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Australia Freight Forwarding - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 150 Pages
  • February 2024
  • Region: Australia
  • Mordor Intelligence
  • ID: 5938290
The Australia Freight Forwarding Market size is estimated at USD 13.81 billion in 2024, and is expected to reach USD 18.65 billion by 2029, growing at a CAGR of 6.23% during the forecast period (2024-2029).

Key Highlights

  • Over the last four decades, Australia's domestic freight challenge continuously grew, with road and rail freight increasingly dominating domestic freight activity. Iron ore rail transport in the Pilbara area generated a massive surge in rail freight tasks. An efficient, sustainable, and cost-effective freight and logistics business supported by collaboration with all levels of government supports Australia's rising economy and ambitions for a high quality of life.
  • The COVID-19 epidemic resulted in an exponential spike in parcel movements, particularly e-commerce deliveries, placing Australia Post's pre-existing delivery model under duress. Similarly, the freight and logistics business saw comparable effects across the country, notably during the pandemic's need for home delivery of food and medical supplies. Road freight is the most common means of transport for urban, inter-urban, and regional freight, and it is an essential component of the supply chain for the majority of imports in Australia.
  • A rising population places an increasing strain on the distribution network, even if merely to fuel basic consumption. Daily supply chain food activities, for example, grow in bulk as demand grows. It needs more room to accommodate the rising quantities. Melbourne is on course to become Australia's largest city by 2029. The Australian government is key to the long-term planning, development, and management of transportation networks that serve Australia's expanding freight needs. It is dedicated to producing a national freight and supply chain plan to boost Australia's freight and supply chains' productivity and efficiency.

Australia Freight Forwarding Market Trends

Bulk Freight driving the market

The volume of freight transferred by railway throughout Australia decreased, with just 2% of products currently transported by rail between Sydney and Melbourne. It is due to concerns about pollution and safety problems generated by the increasing number of vehicles on highways. Rail remains a popular form of transportation for mining and resource firms throughout the country. According to figures from the Bureau of Infrastructure and Transport Research Economics (Bitre) for 2021-22, strong private investment in tracks resulted in 72% of bulk goods. The goods included iron ore, coal, and other commodities, being transported domestically by rail, compared to 12% transported by road.

However, trucking gained significant traction in the transport of non-bulk freight. It is a large category that includes meals, beverages, vegetables, mail, manufactured goods, and most other commodities. Trains carried 16.7% of domestic non-bulk freight by 2021-22, while vehicles carried 79.8%. Coastal shipping also declined dramatically, from over 13% in the mid-1970s to less than 4% now.

Given the reduced cost of freight in contrast to other sources of high-CV coal, Japan, South Korea, and Taiwan are important customers of high-CV Australian coal. While imports fell year on year from January to September 2020 due to the pandemic, shipments of Australian coal to those nations increased significantly at the same time in 2021. Japan bought 82.3 million metric tons of coal from January to September 2021, with Australia accounting for 59.5 million metric tons.

Increasing Investments On Infrastructure

Australia includes a robust pipeline of initiatives financed by the public sector. There are substantial road, rail, airport, energy, and social infrastructure projects planned in our main cities and along critical freight and transit corridors in Northern Australia. The government budget for 2022-23 pledges AUD 17.9 billion (USD 12.13 billion) over ten years to significant infrastructure projects around the country, including billions for road and rail projects. Between 2021 and 2025, total investment in major public infrastructure is estimated to surpass AUD 218 billion (USD 147.67 billion). The AUD 16.8 billion (USD 11.38 billion) WestConnex 33 km traffic freeway in NSW, scheduled to open in 2023, is one of Australia's greatest infrastructure projects. It also includes Sydney Metro, the country's largest public transportation project and the nation's first fully automated metro train system.

The Australian government's collaboration with the governments of New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory is expected to help different land transport infrastructure projects. The Australian government will spend AUD 110 billion (USD 74.51 billion) on land transport infrastructure across Australia over the next ten years, from 2021 to 2022, via its rolling infrastructure pipeline, with the majority of the funds coming from the infrastructure investment program. This program is part of the government's bigger goal to decrease traffic congestion, enhance regional connectivity, solve the national freight problem, get Australians home quicker and in safer conditions, and create a stronger and more resilient Australia.

Australia Freight Forwarding Industry Overview

The Australia Freight Forwarding Market is competitive and fragmented, with the presence of many international players. Although the market is quite fragmented, the efforts of established firms to attain a considerable share of the target market are estimated to build healthy competition among industry players. The country's major corporations implemented a variety of modern technologies, including warehousing management systems, automation, drone delivery, and transportation management systems. They enabled better planning and tracking facilities, resulting in increased productivity and value proposition.

Some of the major players are CTS Australia, Yusen Logistics Australia, Platinum Freight Management, Think Global Logistics, and UC Logistics Australia.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Bulk Freight driving the market
4.2.2 Increasing Investments On Infrastructure
4.3 Market Restraints
4.3.1 Stringent emission regulations
4.3.2 Nearshoring manufacturing operations
4.4 Market Oppurtunities
4.4.1 Rise in intermodal freight transportation and technological development
4.4.2 Growing cross-border trade activities
4.5 Government Regulations and Initiatives
4.6 Technological Trends
4.7 Insights into Supply Chain/Value Chain Analysis
4.8 Industry Attractiveness - Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Buyers/Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitute Products
4.8.5 Intensity of Competitive Rivalry
4.9 Impact of Covid-19 on the market
5.1 By Mode Of Transport
5.1.1 Air Freight Forwarding
5.1.2 Ocean Freight Forwarding
5.1.3 Road Freight Forwarding
5.1.4 Rail Freight Forwarding
5.2 By Customer Type
5.2.1 B2C
5.2.2 B2B
5.3 By Application
5.3.1 Industrial And Manufacturing
5.3.2 Retail
5.3.3 Healthcare
5.3.4 Oil And Gas
5.3.5 Food And Beverage
5.3.6 Other Application
6.1 Market Concentration Overview
6.2 Company profiles
6.2.1 CTS Australia
6.2.2 Yusen Logistics (Australia) Pty. Ltd.
6.2.3 Platinum Freight Management
6.2.4 UC Logistics Australia
6.2.5 Think Global Logistics
6.2.6 Mainfreight Limited
6.2.7 Deutsche Post DHL Group
6.2.8 CEVA Logistics
6.2.9 SCT Logistics
6.2.10 Kings Transport*