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
$750 Bn
Market Size Europe
$380 Bn
Market Size Asia Pacific
$600 Bn
Market Size Latin America
$270 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
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Industry Outlook & Drivers
Global Road Freight Industry Outlook
- The global road freight market valued at $3.2 trillion in 2018, and it is forecast to grow at a CAGR of 4–5 percent in FY 2019-2020, as the demand from end-user industries surges Y-o-Y
- Regions such as Western Europe, North America, and Australia have a high buyer and supplier maturity due to advanced technology adoption
- Due to the increase in e-commerce and global trade, APAC and parts of Africa are expected to be the future growth-driving markets for road freight services
- The major end-users of road freight services include industries in the following sectors: FMCG, automotive and machinery, agro products, metallic and non-
metallic minerals, oil and petrochemicals and general freight.
- Top global providers of freight services are UPS Freight, FedEx Freight, Schneider National, C. H. Robinson, DHL, Dachser Gmb, H & Co. KG.
- KPIs in the road freight transportation market includes on-time delivery, damage- free deliveries, on-time pick-up and reporting, loss-free deliveries.
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 them giving value-added services in addition to transportation services
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
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
Road freight business intelligence says that large buyers have strong buyer power due 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 due to a highly fragmented industry
Suppliers catering to foreign companies by providing sophisticated and customized service have better profit margins compared to other providers of road freight services.
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 percent 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 road freight business intelligence report gives 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 like USA, Switzerland, UK, Germany and India.
- It provides an overview and SWOT analysis of key companies providing road transport services like UPS Freight, FedEx Freight, Schneider National, etc.
- It gives the industry constraints and drivers, regional market outlook and Porter’s five force analysis of APAC and North America regions.
