Prof John Manners-Bell
Prof John Manners-Bell is Chief Executive of Ti, Honorary Visiting Professor at the London Metropolitan University’s Guildhall Faculty of Business and Law and an adviser to the World Economic Forum. He has over 25 years’ experience working in and analysing the global logistics sector.
Ken Lyon is Managing Director of Virtual Partners Ltd and has over 30 years of experience in the transportation industry. Ken specialises in the use of advanced information systems to manage the operations of 3PL, 4PL and Lead Logistics Providers and their trading partner networks.
Having obtained a Masters in Economics David is now Ti’s resident Economist. David manages one of Ti’s core strengths, that of quantitative analysis of a range of logistics markets, including sizing and forecasting.
Alessandro Pasetti, financial columnist, is the founder of UK-based, SEO firm Hedging Beta Ltd. He currently writes for The Loadstar, Seeking Alpha, among others. Ale also covers investment strategy and assets valuation for several European clients.
Lilith Nagorski is Head of Ti’s Research Department. Lilith joined the company as a Researcher working primarily on the providers’ area of the GSCi portal and quickly brought improvements to the organisation of the department.
- The global freight forwarding market is estimated to have contracted by 1.6% in nominal terms in 2015. In both air and sea freight, all the global metrics point to a year-on-year slowdown in volume growth.
- Ti forecasts a real 15-19 CAGR of 4.6% for the global freight forwarding market. Europe’s market share of this is expected to contract whilst emerging regions gain share in its place.
- Combined, the 20 leading forwarders are thought to represent almost 58% of the market, but small forwarders continue to effectively compete against the largest in the industry, demonstrating that economies of scale are not the be-all and end-all of the business.
- Mergers and acquisitions in the industry have disrupted the global, air and sea freight rankings. DSV’s acquisition of Uti caused the most impact with the combined entity’s forwarding revenues estimated to be around €2bn larger than DSV a year ago. Looking ahead, it would be surprising if there were no significant deals to alter the landscape of the market even more. Further consolidation seems inevitable.
- The systemic impact of low global oil prices has been a double edged sword for freight forwarders; whilst some have been able to increase their profit margin, others have taken a substantial hit to revenues as a result of declining demand for industrial projects.
- With low demand in the market, several companies look to be focussing their efforts on improving profitability rather than growth. This has been manifested through rationalisation, investments in software, and an emphasis on high value contract opportunities.
- How will the industry evolve?
- What does consolidation look like?
- How will technology impact the sector?
Market size and forecast analysis
- Which freight forwarders have the largest market share?
- How does market size vary from region to region?
Profiles of major freight forwarders
- The top 15 global freight forwarders reviewed and analysed.
Ti report explores contrast between contracting freight forwarding markets and the revenue growth of freight forwarders
- Overcapacity a burden for both air and sea freight. Ti reports that both the air and sea freight markets contracted for the year, but that sea freight suffered the most.
- The global freight forwarding market is estimated to have contracted by 1.6% in nominal terms in 2015 but forwarders’ revenues were not hit as hard as one might think.
- Europe dominates the sea freight market but it expected to lose market share at the expense of the world’s emerging regions by 2019
- The air freight forwarding market is highly fragmented with the top 20 leading forwarders holding almost 52% of the market, in terms of revenue.
21st June 2016, Bath, UK: Ti is pleased to announce that the latest edition of its best-selling report, Global Freight Forwarding, is now available to purchase. As with previous years, the report provides industry leading analysis of global, regional and country level freight forwarding markets as well as extensive profiles of the top 15 freight forwarders. In addition, for the first time, the comprehensive report also contains detailed analysis of the financial and volume performance of the most significant players.
The report, now published for its 10th consecutive year, states that whilst both the air and sea freight markets contracted, the result of continuing overcapacity, sea freight suffered the most, contracting by 2.8% in nominal terms. The collapse in the price of oil and excess capacity meant that carrier rates fell, but this did not seem to impact freight forwarders’ revenues too drastically.
According to Ti’s rankings of the top 20 sea freight forwarders, by both revenue and TEUs, the usual suspects compete for the top positions, however the real headline act from the rankings this year is DSV. In terms of sea freight revenues, when including the estimated full-year impact of its acquisition of UTi as well as the Danish company’s organic growth, DSV moves up the ranking from its former 7th position. The combined entity’s sea freight forwarding revenues are estimated to be around €800m larger compared to DSV a year ago.
The same is true for the air freight ranking by revenue, DSV has raced up the ranking into the top 10. However, the integration of UTi may well have a negative impact on growth, as the Danish company warned in its 2015 annual report.
Ti Economist David Buckby explained, “Looking ahead, it would be surprising if there were no further significant deals in the coming years to alter the landscape of the market even more. Further consolidation seems inevitable.”
Included within the report are profiles of the top 15 leading freight forwarders. These profiles include analysis of the company’s background, finances and technological capabilities, as well as a strategic profile and SWOT analysis.