by The Freight Forwarding Market is estimated to be valued at Us$ 248.69 Bn or Mn in 2023 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Freight forwarding involves the planning, coordination and execution of logistics activities to deliver cargo from the point of origin to the destination point safely. Freight forwarding services include cargo transportation by air, sea and land modes through trucks, trains, ships or airplanes. Freight forwarders coordinate customs clearance, track shipments in transit and arrange warehousing and distribution. They serve as intermediaries between shippers and carriers with dedicated freight services for various cargo types including general cargo, hazardous materials, perishable goods and others.
Market Dynamics:
The freight forwarding market is driven by the growing international trade volumes globally. International trade activity has risen significantly in the recent past, increasing the demand for freight transportation and logistics services across borders. Moreover, increasing penetration of e-commerce and growth of logistics infrastructure in developing economies is also facilitating the market growth. However, fluctuation in fuel prices and currency exchange rates pose challenges to market players by increasing operational costs.
On the other hand, implementation of blockchain technology in logistics is expected to drive market growth over the forecast period. Blockchain enables freight forwarders to monitor cargo movements efficiently through a shared digital ledger. It improves transaction visibility and prevents data tampering. Blockchain also strengthens supply chain collaboration between forwarders, carriers and shippers. Such advantages of blockchain are encouraging market players to adopt this technology to enhance service offerings.
Segment Analysis
The Freight Forwarding market consists of two major segments – Air Freight Forwarding and Sea Freight Forwarding. The Sea Freight Forwarding segment currently dominates the market, accounting for over 60% share. This is because majority of goods transported internationally are through sea routes due to large container ships being a more cost effective option for bulk transportation of freight.
PEST Analysis
Political: Regulations regarding transportation of goods across borders influence the freight forwarding industry. Favorable trade policies and agreements help boost cross border trade.
Economic: A growing economy leads to increased industrial and international trade activities benefitting freight forwarders. On the other hand, economic slowdowns can negatively impact market demand.
Social: Changes in consumer behavior and spending patterns impact demand for consumer and industrial goods, and subsequently freight forwarding services.
Technological: Adoption of technologies like track and trace systems, optimization tools, automated processing are helping freight forwarders improve efficiency and provide enhanced services to customers.
Key Takeaways
The Global Freight Forwarding Market Size was valued at US$ 248.69 Bn in 2023 and is expected to witness high growth, exhibiting a CAGR of 5.0% over the forecast period, due to increasing industrialization and expansion of international trade activities.
The Asia Pacific region currently dominates the market, accounting for over 40% share, led by countries such as China. This is because Asia Pacific serves as a major global manufacturing hub and has large maritime, road and air trade routes.
North America is expected to register fastest growth during the forecast period supported by recovering industrial production in the US and business expansion strategies adopted by major freight forwarders in the region.
Key players operating in the Freight Forwarding market are Agility, Bollor Logistics, CEVA Logistics, DB Schenker, DHL Global Forwarding, Dimerco, DSV Panalpina A/S, Expeditors International, Hellmann Worldwide Logistics, Kuehne + Nagel International AG, MGF (Manitoulin Global Forwarding), Nippon Express Co., Ltd., and UPS Supply Chain Solutions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
