by Freight forwarding services involve the organization and execution of a complete transport process, including origin services, customs clearance, warehousing, cross-border haulage, and destination delivery services, on behalf of shippers. Services such as cargo handling at origin, destination delivery, preparing documentation, custom clearance and cross-border transportation are included in freight forwarding. The global freight forwarding market involves top players such as Agility and Kuehne + Nagel International AG providing end to end cargo transport solutions through a comprehensive network reach.
The global Freight Forwarding Market is estimated to be valued at US$ 248.69 Bn 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 Dynamics:
The global freight forwarding market is witnessing high growth driven by increasing cross-border trade activities. According to the United Nations Conference on Trade and Development (UNCTAD), the global trade volume is projected to grow by 4.6% in 2023. Growing international B2B and B2C e-commerce businesses are also positively impacting the freight forwarding industry. Furthermore, regional trade agreements among nations are removing cross-border trade barriers, thus supporting international cargo movement. The freight forwarding market is expected to continue growing owing to robust cross-border trade dynamics in the coming years. However, factors such as disrupted supply chains due to the COVID-19 pandemic and geopolitical issues pose challenges. To mitigate such challenges, freight forwarders are investing in digital technologies and automation to enhance supply chain visibility and operational efficiency.
SWOT Analysis
Strength: The freight forwarding market benefits from growing international trade and globalization. Increased trade agreements have made transportation of goods more seamless across borders. Freight forwarders provide valuable logistics and supply chain services to help businesses export and import cargo efficiently.
Weakness: Complex regulations around transportation of goods internationally poses challenges for freight forwarders. Ensuring compliance increases costs for freight forwarders. Additionally, fragmented nature of industry with many mid-sized players makes it difficult to achieve economies of scale.
Opportunity: Emerging markets like Africa, South America and Asia still offer significant untapped demand for freight forwarding services as trade increases in these regions. Advancements in technology like blockchain, Internet of Things and data analytics can help freight forwarders improve efficiency and offer new services.
Threats: Economic downturns threaten demand for freight forwarding industry. Additionally, certain industries shipping voluminous, low-cost goods may choose to in-house their transportation functions.
Key Takeaways:
The Global Freight Forwarding Market Size is expected to witness high growth over the forecast period owing to rapid increase in international trade volumes. Asia Pacific currently dominates the global market backed by high trade activity in countries like China. China, Japan, India, South Korea among others are driving significant demand for freight forwarding services in Asia Pacific. The region’s share in global exports and imports has been on the rise, benefitting freight forwarders. Additionally, as standardized trade infrastructure improves trade connectivity in South East Asia, intra-regional trade is surging, creating opportunities for freight transportation within the region. North America and Europe are other major freight forwarding markets, characterized by presence of leading global players and standardized regulations supporting international trade movement.
Regional Analysis
The Asia Pacific region holds the highest share in the global freight forwarding market and is expected to maintain its leading position over the forecast period. This can be attributed to factors such as rising exports and imports from major economies like China, Japan and India. Additionally, Central and South East Asian countries are witnessing rapid growth in trade volumes. Improving infrastructure and streamlined trade processes are facilitating greater connectivity between Asian countries. Shorter transportation routes within the region allow freight forwarders to provide seamless logistics services within Asia Pacific. The market sees presence of global as well as regional players well-versed with the region’s trade dynamics
Key players operating in the Freight Forwarding market are Agility, Bolloré 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:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
