Integrated Logistics sector

sector provides third-party transport of non-bulk freight for clients. Sector operators combine several functions in the Transport, Postal and Warehousing division to offer customers a seamless service, including freight processing, transport, handling and storage. Larger integrated operators have developed a comparative advantage in logistics through their economies of scale, helping them to win additional contracts. While changing demand conditions and technological improvements have supported the sector over the period, the deterioration in demand conditions associated with the COVID-19 pandemic has contributed to an overall decline in sector revenue.

The Integrated Logistics sector provides a range of services related to the transportation of goods along supply chains to reach final markets. Innovation in the sector influences competition, particularly regarding third-party services that compete with in-house logistics activities. Over the next five years, skills shortages in key logistics functions will likely challenge the sector as operators require increasingly skilled staff. The projected recovery of the Australian economy following the negative effects of the COVID-19 pandemic is anticipated to support the recovery of sector revenue. However, the projected increase in world oil prices and domestic fuel prices will likely continue placing downward pressure on sector profitability.