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Australia 3PL Services Industry Report: By Type: Road Freight, Ocean Freight, Air Freight; Country Overview; Value Chain Analysis; Price Analysis; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Pricing Model, Key Factors Influencing the Quotation; Key Supplier Analysis, 2022-2027

Australia 3PL Services Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices


The Australia 3PL Services market reached a value of about AUD 6.12 billion in 2021. The industry is projected to grow at a CAGR of around 2% in the forecast period of 2022-2027 to reach a value of AUD 6.89 billion by 2027.

The industry report gives a comprehensive analysis of the key segments such as price trends, drivers, restraints, the competitive landscape, and other essential market aspects. The warehouse market in Australia is propelled by the robust growth of the automotive, consumer, and construction sectors. Australia has more than 700 warehousing companies. The key demand indicator in the industry report is the highest category spender by region — New South Wales (31.8%).

Industry Definition and Segmentation

The movement and hauling of goods, by using either truck, car, rail, ocean liner, or several other forms of transportation are the services connected to the freight and logistics industry. The Australian logistics industry is growing at a greater speed, representing 8.6% of the region’s GDP. Manufacturing, retail, wholesale, construction, agriculture, and mining industries are the prominent end-users of the Australian logistics market. The freight forwarding industry is expected to hold a large share in the revenue, aided by the development of 3PL companies. The Australia 3PL Services industry report comprises segments based on its mode of service (Road Freight, Sea Freight, Rail Freight, Rail Freight, and Air Freight), load (LTL and FTL), business model (Industrial Retail, Cold Storage, IFS/ICD, and Agriculture), end-user industries (Food and Beverages, Meat and Seafood, Dairy Products, Pharmaceuticals, Bakery and Confectionary, and others) and regions (New South Wales, Sydney, Brisbane, and Perth).

Heavy Equipment and Machinery Industry is Driving the Growth of the Industry

A prominent region amongst the industry administrators, Australia, has imported a substantial measure of the high and heavy mining equipment over the last few years. Australian resources consist of large quantities of raw materials, specifically oil and gas. To develop the raw materials that would further help in increasing the demand for 3PL services in the market, the country is getting into agreements with China. For example, one of the world’s major manufacturers and providers of technically advanced construction and mining equipment, Komatsu, has inked a new multi-year contract with DHL to import more than a million kilograms of its industrial equipment, machinery, and spare parts every year to Australia and New Zealand. Moreover, several leading logistics companies of Australia are progressively aiming at developing IT and investing in technology such as the introduction of big data, open data, and digitisation, to maintain their customers in the extensively aggressive market in the country.

Micro cargo has become a vital part of the country’s freight and supply chain systems. Implementation of 3D Printing, Autonomous Vehicles, Artificial Intelligence, Alternative Fuel Vehicles, Drones among others in Australia is anticipated to increase in the future. Likewise, the Australian government is investing greatly in the improvement of the infrastructure and this curve is projected to be at the maximum between 2020-2023. Owing to the plenty of work around the transport infrastructure and rise in the disbursement by the government a USD 15 billion value of projects are estimated to be started during the period. Additionally, the increasing demand for high-quality groceries from the middle-class population is being accelerated by the growth of Omni-Channel distribution leading to the growing demand for cold chain solutions in the country.

There can be unique logistic challenges because of demographical, geographical, and political conditions. The remoteness and isolation of Australia particularly mining sites, from various other countries, poses added concerns in the global logistics. Other challenges are traffic congestion, and expenditure by companies for tolls fare.

Best Procurement Practices

Australia 3PL Services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major Australia 3PL Services utilising regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

The government of Australia performs a critical role in the long-term planning, establishment, and management of national transport networks that are benefiting the growing freight services. Likewise, it is dedicated to creating a domestic freight and supply chain strategy and planning to heighten the productivity and proficiency of Australia’s logistic services and smooth running of supply chains. The country’s developing economy and quality of life goals are supported by the effective, sustainable, and competitive freight and logistics industry that is backed by alliances with all kinds of government assistance.

Bulk Freight is Expected to Further Drive the Procurement of Australia 3(PL) Services

The robust performance of Australian export values in 2021 is primarily because of the heavy iron ore deliveries which were up by 65% year-over-year to AUD 38 billion in Q1 in the middle of high global prices and vigorous Chinese demand. The joint exports of Australia and Brazil totalled more than 20 metric tonnes in the first six months of 2021 relatively to the same period in 2020. The bulk exports market recovered greatly in 2021 as the demand for dry volume goods rebounded post-pandemic, leading to robust rates.

New avenues of prospects have opened for Australian coal after facing constraints in the Chinese market since late 2020. Also, the majority of Asian markets, like India, Japan, South Korea, and Taiwan, have seen intense coal influxes. High-CV Australian coal was comprehensively consumed by Japan, South Korea, and Taiwan owing to the comparatively lesser freight cost. Moreover, there has been an increase in the imports of Australian coal to these countries between January-September in 2021 with Japan alone importing 59.5 million metric tonnes of coal.

The major zones in the industry are New South Wales, Sydney, Brisbane, and Perth.

