Freight Forwarding Brokerages - Agencies in The US Industry Report

INDUSTRY REPORT 48851
Freight Forwarding Brokerages &

Agencies in the US
Chugging along: Increased consumer spending and e-commerce are expected to bolster
freight volumes
Alex Petridis | June 2022
IBISWorld.com 1-800-330-3772 info@IBISWorld.com

Freight Forwarding Brokerages & Agencies in the US June 2022
Contents
ABOUT THIS INDUSTRY.................................. 4 COMPETITIVE LANDSCAPE.......................... 25
Industry Definition................................................................4 Market Share Concentration............................................. 25
Major Players...................................................................... 4 Key Success Factors........................................................25
Main Activities..................................................................... 4 Cost Structure Benchmarks............................................. 26
Supply Chain....................................................................... 5 Basis of Competition......................................................... 28
Barriers to Entry............................................................... 29
INDUSTRY AT A GLANCE................................ 6 Industry Globalization........................................................ 30
Executive Summary............................................................ 8 MAJOR COMPANIES...................................... 31
INDUSTRY PERFORMANCE............................9 Market Share Overview..................................................... 31

Related Companies........................................................... 31
Key External Drivers...........................................................9 C.H. Robinson Worldwide, Inc.......................................... 32
Current Performance........................................................ 10 Flexport Inc........................................................................34
Xpo Logistics, Inc.............................................................. 36
INDUSTRY OUTLOOK.................................... 13
OPERATING CONDITIONS............................ 38
Outlook.............................................................................. 13
Industry Life Cycle............................................................. 15 Capital Intensity................................................................. 38
Technology & Systems......................................................39
PRODUCTS & MARKETS............................... 16 Revenue Volatility..............................................................40
Regulation & Policy........................................................... 40
Supply Chain..................................................................... 16 Industry Assistance........................................................... 41
Products & Services.......................................................... 16
Demand Determinants...................................................... 17 KEY STATISTICS............................................ 43
Major Markets....................................................................18
Industry Data..................................................................... 43
GEOGRAPHIC BREAKDOWN........................ 20 Annual Change..................................................................43
Key Ratios......................................................................... 43
Key Insights....................................................................... 20 Industry Financial Statement............................................. 44
Business Locations........................................................... 23
ADDITIONAL RESOURCES............................46
Additional Resources........................................................ 46
Industry Jargon..................................................................46
Glossary............................................................................ 46
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About This Industry

Industry Definition Companies in this industry arrange the transportation of freight between shippers and carriers. These operators are
usually known as freight forwarders, marine shipping agents or customs brokers, and they offer services for many
modes of transportation. Because operators act as agents, the industry does not include the cost of arrangement as
part of its revenue.
Major Players C.H. Robinson Worldwide, Inc.
Flexport Inc.
Xpo Logistics, Inc.
Main Activities The primary activities of this industry are:
Freight forwarding
Providing marine shipping-agency services
Customs brokering
The major products and services in this industry are:
Domestic freight transportation arrangement services
International freight forwarding and customs brokerage services
Non-vessel operating common carrier services
Other
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Supply Chain
SIMILAR INDUSTRIES
Charter Flights in the US Rail Transportation in the US Ocean & Coastal Transportation Inland Water Transportation in the
in the US US
Local Freight Trucking in the US Long-Distance Freight Trucking in Local Specialized Freight Freight Packing & Logistics
the US Trucking in the US Services in the US
Management Consulting in the

US
RELATED INTERNATIONAL INDUSTRIES
Customs Agency Services in Road Freight Forwarding in Rail, Air and Sea Freight Freight Forwarding & Customs
Australia Australia Forwarding in Australia Agents in the UK
Freight Forwarding Brokerages & Freight Packing & Logistics Customs Agency and Freight
Agencies in Canada Services in Canada Forwarding Services in New
Zealand
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Industry at a Glance
Key Statistics Key External Drivers % = 2017–22 Annual Growth
$98.8bn 15.1% 2.4%

Revenue World price of crude oil Consumer spending
Annual Growth Annual Growth Annual Growth

2.0% 1.7%
Total trade value Freight transportation services
2017–2022 2022–2027 2017–2027 index
5.2% 3.3% 14.4%
E-commerce sales
$4.3bn Industry Structure

Profit
Annual Growth Annual Growth

POSITIVE IMPACT
2017–2022 2017–2022
Capital Intensity Concentration
1.4% Low Low
MIXED IMPACT
Life Cycle Revenue Volatility
4.4% Mature Medium
Profit Margin Regulation & Policy Technology Change
Medium / Steady Medium
Annual Growth Annual Growth
2017–2022 2017–2022 NEGATIVE IMPACT

Industry Assistance Barriers to Entry
-0.9pp
Low / Steady Low / Steady
Industry Globalization Competition
High / Increasing High / Steady
90,130
Businesses
Annual Growth Annual Growth Annual Growth Key Trends

2017–2022 2022–2027 2017–2027
 Operators have benefited from growth in emerging markets
-0.9% 1.9% and key trade partners
 Rising consumer spending boosted US retail sales and

manufacturing output over the past five years, contributing to
higher freight volumes
427k
Employment  Among the small companies are several start-ups aiming to
disrupt the industry
Annual Growth Annual Growth Annual Growth
2017–2022 2022–2027 2017–2027  Domestic freight volumes are anticipated to climb, boosting
industry demand
4.4% 3.2%
 With trade values rising, industry players will expand their
trade-related service lines
 Large companies will continue to expand operations and

$23.6bn include value-added services
Wages
 As total US trade volumes have increased, demand for
Annual Growth Annual Growth Annual Growth international freight services that require brokerage has risen
2017–2022 2022–2027 2017–2027
5.6% 3.3%
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Products & Services Segmentation
Major Players SWOT
STRENGTHS
Low Imports
Low Customer Class Concentration
High Revenue per Employee
Low Capital Requirements
WEAKNESSES
Low & Steady Barriers to Entry

Low & Steady Level of Assistance
High Competition
Low Profit vs. Sector Average
High Product/Service Concentration
OPPORTUNITIES
High Revenue Growth (2017-2022)

High Revenue Growth (2022-2027)
High Performance Drivers
Total trade value
THREATS
Low Revenue Growth (2005-2022)

Low Outlier Growth
World price of crude oil
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Executive Summary Chugging along: Increased consumer spending and e-commerce are
expected to bolster freight volumes
The Freight Forwarding Brokerages and Agencies industry includes operators that arrange the transportation of
freight between shippers and carriers. Demand for industry services has climbed over the past five years, as rising
economic activity led to bolstered consumer spending. E-commerce sales and industrial output levels have each
risen, boosting domestic freight volumes as a result and generating demand for freight brokerage services from
manufacturers and online retailers. Moreover, as total US trade volumes have increased, so too has demand for
international freight services that require brokerage.
Total industry revenue is expected to expand at an annualized rate of 5.2% to $98.8 billion over the five years to
2022. Growth has been slowed by a 0.9% decline in 2019. The COVID-19 (coronavirus) pandemic reduced demand
for industry services from key markets. In particular, demand from manufacturing, trade and other large markets
contracted sizably, due to poor consumer spending and reduced manufacturing output in the United States.
However, booming e-commerce sales provided the industry with a sizable demand boon, benefiting both revenue
and profit. In 2021, industry revenue was reinvigorated and increased by 10.4%, and this trend will continue in 2022
with revenue increasing 6.6%
Competition within the industry is consistently rising due to low barriers to entry and growing demand generated by
globalization and e-commerce trends. The commoditization of industry services forces players to compete primarily
on a basis of price and efficiency, which has forced smaller players to contend with strong competition from industry
leaders. As a result, large operators can offer lower costs and more dependable service, with a wide range of value-
added services. Still, the industry maintains a low level of market share concentration, with the largest player C.H.
Robinson Worldwide, Inc., occupying a market share of 8.5%.
Industry revenue is anticipated to climb at an annualized rate of 3.3% to $116.3 billion over the five years to 2027.
Renewed economic growth in the US, backed by greater consumer spending and e-commerce sales, is expected to
cause freight volumes to rise. Furthermore, total trade value is forecast to continue to grow in the United States,
operators will continue to expand their trade-based operations as emerging markets further develop and trade
grows. Overall, demand for industry services is expected to increase.
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Industry Performance
Key External Freight transportation services index

Drivers
The freight transportation services index (TSI) measures the annual output of the US transportation sector. When
the economy grows and consumer spending increases, industrial, retail and trade activity rise. As a result, demand
for transporting goods increases, including for industry services. The TSI is expected to grow in 2022, recovering
from the effects of the COVID-19 (coronavirus) pandemic.
Total trade value
Demand for international freight forwarding and customs brokering largely depends on the level of trade between the
United States and the rest of the world. Increased trade, in volume and value, spurs demand for freight forwarding
brokerages and agencies. Total trade value is expected to grow in 2022, presenting a potential opportunity for the
industry.
Consumer spending
An increase in consumer spending underpins industry growth because demand for freight forwarding and customs
brokering services depends on consumer demand for goods. An increase in consumer spending propels demand for
goods and increases demand for industry services. Consumer spending is expected to rise in 2022.
E-commerce sales
E-commerce sales have been one of the fastest-growing drivers of demand for industry services. Consumers' ability
to shop online have increased demand for courier services and pushed up volumes of smaller packages. As a
result, demand for the industry's arrangement services has increased. E-commerce sales are expected to increase
in 2022, although expansion is expected to be substantially subdued relative to growth in previous years.
World price of crude oil
Increasing oil prices raise fuel costs among carriers and increase the fees industry operators charge shippers.
Consequently, shippers may search for other avenues to ship their products, including bypassing industry operators.
The world price of crude oil is expected to rise in 2022, although the innate volatility of pricing represents a potential
threat to the industry.
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Current The Freight Forwarding Brokerages and Agencies industry is composed

