CEVA Logistics Competition
Now Viewing CEVA Logistics's competition in: Freight Shipping Services
Recent Developments
Expansions Ongoing at Gulf Terminals - Gulf of Mexico ports are undergoing major expansions, in some cases over a billion dollars worth, a sign that freight traffic is expected to increase significantly along the Gulf in coming years. Ports, including Houston and Freeport, Texas, are among those expanding, as are the ports of New Orleans and Gulfport, which have only just recovered from the damage caused by 2005's hurricanes. Among the growth drivers is ongoing work at the Panama Canal that is expected to increase traffic to US Gulf Coast ports.
Container Troubles Hamper Exports - Freight carriers are enjoying a US export boom, but some are being constrained by a shortage of containers and container ships, according to industry experts. While additional ships are being built, they can't be produced overnight, which is leaving some dry cargo unshipped. Experts say that the decreasing value of the US dollar has fueled the market for US products, particularly in developing nations, and is pushing capacity utilization rates of some ships near 100 percent.
Major Antitrust Investigation Results in Fines - Air cargo rates were artificially high from 2001-2006, when some major airlines were involved in price-fixing, according to a US District Court decision. Prosecuted under US antitrust regulations, Air France, KLM Royal Dutch Airlines, Cathay Pacific Airways, Martinair, and SAS Cargo Group were fined a total of $504 million for price-fixing cargo and surcharges. While none of the airlines impacted were US in origin, the Department of Justice plans to continue its investigation.
Competitive Landscape
Demand is driven by domestic manufacturing output and levels of international trade. The profitability of individual companies depends on efficient operations, extensive relationships in shipper and carrier networks, and industry expertise. Large companies have advantages in account relationships and access to advanced logistics technologies. Small operations can compete effectively by serving a local market, specializing in cargo transfer with specific countries, and facilitating the transport of unusual goods. The industry is somewhat labor-intensive: average annual revenue per employee is $170,000.
Freight Shipping Services Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US railroads, trucking, and water transportation services, all major indicators for freight shipping, is forecast to grow at an annual compounded rate of 4.3 percent between 2007 and 2012.
Trucking, Railroads, Water Transport Growth Stabilizes
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Distribution of goods drives demand
- Need efficient use of technology
- Risk: Slowing economy cuts volume
Industries Where CEVA Logistics Competes
- Transportation Services
- Logistics Services
- Supply Chain Management Services
- Warehousing & Distribution Services
- Freight Forwarding Services
- Logistics Services
