A Study on Financial Analysis of Client and Route- Wise Profitability in Freight Forwarding Operations

In this academic research, we were able to research the contribution of different factors towards profitability or loss in freight forwarders through the analysis of the clients as well as the freight sent over different routes.Moreover, we were also able to identify different components of cost structure in accordance with the type of goods transported in different industries, i.e., pharmaceuticals, automobiles, engineering, fast-moving consumer goods, etc.In this context, different tools of analysis were used in the research, i.e., ratio analysis, client contribution analysis, route cost analysis, trend analysis, business analysis, etc.Moreover, different cost factors were also identified, which contributed towards the profitability or loss in freight forwarding operations, leading to success or failure in these operations.According to the analysis, the pharmaceutical industry contributed towards the highest profitability, while the cost of the carrier was the largest component of the cost incurred in transporting the goods in these industries.Moreover, recommendations were also made regarding the profitability as well as the improvement in the logistics management of freight forwarders.