Performance of companies that arrange the transportation of freight between shippers
and carriers, offering services for many modes of transportation.
In effect, operators in this industry act as middlemen between shippers and freight carriers, often known as freight
forwarders, marine shipping agents or customs brokers. As the economy expanded over much of the five years to
2022, freight volumes and demand for industry services rose as a result. Operators also benefited from growth in
emerging markets and key trade partners, which bolstered demand for the industry's trade-related services.
COVID-19 (CORONAVIRUS) IMPACT
Industry revenue growth has been subdued significantly by a decline of

0.9% in 2019, alone, but has since recovered.
As operators contended with the effects of the COVID-19 (coronavirus) pandemic, demand from key industry
markets dropped. In particular, US manufacturing facilities closed or reduced output and consumer spending
declined. Demand for industry services from manufacturers, retailers, consumers and trade-oriented markets
declined as a direct result. Plummeting revenue in 2020 was kept at bay due primarily to surging demand related to
e-commerce. With people quarantined at home and retail locations closed during the pandemic, many more people
have been shopping online, stimulating higher demand for industry services to handle distribution, packaging and
delivery. Altogether, industry revenue has increased at an annualized rate of 5.2% to $98.8 billion over the five years
to 2022. This includes growth of 6.6% in 2022, as health and safety regulations become laxed and the global
economy is resuscitated.
DEMAND CONDITIONS
Rising consumer spending boosted US retail sales and manufacturing

output over the past five years, contributing to higher freight volumes.
Moreover, the freight transportation services index, a measure of the domestic transportation sector's output, is
expected to grow at an annualized rate of 2.0% over the five years to 2022, despite a 4.6% drop in 2020, alone, due
to the coronavirus pandemic. These factors have equated to an increase in demand for transportation services to
facilitate new routes across the United States. However, as the freight TSI declined in 2020, operators encountered
lower demand.
Also contributing to rising industry revenue is growth in emerging markets. For example, key trade partners like
China and India experienced a boom in economic growth, which increased trade with the United States. Overall,
total trade value, which measures the total value of imports and exports of goods in the United States, has increased
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at an annualized rate of 1.7% in the five years to 2022. Recent performance can be considered even more
favorably when considering that the overall total trade value during the period is being skewed significantly by a
10.9% decline in 2020, alone. As freight volumes increased through 2019, demand for services like freight
forwarding and brokerage climbed. Unfortunately, overall growth in total trade value has been somewhat undone by
complications related to the coronavirus pandemic. As countries close or regulate border entries and consumer
demand falls, trade volumes worldwide dropped in 2020, before recovering in 2021 as the global economy
rebounded.
Industry operators benefit from demand for supply chain outsourcing. As global supply chain operations have
become more integrated and complex in recent years, retailers and manufacturers have turned to industry players to
handle their freight transportation needs. Consequently, the potential markets for industry companies to serve have
expanded, notwithstanding the level of freight volume. Moreover, freight forwarders and brokerages have also taken
advantage of climbing e-commerce sales. As consumers purchased more goods online, the volume and frequency
of small packages that require transportation arrangements increased. Moreover, many online retailers' business
models are based on limiting their physical locations, including logistic centers. Therefore, these companies are far
more likely to rely on forwarding and brokerage services to assist supply chain operations.
INDUSTRY COMPETITION AND OTHER TRENDS
The industry is heavily fragmented due to low barriers to entry and

intense price competition.
Consequently, numerous regional, single-establishment operators offer their services locally and benefit from
existing relationships and an in-depth knowledge of local operations. As a result, operators compete primarily on the
basis of price and efficiency. In particular, the industry's smaller players encounter strong competition from market
leaders, such as UPS. In 2020, as operators encountered lower demand for services, the average industry profit
margin, measured as earnings before interest and taxes, declined. In 2022, the average industry profit margin
accounts for 5.4% of revenue, an increase from 5.3% in 2017.
Among the industry's small companies are several start-ups aiming to disrupt the industry. For example, Flexport, a
California-based company that obtained $1.0 billion in funding in February 2019, is a freight forwarder that also
offers an online platform for businesses to more easily control entire supply chains. Flexport currently assists more
than 10,000 clients worldwide. While large industry companies have access to vast networks and can negotiate
lower rates, the industry is ripe with nontraditional companies seeking to make freight forwarding a simpler, more
efficient and affordable process.
To contend with the increasing commoditization of industry services, many players have begun to offer value-added
services, such as logistics consultation and supply chain management, to differentiate themselves from the
competition and win market share. In this area, larger industry players have also had more success because their
resources have enabled them to easily branch out into other businesses. For example, the forwarding and
brokerage operations of major companies, such as UPS, are just part of a larger logistics business that often offer
courier services and operate their own fleet of trucks and planes.
The expansion into value-added services by operators has increased the rate of mergers and acquisitions, while low
barriers to entry have encouraged new competitors to enter the market. For instance, many non-industry companies,
such as truck carriers, have branched out into the industry to add value to their traditional carrier services.
Altogether, the number of industry operators is expected to decrease at an annualized rate of 0.9% to 90,130
companies over the five years to 2022. Conversely, growth in industry demand has led to increased employment,
regardless of company consolidation. The number of workers expected to rise at an annualized rate of 4.4% to
427,022 people over the five years to 2022.
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Historical Performance Data

Freight
Domestic transportation
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand services index
Year ($m) ($m) (Units) (Units) (Units) (Units) (Units) ($m) ($m) (Index)
2013 61,513 19,855 74,747 69,330 286,431 N/A N/A 15,487 N/A 11,212
2014 66,001 20,406 82,030 76,620 300,332 N/A N/A 16,314 N/A 11,515
2015 72,675 21,923 93,232 87,242 326,506 N/A N/A 17,635 N/A 11,893
2016 75,072 22,013 99,577 93,532 344,950 N/A N/A 17,884 N/A 12,188
2017 76,691 22,461 100,364 94,073 344,161 N/A N/A 17,937 N/A 12,484
2018 82,026 24,277 87,553 81,497 338,258 N/A N/A 19,274 N/A 12,845
2019 81,255 25,564 87,867 81,617 362,291 N/A N/A 20,560 N/A 13,126
2020 83,535 26,466 88,248 82,187 372,456 N/A N/A 20,415 N/A 12,630
2021 92,638 27,277 93,534 86,848 404,164 N/A N/A 22,250 N/A 13,629
2022 98,786 28,523 97,241 90,130 427,022 N/A N/A 23,552 N/A 14,043
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Industry Outlook
Outlook Revenue generated by the Freight Forwarding Brokerages and Agencies
industry is expected to grow consistently over the five years to 2027,
alongside a rebounding domestic economy.
For example, consumer spending and industrial activity are each expected to expand during the period, reversing
the affects of the COVID-19 (coronavirus) pandemic. This is projected to lead to higher freight volumes.
Consequently, demand for industry services is expected to increase. Moreover, operators will continue to expand
their international businesses as emerging markets further develop and the value of US trade grows. Altogether,
industry revenue is forecast to climb at an annualized rate of 3.3% to $116.3 billion over the five years to 2027.
MAINTAINING GROWTH
As US economic growth returns over the next five years, the domestic
economy will continue to maintain a more prominent role in industry
growth.
During the five-year period, consumer spending is forecast to increase at an annualized rate of 1.9%, while e-
commerce sales specifically are expected to climb at an annualized rate of 8.2%. As these core drivers of industry
performance shake off the influences of the coronavirus in 2020, the industry is expected to re-enter a rhythm of
consistent growth. Overall, these increases should lead to higher retail and industrial output during the period. As a
result, domestic freight volumes are anticipated to climb as retailers and manufacturers transport goods between
their facilities and markets, creating more opportunities for industry players to gain business. In particular, the
proliferation of e-commerce will continue to support industry revenue growth.
The popularity of next-day delivery services and other online shopping services has incentivized operators to
expand the size of their warehouses and delivery networks across the country. Manufacturers have also received
greater demand from new emerging retailers that are setting up their own distribution networks. As regional
restrictions fade, it has become increasingly important to ship individual orders and warehouse stocks across the
country with relatively little notice. This has resulted in greater demand for industry services because brokerages
offer a solution to excess demand for transportation services, facilitating a range of services from long-distance
freight and international trade to last-mile delivery.
With total trade value forecast to climb an annualized 2.8% over the next five years, industry players are set to
expand their trade-related service lines. Trade-related services include the brokerage and arrangement of
transportation and logistics services, such as packaging, shipping and warehouse between the United States and
destination countries. Low carrier costs, which have been caused by overcapacity in the international ship and air
carrier markets, will enable sea- and air-forwarding to continue to play a larger role in the industry. Moreover, as the
global supply chain continues to involve more international players, operators are anticipated to place more focus on
their foreign operations, some of which may be linked to US operations.
COMPETITION AND OTHER TRENDS
Profit margins in this industry are generally slim due to intense price-
competition among operators.
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Even as the industry continues to expand and automation plays an increasing role in operations, the average
industry profit margin, measured as earnings before interest and taxes, is projected to remain constrained over the
next five years. Industry profitability is expected to stagnate over the five years to 2027, as the effects of the
COVID-19 (coronavirus) pandemic are weathered, demand will begin to once again normalize. Consequently, the
average industry profit margin is expected to reach an estimated 5.4% of revenue in 2027.
Internally, larger companies will continue to expand their operations and include value-added services, which may
give them an individual opportunity to expand their profit relative to the average operator. Operators that are part of
larger logistics companies, such as UPS and DHL, will be able to better integrate supply chain services and cut
costs, giving them a competitive advantage. Customers wishing to outsource their entire supply chain are more likely
to partner with integrated logistics companies, pushing more business toward those operators' forwarding and
brokerage services. As a result, wages are forecast to account for a consistent share of total revenue over the next
five years, which will limit growth in the average industry profit margin.
Other types of logistics companies, including carriers, are anticipated to expand their value-added service offerings
into forwarding, brokerage and supply chain management. Combined with greater demand for supply chain
outsourcing, this trend is expected to increase the number of industry operators. In total, the number of industry
enterprises is forecast to increase at an annualized rate of 1.9% to 99,171 companies over the five years to 2027.
Similarly, increased demand for industry services will heighten the need for more workers. The total number of
industry employees is anticipated to climb an annualized 3.2% to 500,653 people during the same period.
Performance Outlook Data

