Koch Companies - Competitors

Koch Companies Competition

Now Viewing Koch Companies's competition in: Freight Shipping Services

Recent Developments

Fewer Ships Response to Global Economic Conditions - Building a ship costs more these days, which, combined with declines in the volume of global shipments, has resulted in a steep drop in containership orders. Clarkson, a large integrated shipping services company, says that orders were off nearly 50 percent year-to-date through August 2008 compared to one year earlier. Fewer ship orders may indicate future weakness for some areas of freight shipment.

New Scanning Laws Coming Slowly - Scanning shipping containers in the interest of security will be required by 2012, and the Bush Administration is working on a new plan to implement the requirement. While the original plan was to scan all incoming cargo, US Customs and Border Protection is proposing scanning cargo only in certain high risk zones or areas. If freight shipping companies have a presence in one of these areas, the new procedures could cause shipping delays.

Hurricane Season Unkind to Freight Shippers - Freight shipments in and around the Houston, Texas, area experienced slowdowns and damage from Hurricanes Ike and Gustav, both of which hit in September 2008. The hurricanes damaged some railroad tracks, but more important, caused power loss at shipping facilities, scattered workers, and interrupted supplies. Railroad experts predicted a return to normalcy sometime in October 2008; however, many shippers have been forced to find other routes.

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.

Full Industry Overview For Freight Shipping Services

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 5.4 percent between 2008 and 2013.

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.