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Road Freight Services
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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Abi will answer all Road Freight Services related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

Get up-to-date market and supplier info on Road Freight Services to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

Assess Supplier Risk based on key risk and compliance parameters

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

Benchmark your category performance against peers and the market

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

Get information on key factors affecting your supply

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Road Freight Services Category Intelligence

Report Coverage

Market Trends
Technology & Innovation Trends
Global Supplier List and Capabilities
Mergers and Acquisitions

Market Size

Market Size North America

$840 Bn

Market Size Europe

$710 Bn

Market Size Asia Pacific

$780 Bn

Market Size Latin America

$370 Bn

Road Freight Services Market Trends

Category Intelligence on Road Freight Services covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

Table of contents

Road Freight Services Executive Summary
Executive summary
Global Road Freight Industry Outlook
Road Freight Industry Supply Market Outlook
COVID-19 Impact on Road Freight Transportation

Road Freight Services Market Analysis
Global Market Maturity
Global Industry Trends
Global Drivers and Constraints
Regional Market Analysis
Porter's Five Forces

Road Freight Services Pricing Analysis
U.S. Van Truck Spot Freight Rate Trends
France, UK, Germany Dry Truck Road Freight Index
Suggested Pricing Model During High Market Volatility
Analysis of CPG/FMCG/F&B Shippers Engagement Practices

Truck Operating Cost Analysis
Truck Operating Cost Analysis
U.S.
U.K.
Germany
France
Switzerland
India
Freight Index Analysis

Payment Terms and Trucking Regulations
Payment Terms and Trucking Regulations in
• U.S.
• U.K.
• Germany
• France
• Switzerland
• India

Best Practices and Trends
Sourcing Models
Sourcing Models
Pros and Cons
Industry Sourcing Model Adoption
KPIs and SLAs

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Industry Outlook & Drivers

Global Road Freight Industry Outlook

The global road freight market was estimated to value ~$3.0 Tn in FY 2019, with the forecasted CAGR adjusted to 2-3% in FY 2020 due to the impacts of the COVID-19 pandemic.
Western Europe, North America, and Australia have a high shipper and supplier maturity given high advanced technology adoption.
Owing to the increase in e-commerce and global trade, Asia Pacific (APAC) and parts of Africa are expected to be the future growth-driving markets for road freight services.
Countries including China and India are home to major automotive manufacturers.
Moreover, the rising internet in developing regions in APAC is further auguring well for the road freight transport industry.

Global Road Freight Industry Trends

Buyers are increasingly looking for end-to-end supply chain solutions from service providers.
Suppliers are enhancing themselves to meet the demands of the buyers by offering them value-added services in addition to transportation services.
Rising urban traffic is pushing the demand for intermodal transportation.
The aim of zero-emissions and the sharing economy need cooperation on a new scale; road freight transport companies are likely to own the towing vehicle only, with semi-trailers and trailers becoming part of general-usage equipment available at different locations.
Further, given stringent environmental norms, players in the road freight market are turning to alternative fuels such as biofuels and electromobility.

Global Road Freight Drivers and Constraints

Drivers

Retail Sales:

Retail sales will increase by 5–6 percent, which will in turn drive the demand for trucking
Retail e-commerce is growing at 14–15 percent per annum, which will create new demand for logistics, particularly in metropolitan areas

Increasing Cross-border Trade:

Cross-border trade activities involve the sales and purchase of services and goods across overseas land borders.
It enables companies to expand their geographical and demographic footprint. This has encouraged various countries across the globe to boost their trans-border trade.
The presence of several landlocked countries, increasing trade activities, liberalization of cabotage, and better discrete income will drive cross-border road freight transportation.

Rising Tech Adoption

Market players are equipping their road freight services with innovative technologies such as hybrid powertrains, RFID tracking, and predictive monitoring to improve the efficiency of intercity transport.
They are leveraging algorithm-driven pricing structures and a digital broker application to match freight supply with demand, allowing consumers to find available freight capacity at competitive rates.