Freight
Year ($m) ($m) (Units) (Units) (Units) (units) (units) ($m) ($m) (Index)
2022 98,786 28,523 97,241 90,130 427,022 N/A N/A 23,552 N/A 14,043
2023 102,452 29,881 99,149 91,782 441,596 N/A N/A 24,370 N/A 14,356
2024 105,949 31,069 100,565 92,953 455,126 N/A N/A 25,134 N/A 14,645
2025 109,400 32,230 101,994 94,142 469,064 N/A N/A 25,913 N/A 14,909
2026 112,946 33,460 104,676 96,568 485,157 N/A N/A 26,793 N/A 15,182
2027 116,322 34,703 107,527 99,171 500,653 N/A N/A 27,638 N/A 15,457
2028 118,846 35,723 110,314 101,756 514,106 N/A N/A 28,352 N/A 15,608
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Industry Life Cycle The life cycle stage of this industry is Mature
LIFE CYCLE REASONS
Technological changes primarily focus on improving efficiencies

The rate of industry growth typically trends in line with US GDP
Wholehearted market acceptance of the industry's services
The Freight Forwarding Brokerages and Agencies industry is in the mature phase of its life cycle. Over the 10 years
to 2027, industry value added (IVA), defined as the industry's contribution to the overall economy, is forecast to grow
at an annualized rate of 4.4%. During the same period, United States GDP is anticipated to grow an annualized
2.0%. While a faster growing IVA (relative to GDP) may be indicative of a growth phase, this industry's rate of IVA
growth has been bolstered by strong demand for international services. For instance, rapid economic growth in
emerging markets that were not as deeply affected by the global downturn prior to the period increased demand for
the industry' trade-related services. Also, e-commerce and retail sales have contributed to the industry's strong
growth as companies transport more goods in line with rising sales.
Since the industry acts as a middleman in the transportation of goods, demand for industry services grows in line
with the overall economy. Macroeconomic variables such as consumer spending, industrial production and trade all
influence the volume of goods transported domestically and internationally. Consequently, a strong economy
delivers strong industry growth, and by the same token industry growth tends to exaggerate macroeconomic
performance.
Outsourcing manufacturing and importing semi-finished goods, coupled with greater acceptance of just-in-time
inventory management, has increased demand for freight transportation arrangements during the past few decades.
Larger operators have responded to these trends by providing integrated logistics services for supply chain
management in addition to freight forwarding and customs brokering. Current improvements in services and
technologies are focused on increasing efficiency, decreasing transport costs and improving customer service. No
new developments are expected to revolutionize freight forwarding and customs brokering. The industry's services
are well-known and wholeheartedly accepted by its major markets, both of which are indicative of the mature phase.
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Products & Markets

Supply Chain Key Buying Industries Key Selling Industries
1st Tier 1st Tier
Manufacturing in the US Local Freight Trucking in the US
Wholesale Trade in the US Ocean & Coastal Transportation in the US
Retail Trade in the US Inland Water Transportation in the US
Transportation and Warehousing in the US Transportation and Warehousing in the US
Agriculture, Forestry, Fishing and Hunting in the US Moving Services in the US
Construction in the US Long-Distance Freight Trucking in the US
Packaging & Labeling Services in the US Local Specialized Freight Trucking in the US
2nd Tier Tank & Refrigeration Trucking in the US
Consumers in the US Rail Transportation in the US
2nd Tier
Utilities in the US
Manufacturing in the US
Construction in the US
Products & Services
Many operators offer customs brokerage services, as well as freight

forwarding services, to provide integrated logistics services for clients.
This trend includes the provision of services across international borders and is expected to continue as the industry
continues to solidify its status as a mature industry and as globalization progresses. Many major players note that
the majority of growth is derived from international markets, especially those emerging in Asia.
DOMESTIC FREIGHT TRANSPORTATION ARRANGEMENT SERVICES AND FORWARDING
Domestic freight transportation arrangement services and forwarding are

the primary source of revenue in this industry, accountable for 50.8% of
industry revenue in 2022, altogether.
This segment includes all aspects of arranging the domestic transportation of goods, including all regulatory
requirements and related documentation for shipment of goods within the United States.
Industry operators represent one of the parties to the shipment (for example, the shipper) and ensure proper
transportation in accordance to their client's instructions and requirements. Beyond handling the regulatory
requirements and ensuring proper transportation of the shipment, industry participants handle all logistical concerns,
including ensuring financial transactions between all parties involved are copasetic. Demand for domestic services
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rose in 2020, as the COVID-19 (coronavirus) pandemic prompted much greater demand for domestic e-commerce
shipments. However, this was in large part offset by demand from domestic manufacturers falling in 2020, as
factories reduced or stopped their operations. Moreover, lower consumer spending prompted fewer orders placed
and fewer shipments between retail locations, which were closed for portions of the year entirely, as well as the
relevant factories and distribution facilities.
INTERNATIONAL FREIGHT FORWARDING AND CUSTOMS BROKERAGE SERVICES
International freight forwarding and customs brokerage services account

for 36.9% of industry revenue in 2022.
This segment's share of revenue has been fairly stable because clients consistently require freight forwarders and
customs brokers to engage in international trade operations. Demand for these services declined in 2020, as the
coronavirus pandemic disrupted the global economy and halted international trade flows.
Customs brokers advise importers in determining proper classifications and calculating the value of goods being
transported. Additionally, importers require information surrounding international quota and tariff regulations.
Brokers' operations often expand beyond customs because they must contact other government agencies, such as
the US Department of Agriculture (USDA) on meat importation, the US Environmental Protection Agency (EPA) on
vehicle emission standards or the US Food and Drug Administration (FDA) on product safety.
The development of online application and processing systems has created competition for customs brokerage
services in recent years as larger clients have been able to integrate customs processing in-house. However,
according to Section 641 of the Tariff Act, the Treasury must individually and personally license customs brokers,
and brokerages must obtain a separate license. A copy of the insurance policy must be filed with the Surface
Transportation Board at the US Department of Transportation for the protection of the forwarders' customers. To be
licensed, a freight forwarder brokerage or agency must pass a comprehensive test. Therefore, due to the complexity
of customs regulations and licensing costs, many businesses will continue to outsource these services to industry
operators.
Freight forwarders advise clients on the best rates, routes and modes of transportation to or from any area in the
world. Forwarders match services to clients, ensuring that products are moved in the most efficient manner. The
large volume of freight handled by forwarders gives them advantages over individual shippers. The freight
forwarding segment has not fluctuated greatly for the same reason agencies and brokerages remain relatively
stable. Clients engaging in international trade require these services.
NON-VESSEL OPERATING COMMON CARRIER SERVICES
Non-vessel operating common carriers (NVOCCs) act as carriers but do

not own vessels.
Often described as virtual carriers, NVOCCs accept the required responsibilities of legal carriers, such as issuing
bills of lading or air waybills and assuming responsibility for the shipments, but do not physically transport the goods
(though some own or lease containers). NVOCC services are expected to account for 8.9% of industry revenue in
2022.
OTHER
Other freight-related services include storage and distribution services

and represent 3.4% of industry revenue.
Very few operators offer these services because many of them lack the infrastructure and facilities required.
Generally, only the larger operators offer these additional services.
Process consulting involves industry participants that provide consulting services to importers, exporters and other
companies. This segment advises companies about methods, process, technology, systems and transportation
modes. Some companies also provide information regarding integrated logistics management and warehouse
operations.
Demand Overall freight volumes, including the transportation of consumer goods,

Determinants manufacturing inputs and commodities, primarily drive demand for
industry services.
Consequently, demand for industry services can be linked to the overall macroeconomic state of the economy.
Increasing consumer spending typically leads to greater industrial activity and retail sales, which increases the need
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to transport goods and use industry services. US domestic consumption and investment also drives import demand
as many goods are sourced abroad. This generates additional demand for international arrangement, forwarding
and brokerage services. Similarly, increasing foreign demand for US goods increases demand for the industry's
trade-focused services. As a result, the industry is highly dependent on the health of global economic conditions,
including consumption, investment and overall trade flows.
The growing acceptance of just-in-time (JIT) inventories in downstream industries has also created rising demand
for transportation services as manufacturers purchase smaller, more frequent deliveries. JIT enables companies to
improve profitability by purchasing materials only as needed, thereby reducing inventory costs. Those companies
need freight forwarding brokerages and agencies more often, boosting demand for this industry.
E-commerce sales have been one of the fastest drivers on industry growth in recent years. Consumers' abilities to
buy online have increased demand for courier services and pushed up volumes of smaller packages. As a result,
demand for the industry's arrangement services has increased.
Lastly, demand for industry services is also affected by competition from other logistics providers. Shipping carriers,
such as couriers and trucking companies, are increasingly trying to integrate supply chain services and provide
complete logistics services. As a result, demand for industry services is being diverted to non-industry companies.
Major Markets
Manufacturers using industry services for domestic destinations account

for an estimated 33.6% of industry revenue.
Companies in this market typically use industry services to ship goods to other manufacturers, distributors or
retailers. Wholesalers and other forms of distributors using industry services for domestic destinations account for
16.7% of demand in the industry. Distributors act as middlemen between manufacturers and end markets (i.e.
retailers) and as a result often use industry services to transport freight between their clients. In 2020, demand from
manufacturers and wholesalers struggled, as a result of the COVID-19 (coronavirus) pandemic. However, demand
from wholesalers in particular was bolstered by a spike in e-commerce sales, which resulted in new demand for
industry services to manage product distribution, packing and delivery.
EXPORTERS AND IMPORTERS
Exporters account for an estimated 18.5% of industry revenue in 2022.

