Earlier this year, Ferrier Hodgson put together a document that highlighted many important factors that are crucial to the growth and sustainability of the Transport and Logistics sector in Australia. Having collated the data and information to provide you with insight into the Transport and Logistics Sector which Transco Cargo has been a leading player in the past three decades of operation based in Melbourne, Victoria being the Freight & Logistics Capital of the Nation, you can gather an understanding into this service sector that is instrumental in providing support and maintaining efficiencies in other sectors in the broader national economy.
According to Ferrier Hodgson (2014), the report states that the Transport and Logistics Sector in Australia brings in a 15% contribution to the Gross Domestic Product (GDP), with over 1.5 billion tonne-kilometres of goods moved daily, and employing 585,000 personnel, making it a crucial component to the nation’s broader economy. With various strategic plans in place for the growth and development of the industry, there are many opportunities that are opening up, from financiers capitalising on global economic condition rebounds, the strengthening of global ties, and as well as growing trends towards facilitating “integrated, seamless and border-less supply chains”. Backed by demographic trends, globalisation and population growth, it’s evident to market analysts that the transport and logistics sector in Australia is on the rise and growing rapidly, so much so that Freight Tasks is expected to double by 2030 and triple by 2050.
Furthermore, the study conducted by Ferrier Hodgson has also identified various opportunities and challenges in the Transport and Logistics Sector in Australia, in terms of potential markets to enter as well as what difficulties may lie with the structural changes that are taking effect in the industry.
With concern to opportunities in the Transport and Logistics sector in Australia, you can expect a rise in bulk food commodities and other specialised agricultural products transport and shipments with Australia being tipped to become Asia’s ‘Food Bowl’. Moreover, along with local deliveries growing with the impact of online retail sales increasing, as well as containerised freight movements within ports of inbound containerised freight having grown by 80% in the last decade with projections of doubling in the next decade. Air freight is also seen as a game-changer with the online shopping revolution opting for air freight over sea freight for the likes of overseas parcels for instant gratification in comparison to the types of freight, where analysts expect that air cargo freight will double in the next 2 decades.
As per the challenges of the Transport and Logistics sector in Australia, a concern to up and coming players should be brand and risk-focused customers looking towards a one-stop shop freight forwarding operators such as Transco Cargo (that that established themselves as tailor-made freight forwarding service provider) , online shopping causing a restructuring in the traditional supply chains, as well as containerised freight handling can increase the expenses of long distance road freight movements with long haul and line haul transporters being directly impacted.
Source: Ferrier Hodgson (2014)