Transport Infrastructure:

An efficient transport sector with advanced infrastructure is an important element of any economy, helping to stimulate development, thus cutting the lead time and costs of trucking

Global Trade Activity:

During the last decade, increased production of high-value and light-weight goods and expanded trade among the member countries results in increased road freight transportation

GDP:

Because growth in GDP implies increased economic activity, there is a positive correlation between the development of freight transport and GDP, where any increase in GDP is directly related to the increase in road freight services in that region

Constraints

Fuel Rate

Fuel prices account for nearly 30–35 percent of trucking freight rates, thus having a major impact on pricing. Fuel prices, which have been low, are forecasted to increase in the second half of the year

Shortage of Drivers:

Driver wages account for nearly 30–35 percent of carriers' operating costs. Driver wages are expected to increase due to the prevalent shortages in the industry, coupled with a strong demand for qualified drivers and the same trend is expected to continue in countries such as the US,UK and Western Europe.

Road Freight Market Overview

The market report on the road freight transport industry reveals that large buyers have strong buyer power owing to volumes. Suppliers’ bargaining power mainly lies in their customization and value-added services in developed markets. In developing markets, large and medium buyers have strong buyer power owing to a highly fragmented industry.

Suppliers catering to foreign companies by providing sophisticated and customized services have better profit margins than other road freight services providers.

The latest business trends include hyper-customization of road transport services, on-demand delivery and smart energy logistics that cater to buyers with high market maturity.

The major cost components of the road freight transportation market include labor and fuel costs, which comprise 55–60% of the total cost. The different sourcing models in the road freight transportation market include international service providers, regional service providers, engaging with third-party logistics, hybrid sourcing model, and in-house sourcing model.

Why You Should Buy This Report

This business intelligence report on the road freight industry provides details about the best procurement practices, pricing models and SLAs and KPIs of the road freight market.
The report details the trucking industry regulations, cost structure and payment terms in countries such as the USA, Switzerland, the UK, Germany and India.
It provides an overview and SWOT analysis of key companies providing road transport services such as UPS Freight, FedEx Freight, and Schneider National, to name a few.
It offers the industry constraints and drivers, regional market outlook and Porter’s five forces analysis across various regions.
Further, this research study contains extensive insights into factors that will impact the growth of vendors of the road freight transportation market across continents.

Road Freight Services Frequently Asked Questions

At what CAGR is the global road freight market expected to grow by 2020?
From the market analysis reports from Beroe, the global road freight market is forecasted to grow at a CAGR of 4-5 percent in FY 2019-2020 owing to the surge in demand from end-user industries.

What was the estimated market value of the global road freight market in 2018?
In 2018, the global road freight market was valued at $3.2 trillion.

Which market regions have a high buyer and supplier maturity?
Western Europe, North America, and Australia have higher buyer and supplier maturity owing to the advanced technology in these regions.

Which road freight services market regions have medium maturity?
The regions with medium market maturity are India, China, New Zealand, Eastern Europe, Brazil, and South Africa.

Which regions are expected to driving the growth of road freight services in the future?
APAC and parts of Africa are expected to be the growth-driving markets for road freight services in the future owing to the increase in e-commerce and global trade.

Which sectors form the major end-users of road freight services?
The major end-users of road freight services include industries in sectors like FMCG, automotive and machinery, agro products, metallic and non-metallic minerals, oil and petrochemicals, and general freight.

Who are the top global providers in the global road freight services market?
The global providers of road freight services are UPS Freight, FedEx Freight, Schneider National, C.H. Robinson, DHL, Dachser GmbH & Co. KG.

What are the KPIs in the road freight transportation market?
On-time delivery, damage-free deliveries, on-time pick-up and reporting, loss-free deliveries are the KPIs in the road freight transportation market.

What are the key trends in the global road freight industry?
The key trends in the global road freight industry are- · Buyers are looking forward to service providers for end-to-end supply chain solutions. · Suppliers are focusing on catering to the demands of the buyers by giving them value-added services in addition to transportation services.

What are the factors driving the global road freight services market?
The key driving factors of the global road freight services market are – · Increase in retail sales driving the demand for trucking · Advanced transport infrastructure facilitating development by cutting the lead time and trucking costs · Expanded global trade activity leading to the increase in road freight transportation

What will be the impact of the growth of retail e-commerce on the global road freight services market?
The retail e-commerce growth at 14-15 percent per annum will be creating new demand for logistics, especially in metropolitan areas.

What are the constraints of the global road freight services market?
The following factors act as market constraints for the global road freight services- · As fuel prices account for 30-35 percent of trucking freight rates, it can have a major impact on the overall pricing. · There is a shortage of qualified drivers in the industry, leading to strong demand and a rise in driver wages.

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