This segment includes manufacturers, wholesalers and others that wish to ship freight out of the United States. As a
result, the performance of this sector is highly dependent on US export growth. Similarly, importers are another
major source of industry revenue, accounting for 25.3% of revenue. Like exporters, this market consists includes
manufacturers, wholesalers and others, but with clients wishing to import freight into the United States. Import clients
may also include foreign companies needing services such as arrangements and management of regulatory and
documentation compliance. Over the past five years, the segment's share of industry revenue has seen growth as
the US economy expanded and continued to import more goods.
Exports in this industry are Low and Steady
Imports in this industry are Low and Steady
Despite its reliance on traded goods for revenue, the Freight Forwarding Brokerages and Agencies industry's
18 IBISWorld.com
services cannot be imported or exported. Companies in the industry arrange the domestic and international
transportation of many different types of freight including goods and commodities, among others. As a result,
international trade is not counted in this industry. For more information regarding international trade, please refer to
the various IBISWorld manufacturing and agriculture reports.
19 IBISWorld.com
Geographic Breakdown
Key Insights
California California Maine Vermont Connecticut California

15,551 Est. $14.7bn 13.4% -0.2% $93,238.4 59,461
Most Establishments Highest Revenue Fastest Growth Slowest Growth Highest Average Most Employees
Wage
State Data for Freight Forwarding Brokerages & Agencies in the US (2022)
Establishments Revenue Employment Wages

State Establishments Growth Rate Revenue Growth Rate Employment Growth Rate Wages Growth Rate
(2017-2022) (2017-2022) (2017-2022) (2017-2022)
Alabama 937 -0.2% $842.1m 9.5% 3,244 3.9% $198.6m 10.8%
20 IBISWorld.com

(2017-2022) (2017-2022) (2017-2022) (2017-2022)
Alaska 217 -5.0% $126.3m 1.5% 560 -1.0% $24.0m 0.3%
Arizona 1,657 2.1% $1.3bn 12.0% 5,803 4.0% $378.4m 13.4%
Arkansas 885 0.4% $1.0bn 10.3% 4,938 2.9% $298.3m 12.2%
California 15,551 0.6% $14.7bn 8.4% 59,461 3.7% $3.3bn 7.5%
Colorado 830 -3.0% $557.2m 4.9% 2,194 0.5% $115.7m 4.4%
Connecticut 639 -1.8% $670.8m 5.4% 1,858 2.0% $173.2m 4.1%
Delaware 265 4.7% $179.3m 12.2% 986 4.7% $65.6m 10.9%
Florida 10,430 0.3% $7.4bn 8.8% 30,688 5.6% $1.6bn 8.6%
Georgia 3,794 0.3% $5.2bn 10.4% 19,966 5.8% $1.3bn 12.1%
Hawaii 254 1.2% $114.2m 7.0% 954 3.5% $36.4m 4.3%
Idaho 369 -3.1% $151.6m 7.0% 896 2.4% $39.9m 9.1%
Illinois 5,697 -0.9% $8.7bn 7.4% 29,664 3.6% $1.9bn 7.2%
Indiana 1,282 -3.3% $1.6bn 6.7% 10,370 4.6% $476.6m 8.9%
Iowa 706 -1.6% $646.2m 7.6% 3,632 3.4% $185.3m 8.4%
Kansas 519 -2.6% $589.1m 10.8% 4,209 11.3% $286.8m 17.9%
Kentucky 1,225 -1.0% $2.4bn 10.5% 15,044 5.6% $986.8m 14.2%
Louisiana 883 -1.2% $684.2m 7.2% 3,463 3.7% $191.2m 7.2%
Maine 246 -0.6% $60.5m 13.4% 435 11.0% $26.2m 22.3%
Maryland 785 -4.3% $893.7m 4.0% 3,284 -0.9% $178.3m 3.9%
Massachusetts 1,277 -1.9% $1.0bn 7.3% 4,903 4.3% $281.1m 8.0%
Michigan 2,122 -1.8% $2.4bn 7.2% 11,700 4.4% $594.7m 7.7%
Minnesota 1,514 -0.4% $1.8bn 7.5% 7,595 6.3% $382.7m 6.9%
Mississippi 495 0.7% $333.4m 9.5% 2,736 10.1% $98.2m 10.0%
Missouri 1,715 -2.3% $1.3bn 5.7% 7,025 4.9% $330.2m 5.4%
Montana 352 -2.2% $224.3m 7.6% 528 1.2% $30.2m 9.4%
Nebraska 474 -1.5% $250.8m 6.7% 1,050 2.7% $54.0m 6.5%
Nevada 753 2.8% $508.2m 10.1% 2,711 3.5% $124.9m 8.6%
New 119 -3.9% $161.3m 7.9% 1,229 17.4% $48.4m 13.2%

Hampshire
New Jersey 3,772 -1.7% $5.6bn 6.4% 18,641 4.7% $1.1bn 5.9%
New Mexico 192 2.0% $135.9m 12.3% 464 7.1% $26.7m 18.9%
New York 6,798 -2.1% $6.3bn 5.8% 24,388 2.0% $1.4bn 5.1%
North Carolina 2,019 -1.7% $2.2bn 8.5% 11,650 8.8% $587.7m 10.7%
21 IBISWorld.com

(2017-2022) (2017-2022) (2017-2022) (2017-2022)
North Dakota 323 -0.6% $298.3m 8.5% 1,031 4.6% $51.9m 9.1%
Ohio 2,520 -2.7% $3.0bn 6.9% 15,139 3.3% $826.4m 8.6%
Oklahoma 575 0.2% $257.8m 8.5% 1,494 9.2% $59.2m 8.0%
Oregon 1,422 0.1% $1.4bn 6.6% 5,283 4.3% $256.7m 4.5%
Pennsylvania 2,373 -1.0% $3.7bn 8.1% 16,172 5.4% $852.4m 8.7%
Rhode Island 157 -0.9% $61.4m 6.4% 334 1.3% $17.9m 4.9%
South Carolina 1,040 -2.5% $1.1bn 5.2% 4,847 -1.4% $255.9m 4.3%
South Dakota 196 -2.7% $82.8m 1.3% 253 -6.6% $13.0m -2.7%
Tennessee 2,003 0.5% $2.5bn 10.1% 11,795 4.9% $645.6m 11.3%
Texas 12,092 0.1% $11.0bn 8.6% 50,118 4.4% $2.5bn 8.5%
Utah 729 1.0% $499.3m 11.1% 3,029 8.2% $175.6m 13.2%
Vermont 39 -12.3% $55.7m -0.2% 282 6.1% $18.2m 7.0%
Virginia 1,349 -1.6% $1.4bn 6.7% 7,391 4.6% $401.1m 6.4%
Washington 2,259 -1.8% $2.4bn 8.2% 8,941 5.9% $524.6m 10.2%
West Virginia 92 -1.5% $56.1m 9.7% 305 3.4% $22.7m 13.5%
Wisconsin 1,195 0.2% $1.0bn 8.0% 4,179 4.2% $222.7m 7.0%
Wyoming 49 -5.8% $25.8m 1.0% 54 2.8% $2.6m 4.8%
22 IBISWorld.com
Business Locations Most industry activity is concentrated in states with high levels of manufacturing, trade and other commercial
activities, namely the Southeast, West and Southwest regions. Due to its large population and commercial base, the
Southeast region is accountable for the largest share of industry establishments with 25.6%. The Southeast
represents 25.8% of the United States population and houses major US ports, including ports throughout Alabama,
Florida and Louisiana. Florida accounts for 10.1% of industry establishments, alone, which makes it the third-most
concentrated with industry locations. The Southeast region also hosts a large proportion of rail freight employees
and rail maintenance and support enterprises.
The West is the second-largest region in terms of industry establishments, with 20.4% in total. Ports on the West
Coast are major transit points, especially for goods entering the country from Asia. Freight is then transported via
roads and railways from ports on the West Coast to the East Coast. California has three of the largest container
ports in the United States: Los Angeles, Long Beach and Oakland. Asian products bound for the East Coast can
save a week moving through Los Angeles, as opposed to a 25-day trip through the Panama Canal. As a result,
California alone houses 15.6% of all locations, which is the largest concentration for any individual state.
The Panama Canal expansion project was completed in 2016 and has the potential to divert demand away from
West Coast ports as shipping companies continue to take advantage of the increased capacity. Cargo ships are now
able to traverse the canal more quickly and transport goods directly to Southeast ports. The project has made the
canal bigger, enabling larger ships and a higher volume of ships to pass through it. As a result, the canal permits
previously unable vessels to travel through from the West to the US Atlantic and Gulf coasts. As more goods are
handled in the Southeast, demand for industry operators in the region may also increase.
The Southwest region accounts for 15.1% of all industry establishments, making it the third-most populated in the
US. Texas is, consequently, the second-most concentrated state with industry establishments, with 12.6% of
industry establishments located in Texas alone. Similarly, the Mid-Atlantic also houses 15.0% of industry
establishments. In particular, New York houses 7.1% of industry establishments, which accounts for the fourth-
largest state-specific establishment concentration.
As a traditional manufacturing base, the Great Lakes region also houses a significant share of establishments. This
share is proportional to the number of consumers, as the region holds 13.3% of establishments and 14.3% of the US
population. Furthermore, establishments in the Southwest states benefit from freight generated by nearby low-cost
producers in Mexico and Central America.
23 IBISWorld.com
24 IBISWorld.com
Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
The Freight Forwarding Brokerages and Agencies industry is estimated to have a low level of market share
concentration. The top four players are estimated to account for less than 10.0% of industry revenue, combined,
with the largest operator C. H. Robinson Worldwide, Inc. occupying 8.5% of market share. Despite the presence of
large international corporations, the industry is dominated by small- and medium-sized enterprises. Further, more
than half all employer-establishments employ less than four people. Additionally, more than 75.0% of establishments
are classified as nonemployers and this share is anticipated to increase over the next five years. Conversely,
industry consolidation has resulted in enterprises exiting the industry at a 0.9% annualized rate over the past five
years, while establishments are falling at an annualized rate of 0.6%. While the industries' largest players have
expanded, them doing so has not prevented smaller companies from entering the industry.
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
Factors
Ability to quickly adopt new technology:
Clients are increasingly seeking forwarders with strong information technologies for monitoring purposes.
Understanding government policies and their implications:

