$11.0bn
$XXX.Xm
13,540
477
$X.Xbn
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.
Industry revenue has grown at a CAGR of 1.1 % over the past five years, to reach an estimated $11.0bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 |
---|---|---|
Toll Holdings | 2,243.3 | |
DHL Global Forwarding Australia | 2,074.5 | |
Linfox | 328.9 |
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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.
Improving infrastructure has encouraged demand for rail freight forwarding services
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.
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ANZSIC 5292 - Rail, Air and Sea Freight Forwarding in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
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...
Learn about an industry's products and services, markets and trends in international trade.
The wholesalers market is expanding. Wholesalers are increasingly outsourcing freight functions on complicated international routes to enhance their competitiveness in the in...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
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.
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.
Expansive freight networks are important to managing customers’ supply chains, boosting demand for large integrated logistics operators and lifting industry concentration.
Learn about the performance of the top companies in the industry.
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...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Australia’s domestic freight task is growing. This provides an expanding market base for rail, air and sea freight forwarders in Australia.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
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...
Including values and annual change:
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Key data sources in Australia include:
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The market size of the Rail, Air and Sea Freight Forwarding industry in Australia is $11.0bn in 2024.
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.
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.
Over the next five years, the Rail, Air and Sea Freight Forwarding industry in Australia is expected to grow.
The biggest companies operating in the Rail, Air and Sea Freight Forwarding market in Australia are Toll Holdings, DHL Global Forwarding Australia and Linfox
Rail freight forwarding and Sea freight forwarding are part of the Rail, Air and Sea Freight Forwarding industry.
The company holding the most market share in Australia is Toll Holdings.
The level of competition is moderate and increasing in the Rail, Air and Sea Freight Forwarding industry in Australia.