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What is the gross margin of freight forwarders?

Cassius Dela Cruz

Staff Content Writer

October 17, 2022 • 1 minute read

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The gross margin of freight forwarders is a financial metric that measures the profitability of a business, excluding certain costs such as taxes and interest expenses. It is calculated by dividing the gross profit of a business by its revenue, and it is typically expressed as a percentage.

The gross margin of a freight forwarding business can vary depending on a variety of factors, such as the types of services offered, the cost of operations, and the competitive landscape. In general, freight forwarding businesses have relatively low gross margins compared to other industries, due to the high costs of operating in the sector and the intense competition.

According to data from IBISWorld, the average gross margin for freight forwarding and customs brokerage services in the US was around 10.2% in 2021. This means that for every $100 in revenue, the average freight forwarding business earned around $10.20 in gross profit. However, it is important to note that this is just an average, and actual gross margins can vary widely depending on the specific circumstances of a given business.

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