III. Industry Analysis
The Freight Brokerage industry has increased over the past five years, as rising economic activity led to bolstered consumer spending. E-commerce sales and industrial output levels have each increased, boosting domestic freight volumes as a result and generating demand for freight brokerage services from manufacturers and online retailers. Further, as total US trade volumes increased, demand for international freight services that require brokerage has risen.
The popularity of next-day delivery services and other online shopping services has also positively affected the industry. 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.
Over the next five years, industry revenue is anticipated to grow as well. Economic growth, increased consumer spending and e-commerce sales, are expected to cause freight volumes to rise. Furthermore, total trade value is forecast to continue to grow in the United States, which will generate revenue from importers and exporters.