This article was sourced from the ANZ Client Insights Road Freight Transport Industry Discussion Paper 2019. Click here to read the full report.
Key insights from this report include:
Industry revenue is trending strongly upwards, driven by increased road freight volumes and prices. This trend is forecast to continue for the next few years.
Rising costs in the industry have continued to lead to subdued margins and overall returns to capital holders.
Specialised cargo operators generate margins that are close to double that of operators who focus on cargo of a general nature.
An increase in the capex to sales ratio indicates that companies are spending more on the improvement and maintenance of their fleet and other infrastructure.