freight forwarding is the largest segment of the Rail, Air and Sea Freight Forwarding in Australia.
Trends and Insights
Improving infrastructure has encouraged demand for rail freight forwarding services
- Forwarders hire capacity from rail freight operators on a trip basis or over a contractual period.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Road Freight Forwarding in Australia
Complementors
- Rail Freight Transport in Australia
- Water Freight Transport in Australia
International industries
- Freight Forwarding Brokerages & Agencies in the US
- Third-Party Logistics in the US
- Freight Forwarding Brokerages & Agencies in Canada
- Customs Agency and Freight Forwarding Services in New Zealand
- Freight Forwarding & Customs Agents in the UK
Table of Contents
About this industry
Industry definition
Freight forwarders primarily provide transportation services for other enterprises, using a combination of subcontracted rail, air and sea freight transport organisations. The forwarding enterprise takes on the primary responsibility for transporting contracted goods for a fee that covers the total operation. The forwarding enterprise then uses this money to pay freight carriers for the actual transport services rendered.
What's included in this industry?
Rail freight forwardingSea freight forwardingAir freight forwardingCompanies
Toll HoldingsDHL Global Forwarding AustraliaLinfoxPurchase this report to view all 3 major companies in this industry.
Related Terms
INTERMODALBULK FREIGHTNON-BULK FREIGHTFREIGHT TASKIndustry Code
ANZSIC 5292 - Rail, Air and Sea Freight Forwarding in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Growing freight movements are the driving force behind the industry’s expansion. The domestic freight task and business inventories are rising, lifting demand for freight for...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The wholesalers market is expanding. Wholesalers are increasingly outsourcing freight functions on complicated international routes to enhance their competitiveness in the in...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Freight forwarders are often located near major ports and intermodal freight hubs. The largest of these tend to be in populous regions that have expansive freight networks.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Expansive freight networks are important to managing customers’ supply chains, boosting demand for large integrated logistics operators and lifting industry concentration.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
DHL is expanding its presence in Australia’s logistics sector through acquiring Glen Cameron Group in August 2022. The acquisition will help boost DHL's freight forwarding op...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Toll Holdings's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of DHL Global Forwarding Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Linfox's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Toll Holdings, and factors influencing its performance in the industry
- Description and key data for DHL Global Forwarding Australia, and factors influencing its performance in the industry
- Description and key data for Linfox, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Australia’s domestic freight task is growing. This provides an expanding market base for rail, air and sea freight forwarders in Australia.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Freight rates have soared in the aftermath of the pandemic, pushing up purchase costs. Price competition has limited forwarders’ ability to pass on cost rises, squeezing prof...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Rail, Air and Sea Freight Forwarding industry in Australia in 2024?
The market size of the Rail, Air and Sea Freight Forwarding industry in Australia is $11.0bn in 2024.
How many businesses are there in the Rail, Air and Sea Freight Forwarding in Australia industry in 2023?
There are 477 businesses in the Rail, Air and Sea Freight Forwarding industry in Australia, which has declined at a CAGR of 2.9 % between 2018 and 2023.
Has the Rail, Air and Sea Freight Forwarding industry in Australia grown or declined over the past 5 years?
The market size of the Rail, Air and Sea Freight Forwarding industry in Australia has been growing at a CAGR of 1.1 % between 2018 and 2023.
What is the forecast growth of the Rail, Air and Sea Freight Forwarding industry in Australia over the next 5 years?
Over the next five years, the Rail, Air and Sea Freight Forwarding industry in Australia is expected to grow.
What are the biggest companies in the Rail, Air and Sea Freight Forwarding market in Australia?
The biggest companies operating in the Rail, Air and Sea Freight Forwarding market in Australia are Toll Holdings, DHL Global Forwarding Australia and Linfox
What does the Rail, Air and Sea Freight Forwarding in Australia include?
Rail freight forwarding and Sea freight forwarding are part of the Rail, Air and Sea Freight Forwarding industry.
Which companies have the highest market share in the Rail, Air and Sea Freight Forwarding in Australia?
The company holding the most market share in Australia is Toll Holdings.
How competitive is the Rail, Air and Sea Freight Forwarding industry in Australia?
The level of competition is moderate and increasing in the Rail, Air and Sea Freight Forwarding industry in Australia.
