CATEGORY

Road Freight Services

Road freight can be classified as transporting either goods and materials between two destinations with vehicles spanning from small distribution vans to long road trains to enable transportation by way of motorised and non-motorised carriages.

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CATEGORY ALERTS

Truck Drivers in Chile began an indefinite strike

November 25, 2022
alert level: High
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Truckers Strike in South Korea

November 24, 2022
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Cyberattack Stops Mexico’s transportation ministry

November 15, 2022
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Road Freight Services Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Road Freight Services category is 5.30%

Payment Terms

(in days)

The industry average payment terms in Road Freight Services category for the current quarter is 51.8 days

Compare your category performance against peers and industry benchmarks across 20+ parameters on Beroe LiVE.Ai™

Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

Supplier Type

Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Road Freight Services Suppliers


    20,271
    Total Suppliers
    985
    Diverse Suppliers
    86
    Normalized Supplier Rating
    Road Freight Services Supplier

    Find the right-fit road freight services supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    DEUTSCHE POST AG
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    1
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    58

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    71
    Social
    52
    Governance
    61
    6 Domains Performance (/100)
    Business behaviour
    55
    Human rights
    56
    Community Environment
    44
    Corporate governance
    65
    Human resources
    52
    Security Scorecard
    93

    Threat indicators
    B
    87
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    100
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    C
    79
    Application Security
    Detecting common website application vulnerbilities
    A
    97
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    99
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    deutschepost.de
    Industry average
    Adverse Media Appearances
    Environmental Issues
    2
    Workforce Health Safety Issues
    0
    Product Service Issues
    40
    Human Rights Issues
    0
    Production Supply Chain Issues
    12
    Environmental Non Compliance Flags
    54
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    13
    Fraud Issues
    0
    Labor Health Safety Flags
    38
    Regulatory Issues
    13
    Workforce Disputes
    21
    Sanctions
    0
    esg energy transition
    80
    Discrimination Workforce Rights Issues
    17
    esg controversies critical severity
    No

    Road Freight Services market report transcript



    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.

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