Customs and freight logistics businesses unite as demand grows strong

Customs brokers and freight forwarders have traditionally been two links in the import/export chain.

The former is responsible for attaining government clearance on goods shipped while the latter manages the logistics. Due to world events, the Australian Federal Government has been ramping up regulations on import management and implemented tighter security measures.

At the same time, the increase in trade agreements between Australia and other countries has encouraged commerce, creating a greater demand for customs and freight services. As such, the industry is under great demand in more ways than one.

Industry Response

The customs and freight industries have responded to the changing environment. Many customs brokers and freight forwarders have merged because it’s good business sense.

Administrative and logistic errors, which are costly to both the industry and their customers, are minimised when there is only one port of call. This is especially vital in light of increased government regulations.

More importantly, the increased demand for customs, freight and associated logistics services, such as contract warehousing, has encouraged operators to provide a hassle-free, end-to-end solution to their clients. The merging of customs broking and freight forwarding has been a natural response to the changes and growth of international trade.

The level of buyer interest in the customs broker and freight forwarder industry is strong and likely to continue. Due to the current environment, many believe purchasing a portfolio of clients is the most effective way to grow a business in this industry.

We have advised on the sale of customs and freight related businesses achieving great results for the purchaser and provide the seller with a favourable price and terms for on-going employment for staff.

Jamieson has been involved in valuations, sales, mergers and acquisitions of customs broking businesses for over 20 years. Please contact us should you have an interest in buying or selling a customs broking business.