Freight Companies should focus on Business to Business solutions

In my 2014 review I noticed that there are some very interesting developments happening in the freight industry.

Companies which focused on provided freight to consumers are showing poor returns whereas companies which focused in providing freight to businesses are showing good returns.

Freight brokerage companies such as CH Robinson revenues grew by 4.54% and net income increased by 16%. One of the main reasons for this was the fact that they focus on Business to Business freight solutions.

However companies that focused on B2C Ecommerce have not done particularly well, in the US UPS and FedEx have found the B2C ecommerce market very costly. UPS have cut profit forecasts by 14%

In the UK the evidence is even more stark with the freight company City Link recently entering into administration, the reason is because the more parcels it handled the more money it would continue to loose, also in the first 6 months of 2014 – The Royal Mail profits were down 21% whilst its competitor UK Mails profits were only 0.02% on revenue generated.

Going forward into 2015 Freight companies should bring in greater focus on providing Businesses with Freight solutions and Supply Chain Solutions. This strategy will be helped by the recovery that will happen in Europe and the developing ties between the trading blocs such as the EU/ US trade.

Indeed Goodada is focusing on working with Freight Companies so that they can offer and provide complete Supply Chain solutions to their business customers.