PUBLISHER: The Business Research Company | PRODUCT CODE: 1619681
PUBLISHER: The Business Research Company | PRODUCT CODE: 1619681
International freight forwarding is a service offered by specialized companies or individuals that handle the logistics and transportation of goods between countries. The goal of freight forwarding is to ensure that goods are shipped efficiently and cost-effectively while managing the complexities of international trade.
The primary types of international freight forwarding services include freight transportation, warehousing and distribution, customs brokerage, freight consolidation, and value-added services. Freight transportation involves moving goods using various modes such as ocean, road, air, and rail, ensuring safe and efficient delivery to their destinations. These services cater to different customer types, including business-to-business (B2B) and business-to-consumer (B2C), and are utilized by various industries such as manufacturing, e-commerce and retail, automotive, healthcare and pharmaceuticals, oil and gas, food and beverage, consumer goods, and more.
The international freight forwarding market research report is one of a series of new reports from The Business Research Company that provides international freight forwarding market statistics, including the international freight forwarding industry global market size, regional shares, competitors with the international freight forwarding market share, detailed International freight forwarding market segments, market trends, and opportunities, and any further data you may need to thrive in the international freight forwarding industry. This international freight forwarding market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The international freight forwarding market size has grown strongly in recent years. It will grow from $104.99 billion in 2023 to $110.95 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth during the historic period can be attributed to several factors, including the surge in online shopping, economic development in emerging markets, increasing complexity of supply chains, investments in transportation infrastructure, and stricter trade regulations.
The international freight forwarding market size is expected to see strong growth in the next few years. It will grow to $139.18 billion in 2028 at a compound annual growth rate (CAGR) of 5.8%. The anticipated growth during the forecast period can be attributed to several factors, including increasing consumer expectations for quick and reliable deliveries, the need for resilient and adaptable logistics solutions, growing urban populations, partnerships between logistics providers and technology companies, supportive government policies, and economic incentives in various countries. Key trends expected to shape the future include the integration of AI, IoT, and blockchain in logistics, innovations such as digital platforms, a rising demand for automation, the adoption of eco-friendly practices and alternatives, and the implementation of advanced scanning and screening technologies.
The expansion of the e-commerce sector is anticipated to drive the growth of the international freight forwarding market. E-commerce involves the buying and selling of products and services online, allowing transactions to occur electronically without physical interaction. The industry's growth is fueled by its convenience, increased mobile commerce, enhanced logistics and delivery services, and greater internet access. International freight forwarding plays a crucial role in supporting e-commerce by handling global shipping logistics, customs clearance, cost management, tracking, and regulatory compliance to ensure efficient and timely cross-border delivery of goods. For example, the International Trade Administration reported in November 2023 that as of January 2021, consumer e-commerce accounted for 36.3% of the total retail market in the UK, with revenue projected to reach $285.60 billion by 2025. Additionally, e-commerce revenues in the UK are expected to grow at an average annual rate of 12.6% by 2025. Consequently, the rise of e-commerce is propelling the growth of the international freight forwarding market.
Key players in the international freight forwarding market are focusing on developing advanced digital workflows and analytics solutions, such as enterprise resource planning (ERP) products, to improve operational efficiency and optimize logistics processes. ERP products are integrated software systems that centralize data, offering real-time insights into operations and enhancing coordination, efficiency, and decision-making. For instance, in June 2022, DP World, a UAE-based logistics company, introduced CARGOES Runner. This innovative system aims to streamline the entire freight forwarding business, boosting efficiency and profitability per shipment. It features a user-friendly dashboard that simplifies the quotation process with quick access to and management of bids. Key benefits include digital invoicing, which reduces paperwork and increases transaction efficiency, and a digital-first approach that addresses the limitations of outdated legacy systems, significantly improving customer experience and operational performance.
In June 2022, A.P. Moller-Maersk A/S, a logistics and shipping company based in Denmark, acquired Senator International Spedition GmbH for $644 million. This acquisition is designed to strengthen Maersk's logistics capabilities and broaden its international freight forwarding services by incorporating Senator's expertise in air and ocean freight. As a result, Maersk can offer more integrated supply chain solutions and boost operational efficiency to meet the rising demand. Senator International Spedition GmbH is a logistics and freight forwarding company located in Germany.
Major companies operating in the international freight forwarding market are DHL Group, United Parcel Service of America Inc., FedEx Corporation, Kuhne + Nagel International AG, DSV Panalpina A/S, Schenker Deutschland AG, Nippon Express Co. Ltd., GEODIS SA, DACHSER Group SE & Co. KG, CJ Logistics Corporation, Hellmann Worldwide Logistics SE & Co. KG, Kintetsu World Express Inc., Yusen Logistics Co. Ltd., Sankyu Inc., Agility Public Warehousing Company, Bollore Logistics Netherlands B.V, Dimerco Express India Private Limited, Uber Freight LLC, CEVA Logistics India Private Limited, Sinotrans India Private Limited, Panalpina Welttransport Holding AG
Asia-Pacific was the largest region in the international freight forwarding market in 2023. The regions covered in the international freight forwarding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the international freight forwarding market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The international freight forwarding market includes revenues earned by entities by providing services such as transportation management, cargo insurance, documentation handling, cargo tracking, packing, and crating. 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.
International 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 international 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 international 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 international 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.