Key Industry Players Mentioned in the Australia 3PL Services Industry Report

  • Linfox Pty Ltd.
  • DB Schenker
  • SCT Logistics
  • CEVA Logistics
  • DHL Freight Forwarding
  • Freight Management Holdings (EFM)

Market Landscape

The largest mode of transport for urban, inter-urban, and regional freight is road freight (73.2%), and it is also an important segment of the supply chain for the majority of imports in Australia. Many of the resource industries, which are usually dependent on rail or coastal shipping for hauling of produce, heavily rely on road freight to carry crucial inputs like machinery, transport equipment, and other goods. Australia’s local freight chore has been gradually expanding, for the last forty years, with road and rail freight progressively leading domestic freight pursuit. A total volume of 800 billion metric tonnes kilometers was completed by the Australian freight task as of June 2021. Besides, rail freight holds a key share in the total freight with 453.1 billion metric tonnes kilometers, while supplies moved by road accounted for 235 billion metric tonnes kilometers.

Key Initiatives by Companies

  • In Sep 2021, the first refrigerated electric vehicle of Linfox Pty Ltd. has entered the Woolworths Group’s alliance to distribute fresh supplies to stores in urban Melbourne. The Volvo FL Electric will help move fresh produce every day from the Melbourne fresh food delivery center controlled by the Woolworths Group’s resource chain branch, Primary Connect.
  • In Nov 2021, a worldwide AMR leader, Geek+, effectively employed AMRs in CEVA Logistics' Truganina storage warehouse. Moreover, a global third-party logistics services provider, CEVA is always exploring new and innovative mechanisation resolutions to satisfy its Australian e-commerce clients.
  • In March 2020, a key global trader enabler offering endwise logistics support to cargo owners, DP World, became the global logistics collaborator of the Renault F1 team of the international motorsport’s series, delivering solutions to logistical concerns by the F1 team's supply chain administration.

1.    Executive Summary
2.    Australia 3PL Services Market Snapshot

    2.1.    3PL Services Market Outlook
    2.2.    3PL Services Industry Analysis by Type
        2.2.1.    Road Freight
        2.2.2.    Ocean Freight
        2.2.3.    Air Freight 
    2.3.    Country Overview
        2.3.1.    New South Wales
        2.3.2.    Queensland
        2.3.3.    South Australia
        2.3.4.    Others
3.    Impact of Recent Events 
4.    3PL Services Value Chain Analysis 
5.    Major Risk Factors in Sourcing
6.    3PL Services Price Analysis 
7.    Key Demand Indicator Analysis
8.    Key Price Indicator Analysis
9.    3PL Services Market Dynamics

    9.1.    Drivers & Constraints
    9.2.    Industry Events 
    9.3.    Innovations & Trends
    9.4.    SWOT Analysis
    9.5.    Porter’s Five Forces
        9.5.1.    Buyer Power
        9.5.2.    Supplier Power
        9.5.3.    Threat of New entrants
        9.5.4.    Threat of Substitutes
        9.5.5.    Industry Rivalry
10.    Industry Best Practices
    10.1.    Sourcing Strategy
    10.2.    Procurement Model
    10.3.    Contract Structure
    10.4.    Negotiation Levers
    10.5.    Pricing Model
    10.6.    Key Factors Influencing the Quotation 
11.    Key Supplier Analysis
    11.1.    Toll Group 
    11.2.    Qube Holdings Ltd
    11.3.    Linfox Australia Pty. Ltd.
    11.4.    DHL Global Forwarding
    11.5.    CEVA Logistics

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Key Questions Answered in the Report

In 2021, the global attained a value of around USD 6.12 billion.

In the forecast period of 2022-2027, the market is projected to grow at a CAGR of 2%.

Increasing investment in technology, improving infrastructure, Rising Demand for Omni-Channel Grocery and high demand by heavy equipment and machinery sector are the major drivers of the industry.

The major regions in the industry are New South Wales, Sydney, Brisbane, and Perth.

Rise in the focus of the prominent manufacturers on innovations will generate prospects of growth of the market and further shape the future.

Some of the major players in the industry are Linfox, DB Schenker, SCT Logistics, CEVA, Logistics, DHL Freight Forwarding, Panalpina among others.

Analyst Review

The Australia 3PL Services market reached a value of about AUD 6.12 billion in 2021 with a projection to grow at a CAGR of around 2% in the forecast period of 2022-2027. The Australian logistics industry is growing at a greater speed, representing 8.6% of the region’s GDP. Manufacturing, retail, wholesale, construction, agriculture, and mining industries are the prominent end-users of the Australian logistics market. The Australia 3PL Services industry report comprises segments based on its mode of service, load (LTL and FTL), business model, end-user industries, and regions. Australian resources consist of large quantities of raw materials, specifically oil and gas. To develop the raw materials that would further help in increasing the demand for 3PL services in the market, the country is getting into agreements with China. Moreover, several leading logistics companies of Australia are progressively aiming at developing IT and investing in technology such as the introduction of big data, open data, and digitisation, to maintain their customers in the extensively aggressive market in the country.

Some of the major players in the industry are Linfox, DB Schenker, SCT Logistics, CEVA, Logistics, DHL Freight Forwarding, Panalpina among others.

Procurement Resources’ detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise thus, delivering its customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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