Customs Brokerage Service Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

Rate benchmarking in customs brokerage services involves comparing the rates charged by different customs brokers for their services to establish industry standards and identify outliers. Rates in the customs brokerage industry can vary significantly based on factors such as the type of goods being imported or exported, the value of the goods, the complexity of the shipment, and the location of the ports of entry. For example, a customs broker in the United States may charge an average rate of USD 1,000-1200 per shipment, while a customs broker in China could charge around USD 500-550 per shipment. It is important to note that benchmarking rates solely based on cost may not provide a complete picture of the quality and value of the services offered. Factors such as experience, expertise, knowledge of regulations, and efficiency should also be considered to make informed decisions when selecting a customs broker. Regularly updating benchmark data can help importers and exporters make informed decisions and negotiate fair pricing contracts with customs brokers, ensuring smooth and efficient customs clearance.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, customs brokers at FedEx receive an 8%-10% higher base salary compared to the salary received by customs brokers working in companies such as DHL and DB Schenker. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the customs brokerage service over the last three years:

• In April 2023, Universal Logistics Inc. acquired Elliott Custom Brokers, a division of The Georgetown Group Limited. The acquisition gave Universal Logistics a significant presence in the cross-border trade between Canada and the United States. This helped in expanding Universal Logistics's reach into the United States.

• In April 2023 Worldwide Logistics Group (WWL), a global integrated logistics provider, has completed acquisition of P. W. Bellingall, Inc. (PWB), a major customs brokerage house located in San Francisco. This acquisition will give WWL a significant presence in the cross-border trade between the United States and Asia and also expands its reach into the San Francisco Bay Area.

• In December 2022 B.I.G. announced the acquisitions of privately-owned Xcell Logistic Services, Inc., and Xcell Logistics Corporation in Mexico. The acquisition gave B.I.G. Logistics a significant presence in the cross-border trade between the United States and Mexico. This expanded B.I.G. Logistics's reach into Latin America.