Most freight generations said: profit pressure is getting bigger and bigger!
- Author:sofreight.com
- Source:sofreight.com
- Release Date:2024-04-23
A white paper recently released by the research consulting company Transport Intelligence shows that the participants of air transportation and shipping freight agency, freight company, third -party logistics, and courier and parcel markets are all facing profit pressure!
The Transport Intelligence survey found that most respondents (89.9%) said that profitability would be under pressure.
In addition, in addition to the influence of freight volume and freight rate fluctuations, 61.8%of freight agents believe that due to increasing competition and increasing customer negotiations, the profit margin pressure will increase in the next 12 months.
According to the report, in general, the increasingly fierce pattern of the freight forwarding industry may challenge the traditional bargaining capabilities of freight forwarding and shipper, forcing them to operate at a meager profit.
The report added that the pessimistic prediction of the increasing stress of profit margins can also be explained by the threat of the freight agent from the relationship between the shipper and the carrier.
The report of the report of the report, Viki KECKAROVSKAM, said: "We are discussing the difference between the gross profit margin, that is, the cost of transfer income from customers and the cost of paying to the carrier."
"Overall, at least in the past 10 years, there is a significant negative relationship between the carrier's freight growth and the change of the gross profit margin of the freight agency. As the freight rate decreases, the gross profit margin of freight agents will rise, air transportation and sea transportation will all have both air transportation and sea transportation.Yes, but the relationship between shipping is more obvious.
"Therefore, when air transport and maritime shipping rates decrease, the cargo generation purchase rate of carrier will also decrease rapidly. However, the sales rate of freight forwarding on its customers has not decreased so fast, mainly because of the contract structure, so the gross profit margin rises.Basically, the gross profit margin will increase when the interest rate decreases, because the freight agent will not immediately pass the lower rate to the customer.client."
When talking about the current comparison of the current profit margin and the level before the outbreak, KECKAROVSKAM said: "In terms of profitability, DSV, Kuehne + Nagel, and Expeditors are usually at a relatively high level and maintain the profit rate above the average level. 2022, DSV and Kuehne + Nagel have the highest profit margins. Compared with the level before the epidemic, the profit margin of the air transport and maritime agents
"However, the era of flourishing cargo agency profits has ended in 2022. Several major freight agency companies including Kuehne + Nagel and DSV reported in the first and second quarters of 2023 that due to the rapid decline in freight volume,Profit has fallen. "
She added: "The profitability of freight agents is quite different. Some companies' operating profit margins are about 10%, and the operating profit margins of other companies are between 2%and 4%. YesIt will be a special problem for small and medium -sized freight agents. "
"But there are other things that need to be considered. For example, management and employees, the freight agency relies on the ability of employees to be effective for effective trading; in terms of purchasing power, freight forwarding can purchase more preferential prices from shipping companies/airlines, which can benefit from bothThe lower price instead of the entire price of it can also use these lower prices to increase the market share at a lower profit margin.
The Transport Intelligence survey found that most respondents (89.9%) said that profitability would be under pressure.
In addition, in addition to the influence of freight volume and freight rate fluctuations, 61.8%of freight agents believe that due to increasing competition and increasing customer negotiations, the profit margin pressure will increase in the next 12 months.
According to the report, in general, the increasingly fierce pattern of the freight forwarding industry may challenge the traditional bargaining capabilities of freight forwarding and shipper, forcing them to operate at a meager profit.
The report added that the pessimistic prediction of the increasing stress of profit margins can also be explained by the threat of the freight agent from the relationship between the shipper and the carrier.
The report of the report of the report, Viki KECKAROVSKAM, said: "We are discussing the difference between the gross profit margin, that is, the cost of transfer income from customers and the cost of paying to the carrier."
"Overall, at least in the past 10 years, there is a significant negative relationship between the carrier's freight growth and the change of the gross profit margin of the freight agency. As the freight rate decreases, the gross profit margin of freight agents will rise, air transportation and sea transportation will all have both air transportation and sea transportation.Yes, but the relationship between shipping is more obvious.
"Therefore, when air transport and maritime shipping rates decrease, the cargo generation purchase rate of carrier will also decrease rapidly. However, the sales rate of freight forwarding on its customers has not decreased so fast, mainly because of the contract structure, so the gross profit margin rises.Basically, the gross profit margin will increase when the interest rate decreases, because the freight agent will not immediately pass the lower rate to the customer.client."
When talking about the current comparison of the current profit margin and the level before the outbreak, KECKAROVSKAM said: "In terms of profitability, DSV, Kuehne + Nagel, and Expeditors are usually at a relatively high level and maintain the profit rate above the average level. 2022, DSV and Kuehne + Nagel have the highest profit margins. Compared with the level before the epidemic, the profit margin of the air transport and maritime agents
"However, the era of flourishing cargo agency profits has ended in 2022. Several major freight agency companies including Kuehne + Nagel and DSV reported in the first and second quarters of 2023 that due to the rapid decline in freight volume,Profit has fallen. "
She added: "The profitability of freight agents is quite different. Some companies' operating profit margins are about 10%, and the operating profit margins of other companies are between 2%and 4%. YesIt will be a special problem for small and medium -sized freight agents. "
"But there are other things that need to be considered. For example, management and employees, the freight agency relies on the ability of employees to be effective for effective trading; in terms of purchasing power, freight forwarding can purchase more preferential prices from shipping companies/airlines, which can benefit from bothThe lower price instead of the entire price of it can also use these lower prices to increase the market share at a lower profit margin.