BLOG

Customs Brokerage Market – A 360° Market Overview

May 15, 2018

Customs brokerage firms make the international trade possible by facilitating the shipment and delivery of goods across international borders. The agency has to take care of shipments which occur in a sheer volume across international borders every single day. Each country has a different set of rules and regulations regarding customs, import, and export. Additionally, laws and regulations regarding customs are changing constantly, making it impossible for a normal person to do business across international borders. The customs broker facilitates this transaction as they are responsible for knowing all the rules and regulations. The broker will facilitate and streamline the shipping process for the individual or the organization.

Request Free SampleMarket growth

The customs brokerage market is on track for a steady growth of 8.5% per annum. Buyers, especially in North America and Europe, are collaborating with regional suppliers for strategic sourcing and supply chain management. Collaboration with regional suppliers has enabled buyers to reduce their TCO for customs brokerage and helped them realize cost savings between 5% and 7%. Although global firms can offer a wide range of customs brokerage services, it is their inability to offer assured savings that is swinging the market in favor of regional suppliers.

Market pricing

Although the demand for customs brokerage services is rapidly on the rise, the prices are only set to marginally increase over time. The market for such services is highly fragmented, resulting in high level of competition which is expected to keep the prices stable. The growth of the manufacturing industry has alerted service providers to offer their services for increased global trade. This will bring in added revenues to such service providers.

Pricing model

The brokers can charge their clients either an hourly rate, a fixed fee, or fee-based on services provided. However, both buyers and sellers are hesitant to deal on a fixed fee. They prefer to deal on an hourly rate basis, which bills customers on the basis of time involved for the advice and solutions on processing the shipment. It also provides the buyer with finer control over the expenses associated with customs clearance.

Cost-saving levers

Reducing the total lifecycle or ownership cost is one of the most effective cost-saving levers in this market. Reducing the TCO associated with customs clearance process by focusing on R&D to come up with technological innovations can help suppliers increase their process efficiencies, reduce overall costs, achieve increased economies of scale, and transfer these savings to buyers.

Market innovation

Suppliers for long had been working on technology to detect defects in shipment. These technologies include smart seals and trafficking sensors that alert suppliers in case if a seal of a cargo item is tampered and help to locate the shipment before it reaches a customs official. A supplier based in California is utilizing a smartphone app that connects shippers and carriers. The app allows containers from multiple shippers to be grouped at the ports before alerting different carriers on when containers are available and where they should be taken.

 

Read more about the market outlook of the customs brokerage market along with procurement best practices, pricing insights, supply market insights, and market innovations in SpendEdge’s upcoming report on the global customs brokerage market.

CTA view full report


Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars