PUBLISHER: The Business Research Company | PRODUCT CODE: 1436305
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436305
Freight forwarding involves the planning, coordination, and facilitation of the shipment flow for the international movement of goods across borders. Freight forwarders manage tasks such as negotiating freight rates, handling customs documentation, tracking containers, and consolidating freight shipments.
The main services in freight forwarding encompass transportation and warehousing, packaging and documentation, insurance, and value-added services. Warehousing involves the storage of goods for future sale, and its connection with freight forwarding is integral as warehouses enhance the reliability of freight forwarding companies. Various logistics models, including first-party logistics, second-party logistics, and third-party logistics, operate across different modes of transport such as air, ocean, road, and rail freight forwarding. Customers in freight forwarding include B2B and B2C, and these services find applications in diverse sectors such as industrial and manufacturing, retail, healthcare, media and entertainment, military, oil and gas, food and beverages, among others.
The freight forwarding research report is one of a series of new reports from The Business Research Company that provides freight forwarding statistics, including freight forwarding industry global market size, regional shares, competitors with freight forwarding share, detailed freight forwarding segments, market trends and opportunities, and any further data you may need to thrive in the freight forwarding industry. This freight forwarding research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The freight forwarding market size has grown steadily in recent years. It will grow from $202.17 billion in 2023 to $210.93 billion in 2024 at a compound annual growth rate (CAGR) of 4.3%. The expansion observed in the historical period can be attributed to an economic boom and supply chain optimization, customer demand for value-added services, infrastructure development in transportation, the integration of ERP systems, and regulatory changes and trade agreements.
The freight forwarding market size is expected to see steady growth in the next few years. It will grow to $254 billion in 2028 at a compound annual growth rate (CAGR) of 4.8%. The anticipated growth in the forecast period can be attributed to the integration of AI and data analytics, the expansion of global trade networks, the growth of e-commerce and fulfillment services, an emphasis on sustainable logistics, and the adoption of autonomous vehicles. Major trends expected during the forecast period include strategic partnerships and alliances, the influence of global economic conditions, technological innovations in warehousing, a growing demand for value-added services, and the implementation of intermodal transportation solutions.
The significant growth in international trade volumes is playing a crucial role in driving the expansion of the freight forwarding market. International trade involves the exchange of services and products between countries, offering consumers and nations exposure to goods and services that may not be available domestically or may be more expensive. Freight forwarders play a pivotal role in organizing the intermodal transportation of goods on behalf of shippers, and the increased volume of global trade acts as a catalyst for intensified freight forwarding activities. For example, according to the World Trade Organization, the volume of global merchandise trade witnessed an 8.0% increase in 2021. Therefore, the upward trajectory in international trade volumes is expected to be a driving force behind the growth of the freight forwarding market in the foreseeable future.
The anticipated growth of the freight forwarding market in the future is expected to be propelled by the increasing expansion of the e-commerce industry. E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. In the context of the e-commerce sector, freight forwarding involves the coordination and management of the international shipment of goods, encompassing customs clearance, documentation, and transportation. This ensures efficient and timely deliveries for online retailers and their customers. For example, according to the United States Department of Commerce in May 2021, US e-commerce sales experienced a substantial increase of 39.0 percent in the first quarter of 2021 compared to the same period in 2020. Therefore, the growing expansion of the e-commerce industry stands as a driving force behind the growth of the freight forwarding market.
The adoption of artificial intelligence (AI) has emerged as a prominent trend gaining traction in the freight forwarding market. AI plays a crucial role in cost reduction, time-saving, productivity enhancement, and accuracy improvement through the automation of processes and real-time data utilization. As an example, in February 2022, Windward, a Predictive Intelligence company based in Israel, introduced its Ocean Freight Visibility solution. This new system, employing automated data collection and analysis, empowers freight forwarders to enhance productivity and scalability while delivering real-time and accurate Estimated Time of Arrival (ETA) projections, predictions of disruption risks, identification of delay causes, and location-based insights for containerized freight. Users of Windward's Ocean Freight Visibility solution can input their containers and proactively mitigate risks by staying informed about critical shipment disruptions affecting container ETAs. The solution issues real-time alerts regarding any emerging delays, allowing users to take timely and appropriate actions with their clients. Accessible through an API integration with existing transportation management systems or a web application, the solution provides daily email notifications and insights.
Prominent players in the freight forwarding market are actively developing innovative solutions, such as digital logistics platforms, to secure a competitive advantage in the industry. Digital logistics involves leveraging digital technologies and information systems to optimize and streamline various processes within the logistics and supply chain management sector. As an illustration, in October 2021, DP World, a logistics company based in the United Arab Emirates, introduced CARGOES Logistics, a digital logistics platform designed to deliver a seamless and transparent supply chain experience. This platform empowers customers to conveniently book cargo online, select from a range of multimodal logistics options, and experience efficient movement with advanced tracking capabilities. Initially linking the UAE to India, CARGOES Logistics has plans for subsequent expansion to various destinations across the Middle East, Subcontinent, Southeast Asia, the Far East, and North Africa. The platform addresses supply chain complexities by offering end-to-end visibility, predictive insights, and a comprehensive digital experience, backed by DP World's integrated logistics assets and services.
In May 2021, the Switzerland-based transport and logistics company, Kuehne+Nagel, completed the acquisition of Apex International Corporation for an undisclosed sum. This strategic move positions Apex and Kuehne+Nagel to deliver a compelling offering to customers in the fiercely competitive Asian logistics sector, with a primary focus on e-commerce fulfillment, hi-tech, and e-mobility. Apex International Corporation, a logistics firm based in China, specializes in freight forwarding.
Major companies operating in the freight forwarding market report are Savino Del Bene S.p.A., A.P. Moller-Maersk Group, CMA CGM Group, Deutsche Bahn AG, DSV Panalpina A/S, DHL Global Forwarding, C.H. Robinson Worldwide Inc., Nippon Express Co. Ltd., Expeditors International of Washington Inc., Expeditors International of Washington Inc., Sinotrans Limited, GEODIS SA, Kuehne + Nagel International AG, Kerry Logistics Network Limited, Kerry Logistics Network Limited, UPS Supply Chain Solutions Inc., CJ Logistics Corporation, DACHSER SE, Bollore Logistics, Bollore Logistics, Hellmann Worldwide Logistics GmbH & Co. KG, Agility Public Warehousing Company K.S.C.P., Yusen Logistics Inc., Kintetsu World Express Inc., CTS International Logistics Corporation, LX Holding, Yusen Logistics Co. Ltd., Dimerco Express Group, Ceva Logistics LLC, Logisteed Co. Ltd., Seko Logistics
North America was the largest region in the freight forwarding market in 2023. The regions covered in the freight forwarding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the freight forwarding market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The freight forwarding market includes revenues earned by entities by planning and coordinating of the movement of commodities across international borders. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Freight Forwarding Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on freight forwarding market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for freight forwarding ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The freight forwarding market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.