Freight Forwarding Services Procurement Category Market Research Report from IBISWorld has Been Updated - Hawaii News Now - KGMB and KHNL

Freight Forwarding Services Procurement Category Market Research Report from IBISWorld has Been Updated

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Buyers of freight forwarding services benefit from the large number of suppliers in the market, which heightens competition; price growth in the market has been subdued despite moderate growth in trade, industrial production and consumer spending. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Freight Forwarding Services in its growing collection of procurement category market research reports.

Los Angeles, CA (PRWEB) June 20, 2014

Freight forwarding services have a buyer power score of 3.4 out of 5, where a higher score represents greater buyer power. Moderate buyer power is the net effect of several market traits that favor buyers and several that favor suppliers. Buyers benefit from the vast number of forwarders that operate in the market, which heightens competition, says IBISWorld procurement analyst Hayden Shipp. While freight integrators (i.e. door-to-door carriers such as UPS and FedEx) and other vertically integrated suppliers that also carry freight have significant market share, most market firms employ less than 10 people and cater to buyers from small and mid-sized organizations. A buyer typically has greater negotiating power when dealing with a smaller forwarder, as smaller forwarders depend more on an individual buyer's business.

Due to the market's high level of competition, price growth has occurred at a subdued pace over the past three years despite moderate growth in trade, industrial production and consumer spending. Price growth has also been restrained by falling oil prices, says Shipp. Falling oil prices have lowered upstream carriers' fuel costs, curbing the extent of price increases for outsourced cargo transportation. Such transportation is forwarders' primary cost. Price growth is expected to remain minor during the next three years, and prices will continue to be nonvolatile. Low price volatility helps buyers accurately forecast future spending on ad hoc purchases. The freight forwarding services market's pricing structure also favors buyers, as freight forwarders bundle multiple services into their quotes, eliminating the risk of significant hidden costs.

Buyer power is curbed by forwarders' high level of specialization. Suppliers customize their services to fit buyers' needs, taking into account product type, shipping route and shipping priority. Most buyers cannot cost-effectively provide freight forwarding services in-house due to the complexity of many tasks that forwarders perform and the market's licensing barriers. Also, freight forwarders pass carriers' fuel surcharges, which can fluctuate significantly due to volatile fuel prices, on to buyers. The effect of fuel surcharges on total shipping price varies with transportation mode. Major suppliers in this market include C.H. Robinson Worldwide Inc., CEVA Group PLC, Deutsche Post AG and Expeditors International of Washington Inc.

For more information, visit IBISWorlds Freight Forwarding Services procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of freight forwarding services. Freight forwarders handle the logistics of cargo movements and ensure that products are picked up and dropped off at the specified locations and times. Freight forwarders arrange transportation and tracking, negotiate freight charges, prepare documents, arrange customs clearance, insure goods, arrange warehousing and consolidate freight services on behalf of their customers. Freight forwarders generally do not provide transportation services themselves. Instead, they subcontract freight carriers (i.e. trucking companies, rail carriers, cargo airlines and waterborne carriers) to transport buyers goods.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorlds procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/06/prweb11964505.htm

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