Abstract
Purpose – This paper examines the diversification of services and activities by freight forwarders in the UK. Following similar studies conducted in the USA, the paper analyses the trends towards service and revenue diversification that has been observed in this sector.Design/methodology/approach – The study is based on a survey of 100 UK‐based freight forwarders‐based and empirically tests the firms' respective revenue generation structures, as well as the range of services offered. The survey is complemented by semi‐structured interviews at a further four companies in order to provide additional contextual explanations of the empirical findings.Findings – The results show that diversification appears to be closely related to both company size and a diversified asset base. The motivation for diversification stems mainly from a perceived erosion of the traditional freight forwarding revenue streams, as companies are seeking higher profit margins outside their traditional core business, while addressing th...
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