The supply-chain crisis has driven an increase in freight rates, with implications for freight forwarders’ earnings. Understanding the relationship between rates and earnings can help freight forwarders navigate the volatile forwarding market.
Our analysis draws on recent and historical data to reveal major trends around freight forwarders’ gross margins and absolute gross profit amid carrier-rate changes.
Through three key charts, this article examines forwarders’ cost structures, the relationship between gross profit margins and freight-rate changes, implications for forwarders’ current earnings, and the potential outlook for future earnings.
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