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Freight Shipping ServicesProduct Type: Market Research ReportPublished by: First Research, Inc. Published: February 2008 Product Code: R3470-1105 Description About 16,000 companies in the US provide freight shipping services, with combined annual revenue of $18 billion. Despite the rapid growth of giants like CH Robinson Worldwide, BAX Global, and EGL, the industry remains highly fragmented and local. The typical freight shipper operates a single office with less than $1 million in annual revenue and six employees. COMPETITIVE LANDSCAPE Industry revenues are strongly affected by national and international business activity. The profitability of individual companies depends on efficient operations and good marketing. Small companies can compete effectively with large ones because there are few economies of scale in local booking offices. Revenues per employee are about $120,000 at both large and small firms. PRODUCTS, OPERATIONS & TECHNOLOGY Companies that provide freight shipping services are either fully integrated carriers, like Menlo Worldwide and BAX Global, that own truck, rail, air or ocean assets, or assetless freight forwarders, like Robinson and EGL, that arrange shipments and local pickup through independent carriers. Freight forwarders often provide greater flexibility and lower price than integrated carriers, which specialize in carrying large volumes on fixed schedules over predetermined routes. Integrated companies make money mainly by carrying goods; freight forwarders make money on the spread between the rates they charge customers and the rates they pay carriers. Both types of shippers also offer other services they charge fees for, such as logistics, supply-chain consulting, and customs brokerage. Expeditors International gets about 60 percent ... Table of Contents
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