Financial specialists Korda Mentha have released a report that shows that the profitability of the trucking industry has grown over the last four years. The first part of the Road Freight Industry in Australia report, which is a two part series, examines the road freight industry sector in general. The Road Freight Industry report covers according to  http://www.kordamentha.com: 1.    Industry Overview: The Australian logistics industry has overall revenue of $94 billion and directly contributes approximately 3.1% to Australian GDP. Its indirect impact is significantly greater. Given Australia’s size and distances from major overseas markets, the efficiency of the freight transport system has a profound impact on the competitiveness of Australian manufacturers and exporters. Industry overview. 2.    Competitive Environment: The road freight industry is highly competitive. Smaller operators in particular have little influence over major costs such as fuel and labour or over the price they are able to charge their customers. They are price-takers. Even larger operators struggle to differentiate their services from those provided by a large number of owner/drivers and small operators who drive down price by engaging in price-led competition. 3.    Profitability and Returns: The competitiveness of the road freight industry is reflected in low industry returns. With average profitability of just 6.2%, the dividing line between success and failure is narrow. It is imperative that road freight operators understand and measure their costs and resist the temptation to buy new volume by underquoting. Source: http://www.kordamentha.com/docs/publications/12-08_road-freight-industry_part-1.pdf?Status=Master The report shows that intrastate transport profitability has decreased by 33% while interstate road transport has increased by 33%. The major costs for the industry are fuel and labour and it is relatively easy for owner drivers to enter the marketplace as there is a lot of opportunity for drivers that do not require a specialised license. Customers tend to be large with a deal of power, which is reflected in pricing, and it is often difficult for providers to negotiate. It is common for the outsourcing of freight services to be a part of an overall supply chain and it is suggested that the providers of freight services could focus of their point of difference to actually in effect strengthen these supply chains. The second part of the report is due to be released in January 2013.