As this industry includes customs brokerages, it is essential to understand the changing customs tariffs and
schedules.
Provision of superior after sales service:

Superior service to clients creates opportunities for future transactions.
Access to quality personnel:

Since the customs-broking function is built on personal trust, having access to quality personnel who can develop
and maintain excellent customer relations is essential.
Having contacts within key markets:

Connecting shippers and carriers is the key industry operation. Hence, a company with contacts across various
commercial and geographic markets is able to arrange a greater number of transportation offerings.
25 IBISWorld.com
Cost Structure
Benchmarks
Profit
The industry has a low market share concentration and is very

competitive, which leads to low industry profitability. In addition, the
majority of service costs are passed on to consumers in the form of
transportation charges and fees for additional services, so profitability
does not typically fluctuate as much as revenue.
Over the past five years, despite growing demand, intense competition
has pressured the average industry profit margin. Nonetheless, industry
profit margins, measured as income before taxes and interest, actually
increased during most of the period, reaching a peak of 5.4% of
revenue in 2022. While, the COVID-19 (coronavirus) outbreak led to
reduced demand for industry services and consequently emphasized
price-competition and reduced profitability, profit has rebounded in
2021 and normalized.
Wages
Industry wages are estimated to account for 23.9% of industry revenue

in 2022, on average. The industry requires highly skilled personnel with
detailed understanding of customs regulations and tariff duties.
Employers are reluctant to dismiss staff even in dismal economic
conditions, so most cut back hours to reduce costs while maintaining
employees and their knowledge base. In addition, most brokers earn
wages based on commission per transaction. In periods of fewer client
transactions, wage costs essentially fall with revenue. Conversely,
operators with large distribution and warehousing operations do employ
a large number of workers to handle cargo. These employees are less
skilled and many of them work part-time. Wages' share of revenue has
risen over the past five years. However, operators have invested in
labor-saving technology and streamlined operations through supply
chain integration, limiting wage growth.
26 IBISWorld.com
Purchases
The majority of industry costs are related to purchasing transportation

services from other companies and warehousing operations that are
not part of the arrangement. The cost of arrangement typically refers to
the transportation services operators purchase from carriers and then
sell to clients or transportation services purchased on behalf of clients.
In either case, operators act as agents and brokers and thus do not
include these costs as part of revenue. Sourcing and brokerage fees
are also major costs, such as the cost of subcontracting services to
smaller specialized players and renting equipment for particular
consignments. Purchases are estimated to represent 45.8% of industry
revenue in 2022, making it by far the largest cost encountered by
industry operators.
Marketing
Marketing and advertising costs represent an estimated 0.2% of

revenue. The industry is heavily relationship-based and does relatively
little consumer side business, which makes marketing and advertising a
relatively inefficient way to expand operations and revenue.
Depreciation
Depreciation costs are relatively low compared with much of the

transportation sector, due to the lower capital intensity of operations,
depreciation costs are 0.6% of revenue.
Rent
Rent expenses account for an estimated 3.8% of revenue in 2022, on

account of short-term equipment hiring and long-term office and
technology pieces.
27 IBISWorld.com
Utilities
Utilities have consistently been accountable for just 0.5% of revenue

over the past five years.
Other Costs
Other costs, including general, administrative expenses and other non-

classified expenses, represent the remaining 19.9% of revenue in 2022.
Basis of Competition in this industry is High and the trend is Steady

Competition
Overall, the Freight Forwarding Brokerages and Agencies industry has a
28 IBISWorld.com
high level of competition.

Companies in the industry not only compete with one another, but they experience competition from shippers' in-
house operations.
INTERNAL COMPETITION
The Freight Forwarding Brokerages and Agencies industry is very

competitive and is expected to remain so for the foreseeable future.
Factors that companies compete on include price, quality of service, information systems capability and global
network capacity. Larger companies also offer services beyond traditional offerings, including full responsibility for
cargo and door-to-door service both internationally and domestically. Much of this is in response to globalization and
the increasing international and intercontinental trade. Small forwarders and brokers which do not have the capacity
to offer such services have sought to negate some of the effects by offering a more personalized experience that
large carriers do not or cannot offer.
An increasing number of industry operators are emphasizing customer service as an integral function of their supply
chain management processes. One area of concern for many customers is parcel tracking; as customers frequently
inquire about the status and information about their shipment, industry operators have launched innovated new
ways for customers to track packages. This includes online freight tracking, which provides a real-time location and
estimated delivery date.
EXTERNAL COMPETITION
For the most part, external competition stems from in-house operations of
major shippers.
While this is not a major threat at the moment, this threat could increase as global networks grow and consolidation
continues. For example, United Postal Service (UPS) is not only one of the largest freight forwarders, but also the
world's largest package delivery company. This improves UPS's ability to gain considerable market share in both
industries.
Barriers to Barriers to Entry in this industry are Low and the trend is Steady
Entry
Barriers to entry in the Freight Forwarding Brokerages Barriers to Entry Checklist
and Agencies industry are low. Low capital investment
and high fragmentation add to ease of entry in the market, Competition High
and new entrants can set up a single route or focus on a
specific geographical area with relative ease. However, Concentration Low
growth can be very difficult as companies may need to
expand infrastructure nationally or internationally, as well
Life Cycle Stage Mature
as heavily invest in more powerful software and systems.
For example, large operators have developed extensive
systems that involve terminal facilities and tracking Technology Change Medium
technologies to service shippers' needs.
Regulation & Policy Medium
Once new companies enter the industry, sufficient shipper
volume must be generated to be eligible for discounts Industry Assistance Low
from freight transportation companies. Developing
relationships with freight transportation companies may
also contribute toward this goal; for example, a new
forwarder's promise to work only with a particular carrier
could incentivize that carrier to work with and offer
discounts to the new entrant, especially if they believe the
forwarder has the ability to scale and grow quickly. New
companies must compete with large forwarders that have
the manpower and logistical capability to plug into a larger
network, which is marketed to customers and places them
in a better position to attract business. Consequently,
competitive conditions for smaller forwarders are fierce.
To survive, smaller players can specialize in niche
markets with particular routes and align themselves with
local customers.
29 IBISWorld.com
Industry Globalization in this industry is High and the trend is Increasing

Globalization
This industry is inherently globalized by the nature of its business. While there are numerous small domestic
operators, the largest players in the industry have operations that span internationally. For example, the largest
player, C.H. Robinson Worldwide has hundreds of branches throughout the world and earns a significant amount of
their revenue from international operations. Meanwhile, Germany-based Deutsche Post AG delivers mail between
more than 40.0 million households globally and operates in the United States through its DHL unit. Similarly,
Switzerland-based Kuehne + Nagel is one of the world's leading freight forwarders and logistics operators with over
1,000 offices in more than 100 countries, including the United States. As the world economy continues to grow,
international shipping, and therefore industry globalization, is expected to increase with it.
30 IBISWorld.com
Major Companies
Market Share Overview
Related Companies
Competitors Company Type Employee Segment Revenue ($m) Market Share (%) Profit ($m)
C.H. Robinson Worldwide, Inc. All Star 500+ Employees 13,377.8 13.54 462.5
Flexport Inc. Disruptor 500+ Employees 492.1 0.5 27.6
Xpo Logistics, Inc. Laggard 500+ Employees 333.0 0.34 23.6
31 IBISWorld.com
Companies with 5.0% industry market share are displayed in the PDF version of this report. You can view insights for all companies associated
with this industry on my.ibisworld.com
C.H. Robinson Worldwide, Inc.

Company Overview
Brands & Trading FreightQuote Freightview Robinson Fresh TMC
Names
Description C.H. Robinson Worldwide, Inc. is a public company headquartered in Minnesota with an estimated 16,900
employees. In the US, the company has a notable market share in at least two industries: Freight Forwarding
Brokerages & Agencies and Third-Party Logistics. Their largest market share is in the Freight Forwarding Brokerages
& Agencies industry, where they account for an estimated 13.5% of total industry revenue and are considered an All
Star because they display stronger market share, profit and revenue growth compared to their peers.
COMPANY TYPE Public Company

TOTAL COMPANY $13.4bn
REVENUE
EMPLOYEES 16,900
Other Industries Third-Party Logistics

Stevedoring & Marine Cargo Handling in the US
Analyst Insights CH Robinson expands Retail Consolidation Platform with new Acquisition from Roadrunner Transportation
In March 2020, CH Robinson Worldwide Inc. (CH Robinson) announced the closing of its acquisition of Prime
Distribution Services (Prime), a leading operator in retail consolidation services in the US. The company acquired
Prime from RoadRunner Transportation for $222.7 million in cash. This acquisition expands CH Robinson's retail
consolidation and warehouse services business in North America. Prime was integrated into the CH Robinsons
Surface Transportation division and helped bolster company revenue in 2020.
M&A
Former CTO of Whole Foods Market Appointed as CH Robinsons New CFO

In July 2021, CH Robinson announced changes to its leadership team, naming Arun Rajan as its new Chief Product
Officer (CFO). Rajan will report directly to the CEO and will lead all global product development and innovation
across every CH Robinson platform. This appointment will be integral to the companies' short-and long-term goals
as Rajan brings over almost 30 years of experience, serving as the Chief Technology Officer of Whole Foods Market
and Zappos, helping innovate customer experience through e-commerce.
ESG M&A
New Partnership Helps CH Robinson Improve Autonomous Trucking Capabilities

In February 2022, CH Robinson announced it would be entering into a strategic partnership with Waymo Via, the
trucking segment of the autonomous driving technology company Waymo. This partnership combines Wayno’s
technology, the Waymo Driver, with CH Robinson’s logistics platforms to accelerate technological innovations. The
project uses multiple pilots to test Wayno’s trucks hauling CH Robinson consumer freight. Afterward, both
companies will use the results to shape the future development of autonomous driving technology. This project will
also aim to address the existing driver shortage issue.
Balance Sheet ESG M&A
32 IBISWorld.com
C.H. Robinson Worldwide, Inc.

Company Overview
Industry Market Market Share
Share, Revenue
and Profit 13.54% Strong -4.6%
Current Year Annual Growth
(2022) (2018–22)
Industry Revenue
$13.4bn Strong -0.1%

(2022) (2018–22)
Profit Margin
3.46% Weak -2.0%

(2022) (2018–22)
33 IBISWorld.com
Flexport Inc.
Company Overview
Brands & Trading Flexport
Names
Description Flexport Inc. is a private company with an estimated 2,373 employees. In the US, the company has a notable market
share in at least one industry: Freight Forwarding Brokerages & Agencies, where they account for an estimated 0.5%
of total industry revenue and are considered a Disruptor because they display lower to medium market share that's
rising rapidly, but weaker profits compared to some of their peers.
COMPANY TYPE Private Company

TOTAL COMPANY $492.1m
REVENUE
EMPLOYEES 2,373
Financial Flexport Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2018 344.1 N/C 19.3 N/C
2019 394 14.5 22.1 14.5
2020 371.9 -5.6 20.9 -5.4
2021 380.8 2.4 21.4 2.4
2022 492.1 29.2 27.6 29
Source: IBISWorld
Note: * Estimates
34 IBISWorld.com
Flexport Inc.
Company Overview
Industry Market Estimated Industry Market Share
Share, Revenue
and Profit 0.5% Moderate
Current Year
(2022)
Estimated Industry Revenue
$492.1m Moderate
Current Year
(2022)
Estimated Profit Margin
5.61% Moderate
Current Year
(2022)
35 IBISWorld.com
Xpo Logistics, Inc.

Company Overview
Description Xpo Logistics, Inc. is a public company headquartered in Connecticut with an estimated 42,000 employees. In the
US, the company has a notable market share in at least seven industries: Long-Distance Freight Trucking,
Refrigerated Storage, Stevedoring & Marine Cargo Handling, Tank & Refrigeration Trucking, Local Freight Trucking,
General Freight Trucking (Less Than Truckload) and Freight Forwarding Brokerages & Agencies. Their largest
market share is in the Long-Distance Freight Trucking industry, where they account for an estimated 39.5% of total
industry revenue and are considered an All Star because they display stronger market share, profit and revenue
growth compared to their peers.
COMPANY TYPE Public Company

TOTAL COMPANY $333.0m
REVENUE
EMPLOYEES 42,000
Other Industries Stevedoring & Marine Cargo Handling in the US

Local Freight Trucking in the US
Refrigerated Storage in the US
Tank & Refrigeration Trucking in the US
General Freight Trucking (Less Than Truckload)
Long-Distance Freight Trucking in the US
Financial Xpo Logistics, Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2017 438 3.5 52.7 3.5
2018 462 5.5 56.6 7.4
2019 496 7.4 63.1 11.5
2020 344 -30.6 33.4 -47.1
2021 343.5 -0.1 28.4 -15
2022 333 -3.1 23.6 -16.9
Source: IBISWorld
Note: * Estimates
36 IBISWorld.com
Xpo Logistics, Inc.

Company Overview
Industry Market Market Share
Share, Revenue
and Profit 0.34% Weak -0.3%
(2022) (2018–22)
Industry Revenue
$333.0m Weak -7.9%

(2022) (2018–22)
Profit Margin
7.08% Strong -5.2%

(2022) (2018–22)
37 IBISWorld.com
Operating Conditions
Capital The level of capital intensity is Low

Intensity
The industry displays a low level of capital intensity. Wages
account for 23.9% of total industry revenue in 2022, while
depreciation costs amount to just 0.6% of revenue.
Therefore, on average, industry operators invest only $0.03
in capital equipment for every $1.00 spent on labor in 2022.
Most establishments do not operate their own
transportation operations, so a large portion of costs is
attributed to the payment of freight carriers. Capital
investment in equipment and infrastructure is relatively low
for most operators as a result. However, the large
multinational operators deliver integrated logistics services
that include transportation and warehousing, which require
higher levels of capital expenditure.
In contrast, small- to medium-sized operations are more

labor intensive with manual sorting and packing systems in
place. Larger operators also remain relatively labor
intensive, with skilled labor required for freight forwarding
and customs brokerage services. Capital intensity has
increased over the past five years as industry operators
invested in new software and tracking systems, as well as
freight handling equipment such as automated guided
vehicles.
38 IBISWorld.com
Technology & Potential Disruptive Innovation: Factors Driving Threat of Change

Systems
Level Factor Disruptive Description

Effect
Very Low Rate of Very A ranked measure for the number of patents
Innovation Unlikely assigned to an industry. A faster rate of new
patent additions to the industry increases the
likelihood of a disruptive innovation occurring.
High Innovation Likely A measure for the mix of patent classes

Concentration assigned to the industry. A greater
concentration of patents in one area increases
the likelihood of technological disruption of
incumbent operators.
High Ease of Entry Likely A qualitative measure of barriers to entry. Fewer

barriers to entry increases the likelihood that
new entrants can disrupt incumbents by putting
new technologies to use.
Low Rate of Entry Unlikely Annualized growth in the number of enterprises

in the industry, ranked against all other
industries. A greater intensity of companies
entering an industry increases the pool of
potential disruptors.
Low Market Unlikely A ranked measure of the largest core market for
Concentration the industry. Concentrated core markets
present a low-end market or new market entry
point for disruptive technologies to capture
market share.
The rate of new patent technologies entering the industry is low, which limits the potential for innovations. A low rate does
not mean that innovations cannot occur, just that the likelihood of some innovation materializing as a threat is lower.
However, the concentration of technologies is high in this industry. This suggests that industry operators have exposure to
potentially unforeseen areas of innovation.
The technological factors supporting the disruptive innovation potential are connected to an industry structure that is
accommodative to new entrants. The relative ease of entry into the industry magnifies the threat of disruption regardless of
other factors as one-off occurrences are more likely to succeed. However, the current rate of new entrants is low,
suggesting that there is a limited number of new companies that are potential innovators within the industry.
Major market segments for industry operators are relatively diversified. The spread of market segments suggests that there
are limited entry points other than those already served my incumbent operators.
Current improvements in systems and technologies being implemented by the

Freight Forwarding Brokerages and Agencies industry are focused on
increasing efficiency, decreasing transport costs and improving customer
service.
However, no new developments are expected to revolutionize freight forwarding and customs brokering. The industry's
services are well-known and wholeheartedly accepted by its major markets, which makes disruption difficult. Nonetheless,
several potentially disruptive forces are being developed by software companies in similar markets. For example, the
broader applications of ride-sharing technologies, which have already shaken up the taxi and limousine industry, have the
potential to reshape this industry as well, by automating the pairing process between carriers and shippers.
The level of technology change is Medium
Although new and advancing technology has improved its efficiency and
productivity, this industry has not been completely transformed by new
innovations as is the case for others.
39 IBISWorld.com
As a result, the Freight Forwarding Brokerages and Agencies industry has a moderate level of technological change.
Technology still plays a role and it is important for operators in this industry to continue to invest in business-to-business e-
commerce technology, customer relationship management tools and online ordering systems. This provides a more
seamless customer experience, increases transparency and provides for better organization. Many of the largest operators
have their own proprietary software for client side interaction, such as C. H. Robinson Worldwide's Navisphere.
Barcode technology is used extensively to sort small freight and parcels. The latest technology in radio-frequency
identification (RFID) is coupled with modern advances in two-dimensional barcode (light wave) technology. RFID
technology is a wireless link to uniquely identify objects or people, which enables greater efficiency and fewer human
errors. In the past, RFID has been used for basic tasks such as the evaluation of postal performance, but there have been
larger innovations in RFID technology in the industry. One such development is RFID's ability to provide easy access to
extensive information to track an object, contributing to a more efficient and accurate process by ensuring information is
passed down to all necessary parties.
RFID tags are much more versatile than bar codes, can store larger amounts of data and can be updated at any point of
travel. Additionally, RFID tags can be scanned even if the tag is on the inside of a package and the reader can scan
hundreds of tags simultaneously. This technology has advanced and become more affordable over the past five years and
it is expected to further develop and become more ubiquitous over the next five years.
Revenue The level of volatility is Medium

Volatility
IBISWorld estimates that industry revenue volatility or the average absolute

change in revenue growth, is 5.8%.
This corresponds to a medium level of revenue volatility over the five years to 2022. As a support industry, revenue is
vulnerable to the health of upstream industries, which industry operators cannot control. Revenue fluctuates with trends in
the quantity of domestic shipments, international trade and real GDP growth but tend to be more dramatic than those
observed with GDP. Changes in consumer spending, manufacturing and trade volumes also affect industry revenue. In the
beginning of the period, industry volatility was lower than it has been in recent years. However, an industry slowdown in
2016 was followed by a resurgence in 2018, contributing to higher volatility. A sharp decline in 2019 has also contributed to
the industry's heightened revenue volatility, with total revenue dropping an estimated 0.9% in 2019 before expanding 10.9%
in 2021.
Regulation & The level of regulation is Medium and the trend is Steady
Policy
The National Customs Brokers & Freight Forwarders Association of America
Inc. provides some self-regulation by providing professional accredited
courses to its members.
For instance, it offers the Certified Ocean Forwarders program that grants the distinction of professional ocean freight
forwarder to qualified individuals. Although companies are not required to enroll in such programs, earning accreditation
40 IBISWorld.com
could lead to enhanced industry knowledge and more customers.
Customs brokers are well regulated and licensed by the US Treasury Department. The Federal Maritime Commission
(FMC) licenses ocean freight forwarders, while the International Air Transportation Association (IATA) accredits
international air cargo agents. Surface freight forwarders are accredited by the Surface Transportation Board and provide
cargo insurance. According to Section 641 of the Tariff Act, the Treasury must individually and personally license customs
brokers, and brokerages must obtain a separate license. A copy of the insurance policy must be filed with the STB for the
protection of the forwarders' customers. To be licensed, a freight forwarder brokerage or agency must pass a
comprehensive test.
Following the September 11, 2001 terrorist attack on the United States and the subsequent war against terrorism, the
Federal Aviation Administration (FAA) introduced a new security-related directive pertaining to cargo that originates from a
foreign location destined for the United States via a passenger aircraft. Carriers must review all documentation submitted
by any forwarder prior to uplifting any shipment. This includes, but is not limited to, the waybill, manifest and commercial
invoice. The FAA also requires carriers to contact each shipper directly to verify the contents of the shipment. If the shipper
cannot be identified or contacted by the airline, the shipment will not be accepted for carriage.
Either the FMC or the Interstate Commerce Commission must license truck or rail forwarding for all companies involved in
ocean transport. Since deregulation of the US air transportation industry, airfreight forwarders have not been subject to
formal licensing requirements; however, the IATA endorses most air cargo agents involved with international forwarding.
COVID-19 HEALTH AND SAFETY REGULATIONS
In response to CDC guidance, various levels of regulation have been

implemented in the United States to discourage public gathering, large events
or crowded work environments, due to the COVID-19 (coronavirus) pandemic.
Those regulations have varied from state to state, with little federal regulation implemented. Most states have implemented
various, “shelter-in place” orders this year and last, in line with CDC guidance, while placing limitations on the ability of
businesses to operate industry facilities at full capacity. Although each state is at different points in the re-opening process
as vaccination efforts are ramped up, operators continue to encounter regulatory issues when re-introducing workers to
their businesses. Altogether, industry operations have generally been classified as, “essential” throughout the pandemic,
while the nature of industry operations makes social distancing easier to implement than most. This means that most
industry establishments have remained operational, although operators have implemented measures to ensure employee
safety. Though some of these measures have reduced total capacity, the ability to remain open and operational has
benefited the industry throughout the pandemic. As the economy reopens following 2020, many health and safety
restrictions have been relaxed, namely the discontinuation of social distancing and capacity requirements.
Industry The level of industry assistance is Low and the trend is Steady
Assistance
This industry is not directly affected by tariffs; however, customs brokers need
to understand the prevailing tariff schedules because many of their clients do
encounter tariffs.
Any changes in tariffs could affect sales; for example (and hypothetically speaking), an industry company focused on freight
forwarding between the US and Canada could be affected by a change in trade agreements between the countries.
Operators can learn more about tariffs through training services offered by the National Customs Brokers and Freight
Forwarders Association of America.
Trade facilitation programs conducted by the Office of the United States Trade Representative indirectly assist international
trade between the United States and the rest of the world. Programs include free trade agreements, Bilateral Market
Access Agreements and the Generalized Systems of Preferences (GSP). The GSP is a program designed to promote
economic growth in the developing world and provide preferential duty-free entry for about 5,000.0 products from nearly
150 designated beneficiary countries and territories.
COVID-19 (coronavirus) Assistance
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020 by the Trump
administration, provided more than $2.2 trillion in economic assistance for US businesses and consumers. Included in the
act were payroll protection loans, which have enabled industry operators to sustain their payroll and keep employees in
their jobs. This helped industry operators significantly in their efforts to compensate for revenue declines in 2020. Little aid
was provided for the rest of the year, pressuring operators to reduce payroll where necessary, however further coronavirus
aid has been passed in 2021. The new Biden administration has passed a substantial economic relief bill worth $1.9 trillion
to combat the effects of the pandemic. “The American Rescue Plan” includes assistance for US consumers and families,
small businesses, schools and healthcare programs such as vaccination efforts. Although most of the bill may not directly
be of benefit to this industry, rapid vaccination efforts and re-opening of the United States economy is expected to assist
41 IBISWorld.com
the industry's recovery from the coronavirus pandemic.
42 IBISWorld.com
Key Statistics
Industry Data
Freight
Year ($m) ($m) (Units) (Units) (Units) (Units) (Units) ($m) ($m) (Index)
2013 61,513 19,855 74,747 69,330 286,431 N/A N/A 15,487 N/A 11,212
2014 66,001 20,406 82,030 76,620 300,332 N/A N/A 16,314 N/A 11,515
2015 72,675 21,923 93,232 87,242 326,506 N/A N/A 17,635 N/A 11,893
2016 75,072 22,013 99,577 93,532 344,950 N/A N/A 17,884 N/A 12,188
2017 76,691 22,461 100,364 94,073 344,161 N/A N/A 17,937 N/A 12,484
2018 82,026 24,277 87,553 81,497 338,258 N/A N/A 19,274 N/A 12,845
2019 81,255 25,564 87,867 81,617 362,291 N/A N/A 20,560 N/A 13,126
2020 83,535 26,466 88,248 82,187 372,456 N/A N/A 20,415 N/A 12,630
2021 92,638 27,277 93,534 86,848 404,164 N/A N/A 22,250 N/A 13,629
2022 98,786 28,523 97,241 90,130 427,022 N/A N/A 23,552 N/A 14,043
2023 102,452 29,881 99,149 91,782 441,596 N/A N/A 24,370 N/A 14,356
2024 105,949 31,069 100,565 92,953 455,126 N/A N/A 25,134 N/A 14,645
2025 109,400 32,230 101,994 94,142 469,064 N/A N/A 25,913 N/A 14,909
2026 112,946 33,460 104,676 96,568 485,157 N/A N/A 26,793 N/A 15,182
2027 116,322 34,703 107,527 99,171 500,653 N/A N/A 27,638 N/A 15,457
Annual Change
Freight
Year (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2013 -3.40 -3.31 1.86 2.63 -3.19 N/A N/A -5.17 N/A 1.48
2014 7.29 2.77 9.74 10.5 4.85 N/A N/A 5.33 N/A 2.70
2015 10.1 7.43 13.7 13.9 8.71 N/A N/A 8.10 N/A 3.27
2016 3.29 0.41 6.80 7.20 5.64 N/A N/A 1.41 N/A 2.47
2017 2.15 2.03 0.79 0.57 -0.23 N/A N/A 0.29 N/A 2.42
2018 6.95 8.08 -12.8 -13.4 -1.72 N/A N/A 7.45 N/A 2.89
2019 -0.95 5.29 0.35 0.14 7.10 N/A N/A 6.67 N/A 2.18
2020 2.80 3.52 0.43 0.69 2.80 N/A N/A -0.71 N/A -3.79
2021 10.9 3.06 5.98 5.67 8.51 N/A N/A 8.99 N/A 7.91
2022 6.63 4.56 3.96 3.77 5.65 N/A N/A 5.85 N/A 3.03
2023 3.71 4.76 1.96 1.83 3.41 N/A N/A 3.47 N/A 2.22
2024 3.41 3.97 1.42 1.27 3.06 N/A N/A 3.13 N/A 2.01
2025 3.25 3.73 1.42 1.27 3.06 N/A N/A 3.10 N/A 1.80
2026 3.24 3.81 2.62 2.57 3.43 N/A N/A 3.39 N/A 1.82
2027 2.98 3.71 2.72 2.69 3.19 N/A N/A 3.15 N/A 1.81
Key Ratios
Imports/ Exports/ Revenue per Wages/ Employees per
IVA/Revenue Demand Revenue Employee Revenue estab.
Year (%) (%) (%) ($'000) (%) (Units) Average Wage ($)
2013 32.3 N/A N/A 215 25.2 3.83 54,070
2014 30.9 N/A N/A 220 24.7 3.66 54,319
2015 30.2 N/A N/A 223 24.3 3.50 54,012
2016 29.3 N/A N/A 218 23.8 3.46 51,846
2017 29.3 N/A N/A 223 23.4 3.43 52,117
2018 29.6 N/A N/A 243 23.5 3.86 56,979
2019 31.5 N/A N/A 224 25.3 4.12 56,749
2020 31.7 N/A N/A 224 24.4 4.22 54,812
2021 29.4 N/A N/A 229 24.0 4.32 55,053
2022 28.9 N/A N/A 231 23.8 4.39 55,155
2023 29.2 N/A N/A 232 23.8 4.45 55,187
2024 29.3 N/A N/A 233 23.7 4.53 55,224
2025 29.5 N/A N/A 233 23.7 4.60 55,245
2026 29.6 N/A N/A 233 23.7 4.63 55,225
2027 29.8 N/A N/A 232 23.8 4.66 55,203
Figures are inflation adjusted to 2022
43 IBISWorld.com
Industry Financial Statement

Historical Average
Industry Multiples 2017 2018 2019 2020 3-Year 5-Year 10-Year

EBIT/Revenue 9.6 2.0 1.8 2.2 2.0 5.4 8.6
EBITDA/Revenue 14.3 4.3 5.2 6.1 5.2 9.2 13.2
Leverage Ratio 7.0 23.3 19.2 16.4 19.6 14.4 10.1
Industry Tax Structure 2017 2018 2019 2020 3-Year 5-Year 10-Year
Taxes Paid/Revenue 0.7 0.0 0.0 0.0 0.0 0.4 0.9
Income Statement 2017 2018 2019 2020 3-Year 5-Year 10-Year

Total Revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Business receipts 96.5 94.0 92.3 91.2 92.5 94.0 94.5
Cost of goods 87.4 81.9 83.0 82.2 82.4 83.6 85.7
Gross Profit 12.6 18.1 17.0 17.8 17.6 16.4 14.3
Expenses
Salaries and wages 17.9 7.6 6.3 5.0 6.3 11.1 13.7
Advertising 0.3 0.0 0.0 0.0 0.0 0.1 0.2
Depreciation 2.5 2.2 2.9 3.1 2.7 2.6 3.1
Depletion 1.9 0.4 0.6 0.8 0.6 1.1 1.4
Amortization 0.2 0.3 0.3 0.0 0.2 0.2 0.3
Rent paid 4.1 3.8 2.7 1.8 2.8 3.4 3.9
Repairs 0.8 1.9 1.5 1.3 1.6 1.3 0.9
Bad debts 0.1 1.2 0.8 0.5 0.8 0.5 0.3
Employee benefit programs 0.4 1.8 1.7 1.5 1.7 1.2 1.2
Compensation of officers 1.1 0.5 1.1 1.4 1.0 1.0 1.3
Taxes paid 0.7 0.0 0.0 0.0 0.0 0.4 0.9
Interest Income 0.2 1.3 1.2 1.1 1.2 0.8 0.5
Other Income
Royalties 0.3 1.7 1.4 1.1 1.4 1.0 0.6
Rent Income 0.2 2.1 2.0 1.9 2.0 1.3 0.8
Net Income 6.7 1.0 0.2 0.5 0.6 3.4 5.2
Balance Sheet 2017 2018 2019 2020 3-Year 5-Year 10-Year
Assets
Cash and Equivalents 5.0 5.4 5.6 5.8 5.6 5.5 5.9
Notes and accounts receivable 11.5 11.8 12.0 12.1 12.0 11.9 12.2
Allowance for bad debts 0.1 0.3 0.3 0.3 0.3 0.2 0.2
Inventories 1.2 2.2 2.4 2.4 2.3 1.9 1.5
Other current assets 4.1 3.6 3.5 3.5 3.6 3.7 4.4
Other investments 13.3 12.1 11.7 11.4 11.8 12.0 11.0
Property, Plant and Equipment 83.2 80.8 80.4 80.2 80.4 81.4 81.7
Accumulated depreciation 34.4 36.5 36.8 37.3 36.9 35.9 35.0
Intangible assets (Amortizable) 11.2 11.7 12.7 13.6 12.7 12.1 11.1
Accumulated amortization 1.7 1.5 1.7 1.9 1.7 1.7 1.6
Other assets 4.6 6.6 6.3 6.0 6.3 6.0 5.8
Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Accounts payable 9.8 6.3 6.1 6.0 6.1 7.7 9.1
Liabilities and Net Worth

Mort, notes, and bonds under 1 yr 4.0 5.4 5.4 5.4 5.4 4.8 4.4
Other current liabilities 9.2 7.5 7.5 7.5 7.5 8.2 9.3
Loans from shareholders 1.8 2.1 2.4 2.7 2.4 2.2 2.2
Mort, notes, bonds, 1 yr or more 26.9 29.4 30.3 31.1 30.2 29.0 27.8
Other liabilities 14.0 15.4 14.4 13.6 14.5 14.9 17.1
Total liabilities 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Capital stock 3.1 4.0 4.0 4.0 4.0 3.6 3.6
Additional paid-in capital 25.5 28.3 28.9 29.4 28.9 27.4 24.9
Retained earnings, appropriated 0.0 0.1 0.1 0.1 0.1 0.1 0.0
Retained earnings-unappropriated 3.0 1.8 1.6 1.4 1.6 2.1 2.6
Cost of treasury stock 5.6 1.9 1.9 2.1 2.0 3.3 3.4
Net worth 34.3 34.1 34.0 34.0 34.0 33.4 30.3
44 IBISWorld.com
Liquidity Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Current Ratio 1.0 1.2 1.3 1.3 1.3 1.1 1.1
Quick Ratio 0.9 1.1 1.1 1.2 1.1 1.1 1.0
Sales/Receivables 8.7 8.5 8.3 8.2 8.4 8.4 8.3
Days' Receivables 42.0 43.0 43.8 44.3 43.7 43.3 44.4
Days' Inventory 4.9 9.9 10.4 10.6 10.3 8.2 6.5
Inventory Turnover 75.0 36.8 35.1 34.3 35.4 51.1 63.9
Payables Turnover 9.0 13.0 13.5 13.7 13.4 11.5 10.1
Days' Payables 40.8 28.0 27.0 26.6 27.2 33.3 38.3
Sales/Working Capital 31.9 11.7 10.8 10.3 11.0 19.2 23.8
Coverage Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Interest Coverage 433.4 209.6 115.6 126.3 150.5 282.7 319.6
Debt Service Coverage Ratio 4.8 0.0 0.5 0.8 0.4 2.2 3.4
Leverage Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Fixed Assets/Net Worth 3.8 3.9 4.0 4.0 4.0 4.0 4.4
Debt/Net Worth 2.9 2.9 2.9 2.9 2.9 3.0 3.3
Tangible Net Worth 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Operating Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Return on Net Worth, % 28.0 5.8 5.2 6.4 5.8 16.8 30.3
Return on Assets, % 9.6 2.0 1.8 2.2 2.0 5.5 8.7
Sales/Total Assets 1.0 1.0 1.0 1.0 1.0 1.0 1.0
EBITDA/Revenue 14.3 4.3 5.2 6.1 5.2 9.2 13.2
EBIT/Revenue 9.6 2.0 1.8 2.2 2.0 5.4 8.6
Cash Flow & Debt

Service Ratios (% of 2017 2018 2019 2020 3-Year 5-Year 10-Year
sales)
Cash from Trading -4.9 -4.9 51.7 -4.9 14.0 6.4 11.4
Cash after Operations -17.7 -17.7 26.4 -17.7 -3.0 -8.8 -16.7
Net Cash after Operations -18.5 -18.5 24.4 -18.5 -4.2 -9.9 -18.4
Debt Service P&I Coverage -7.4 -7.4 11.3 -7.4 -1.2 -3.7 10.5
Interest Coverage (Operating
-0.6 -0.6 1.1 -0.6 0.0 -0.2 0.5
Cash)
Source: IRS SOI Tax Stats; US Census Bureau; IBISWorld
45 IBISWorld.com
Additional Resources
Additional US Department of Transportation
Resources http://www.transportation.gov
US Census Bureau
http://www.census.gov
Airforwarders Association
http://www.airforwarders.org
The National Customs Brokers & Forwarders Association of America Inc.

http://www.ncbfaa.org
Transportation Intermediaries Association

http://www.tianet.org
Industry Jargon INTEGRATED LOGISTIC SERVICES

Provision of transportation activities from door to door through the vertical integration of the supply chain.
JUST-IN-TIME (JIT)
A strategy implemented to improve profitability by reducing inventory and purchasing the raw materials that are
needed for the immediate term only.
LESS-THAN-CONTAINER LOAD (LCL)

Shipments that do not occupy the space of a single standard cargo container.
LESS-THAN-TRUCKLOAD (LTL)
When carriers fill trucks with merchandise from several companies, as opposed to one company. Combining multiple
shipments enables carriers to be more efficient.
Glossary BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
46 IBISWorld.com
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
47 IBISWorld.com
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Freight Forwarding Brokerages - Agencies in The US Industry Report

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INDUSTRY REPORT 48851

Freight Forwarding Brokerages &

Alex Petridis | June 2022

IBISWorld.com 1-800-330-3772 info@IBISWorld.com

Executive Summary............................................................ 8 MAJOR COMPANIES...................................... 31

INDUSTRY PERFORMANCE............................9 Market Share Overview..................................................... 31

About This Industry

Major Players C.H. Robinson Worldwide, Inc.

Xpo Logistics, Inc.

Main Activities The primary activities of this industry are:

Providing marine shipping-agency services

The major products and services in this industry are:

Domestic freight transportation arrangement services

International freight forwarding and customs brokerage services

Non-vessel operating common carrier services

Management Consulting in the

RELATED INTERNATIONAL INDUSTRIES

$98.8bn 15.1% 2.4%

Annual Growth Annual Growth Annual Growth

$4.3bn Industry Structure

Annual Growth Annual Growth

2017–2022 2017–2022 NEGATIVE IMPACT

Annual Growth Annual Growth Annual Growth Key Trends

 Rising consumer spending boosted US retail sales and

 Large companies will continue to expand operations and

Products & Services Segmentation

Major Players SWOT

Low & Steady Barriers to Entry

High Revenue Growth (2017-2022)

Low Revenue Growth (2005-2022)

Key External Freight transportation services index

Total trade value

World price of crude oil

Current The Freight Forwarding Brokerages and Agencies industry is composed

COVID-19 (CORONAVIRUS) IMPACT

Industry revenue growth has been subdued significantly by a decline of

Rising consumer spending boosted US retail sales and manufacturing

INDUSTRY COMPETITION AND OTHER TRENDS

The industry is heavily fragmented due to low barriers to entry and

Historical Performance Data

COMPETITION AND OTHER TRENDS

Performance Outlook Data

Technological changes primarily focus on improving efficiencies

Products & Markets

Manufacturing in the US Local Freight Trucking in the US

Wholesale Trade in the US Ocean & Coastal Transportation in the US

Retail Trade in the US Inland Water Transportation in the US

Transportation and Warehousing in the US Transportation and Warehousing in the US

Agriculture, Forestry, Fishing and Hunting in the US Moving Services in the US

Construction in the US Long-Distance Freight Trucking in the US

2nd Tier Tank & Refrigeration Trucking in the US

Consumers in the US Rail Transportation in the US

Products & Services

Many operators offer customs brokerage services, as well as freight

DOMESTIC FREIGHT TRANSPORTATION ARRANGEMENT SERVICES AND FORWARDING

Domestic freight transportation arrangement services and forwarding are

INTERNATIONAL FREIGHT FORWARDING AND CUSTOMS BROKERAGE SERVICES

International freight forwarding and customs brokerage services account

NON-VESSEL OPERATING COMMON CARRIER SERVICES

Non-vessel operating common carriers (NVOCCs) act as carriers but do

Other freight-related services include storage and distribution services

Demand Overall freight volumes, including the transportation of consumer goods,

Manufacturers using industry services for domestic destinations account