July 21, 2024
Freight Forwarding Market

Global Freight Forwarding Market Projected To Boost The Growth

Freight forwarding involves the efficient arrangement of transport and warehousing of goods from point of origin to destination. Freight forwarders offer various customized services such as arranging transportation via multiple modes such as sea, rail, road and air freight; cargo handling; customs clearance; warehousing and distribution. They help customers minimize transportation costs and risks through consolidated shipment, track shipments in real time and handle complex documentation and compliance requirements related to international trade. The freight forwarding industry is benefiting from increasing global trade flows and growing demand for integrated supply chain solutions.

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 key trends:

One of the key trends in the freight forwarding market is the growing adoption of digitization and automation. Freight forwarders are increasingly leveraging technologies such as blockchain, artificial intelligence, IoT and big data analytics to streamline their operations and provide better services to customers. This is enabling real-time cargo tracking, automated documentation, predictive demand forecasting and reduced costs. Another major trend is the rising demand for value-added services. Customers expect freight forwarders to offer services beyond basic transportation and warehousing. These include inventory management, packaging optimization, after-sales services and supply chain consultancy. To cater to this demand, logistics companies are focusing on cross-border expertise and integrating their service offerings.

Porter’s Analysis

Threat of new entrants: New entrants in the freight forwarding market face high initial costs of setting up logistics infrastructure and establishing networks. It is difficult for new players to attain economies of scale.
Bargaining power of buyers: Individual buyers constitutes a small portion of the overall freight forwarding market. However, large corporate buyers possess significant bargaining power due to the volumes they contribute.
Bargaining power of suppliers: Service providers like airlines, ocean carriers and trucking companies hold strong negotiation power over freight forwarders as they control assets and infrastructure.
Threat of new substitutes: No significant substitute exists for freight forwarding services as companies require consolidated logistics support for transportation across borders.
Competitive rivalry: The global freight forwarding market is a highly fragmented space with many local and regional players competing. Pricing wars between operators have intensified rivalry over the years.

Key Takeaways

The Global Freight Forwarding Market Size is expected to witness high growth, exhibiting CAGR of 5.0% over the forecast period, due to increasing globalization leading to greater trade volumes.

Regional analysis: The Asia Pacific region is expected to dominate the freight forwarding market owing to large manufacturing bases and growing intra-regional trade. Countries like China and India contribute significantly to freight forwarding demand. North America and Europe also hold substantial market shares and are expected to grow at 4-5% during the forecast period.

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. These companies focus on expanding their geographical reach and service offerings through acquisitions and strategic partnerships.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile i