PRESS RELEASE BY MBD...

UK FREIGHT FORWARDING MARKET RESEARCH REPORT

RELEASED: APRIL 2008

After researching the UK freight forwarding market development and taking into account various other factors the following conclusions can be drawn from MBD's report:

MARKET REVIEW 2003-2007:

In 2007, the UK market for freight forwarding reached an estimated £16.62 billion, representing growth of 3% in the year and of 15% compared with 2003. MBD and trade opinions suggest that growth has been a feature of the UK freight forwarding market in recent years particularly during the early part of the review period, buoyed by economic growth. However annual growth is believed to have moderated from 5% during the early part of the review period, to closer to 3% during the latter part.

Profitability in the freight forwarding sector remains under pressure from overcapacity and increasing transport, security and administrative costs. Furthermore, during recent years the transport markets within and between the EU member countries have gone through progressive deregulation, including the dismantling of customs barriers between the countries, thus reducing the need for a number of the specialist services traditionally provided by the freight forwarders. In addition, the sector, and particularly the smaller operators, has been increasingly impacted by the employment terms and conditions.

MARKET FORECAST 2008-2012:

The UK market for freight forwarding is anticipated to demonstrate real term growth throughout the five year forecast period up to 2012, although in the short-term growth is expected to be restricted by a slowdown in UK economic growth. Overall, the value of the freight forwarding market is forecast to increase by 11% in real terms between 2007 and 2012. However, profitability is likely to remain low in the industry due to rising costs and intense competition, largely as a result of over-supply and diversification into forwarding areas by freighters and logistics companies.

Transportation of goods is unavoidable and demand for freight forwarding is intrinsically linked to the cost of it. Higher fuel costs are likely to impact on the road freight sector in particular as are environmental issues, while rail and maritime sectors are likely to benefit from this.

NOTE TO EDITORS:

Market & Business Development Ltd specialises in business to business market research. The range of reports and industries in which we operate in constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants.

Click here for full details of the UK Freight Forwarding Market Research Report

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