Volatile markets push inventory levels up as supply chains are reassessed
Inventory levels have risen over the past decade, with the expected trend of reducing stock ...
Ti’s Global Freight Forwarding Report is out – and although you’ll have to buy it if you want to read the whole thing, Ti has given a little taster.
The market grew 2.7% in real terms in 2016 – but revenues for forwarders fell in line with freight rates.
However, as global trade picks up, global freight forwarding is set to grow at a compound annual growth rate of 4.1% between 2016 and 2020, it suggests.
The report also notes that there is little difference in gross profit margins among forwarders – the battle for business is not won on buy and sell rates. The interesting part is how they turn gross profit margin into underlying operating profit, writes Ti.
And finally – should legacy forwarders be frightened of the new breed? Not really. Ti reckons “the reality is that most of these emerging companies are set up to enhance or support today’s successful forwarders”.
However, it does warn that some will pose a direct threat and should be treated seriously. If you don’t have the cash to buy the report, it’s worth at least reading the brief. Scroll down from the link and click ‘press release’.