28 March, 2019
RALEIGH, North Carolina, March 28, 2019 - The global freight forwarding market, which is an integral division of 3PL services, is expected to grow at a CAGR of 4 - 4.5 percent until 2020, according to Beroe Inc, a procurement intelligence firm. The global 3PL industry is witnessing growth largely due to the increase in e-commerce and trade activities.
The sea freight market is expected to grow at 2 - 2.5 percent CAGR until 2025 as there is a high and low (cyclic) pattern between air freight and sea freight based on the volume of the freight exported. To boost the air freight and sea freight revenue and tonnage, forwarders are focusing more on industries such as perishables, pharmaceutical, retail, and e-commerce.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The cost structure of 3PL services showcases that value-added service is the major cost component in the consolidation services with most activities being labor intensive. In the U.S., labor overtime rate is approximately 1.5 times higher than the normal rates, and in China, the overtime rate is approximately 1.1 times higher than the normal rates.
Global 3PL service providers offer one-stop-solution for customs brokerage, and customs-related solutions can be outsourced to a single player at a global level, instead of hiring a number of brokers at a local/national level. Outsourcing would ultimately accelerate the coordination; thereby resulting in faster customs clearance.
The reverse logistics overview of 3PL services globally analyzes that holiday season contributes to the highest profit rates with the total cost of $63 billion being generated only in the U.S. The reason for this growth is the e-commerce industry’s returns policies, which are the major drivers for product returns, wherein the customers are given free return/exchange options for the product purchased.
The report also includes:
Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.
To learn more about Beroe Inc, please visit http://www.beroeinc.com
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