MISSOURI investment bank Stifel says the freight forwarder market is consolidating around larger companies in what appears to be a solidifying trend, reports Lloyd's List.

The top 10 forwarders have 20 per cent of the market, said the St Louis investment bank.

"There is still share to be taken from smaller forwarders unable to keep up with regulations and technology, as well as carriers and shippers preferring to deal with fewer forwarders," said Stifel.

"Steamship lines continue to add mega vessels faster than capacity is removed. The recent scrapping of the P3 alliance means it should take longer to bring supply back in line with demand. 2M may help, but not immediately.

"Low rates that stay low depress forwarder profitability, It's harder to get a higher profit per TEU on a US$1,000 container move than on a $3,000 container move as the forwarder work and investment is the same," said the bank.

"Volatility is generally good for forwarders, as is significant market growth, but higher carrier rates should be the reason for the next step up in industry margins, in our view," said Stifel.

Denmark's DSV and Germany's DB Schenker forwarders are the latest to post above quarterly market average growth - three to five per cent- of ocean freight volume.

Kuehne + Nagel's second quarter volumes increased by eight per cent year on year while Panalpina reported nine per cent growth.

DB Schenker saw first half box numbers increase by 8.5 per cent year on year to 988,000 TEU while DSV posted a nine per cent year-on-year increase in the second quarter to 216,044 TEU.