Logistics is ranked seventh in the IBISWorld report of top-10 sectors feeling the pinch of the financial crisis
Logistics is ranked seventh in the IBISWorld report of top-10 sectors feeling the pinch of the financial crisis.
According to IBISWorld, logistics is facing further obstacles this year following a particularly tough 2008.
Freight volumes are falling sharply, resulting in an overly competitive market and tight margins.
Trucking industry revenue is expected to fall a further 3.4 percent, while profit remains at around 0.2 percent.
In addition, the report says approximately 5,500 jobs will be slashed.
However, clamping down on trucking costs is listed as a top suggestion to protect margins.
Operators should also aim to lower average speeds, follow less-congested alternate routes and reduce braking and acceleration.
Taking advantage of capacity will ensure that costs per unit are reduced, while cutting back on the number of trucks in operation will also reduce excess capacity.
IBISWorld says Toll Holdings and Linfox have both noted numerous acquisition opportunities in the market, and more companies are likely to pursue these.