The Denmark sea freight logistics market is projected to grow at a CAGR of 16.09% over the forecast period, increasing from US$1,119.981 million in 2021 to US$3,182.106 million by 2028.
The market is growing as the transporting of hazardous material is less expensive and safer in the sea than other types of transportation. As the sea freight system has very low carbon emissions, it is environmentally friendly and uses less fuel. It has few limitations on the kind of commodities it may transport and can move huge loads over long distances with ease. It helps to streamline the design, execution, and management of maritime freight logistics while also enhancing security. In addition, it helps a business become more profitable by preserving transparency at every stage of a shipment which increases the market share of Denmark's sea freight logistics market.
Growth drivers for Denmark sea freight logistics market
The industry is expanding due to the growing need for affordable freight transportation options. Moreover, investors in the sector are being presented with profitable growth prospects by the growing demand for marine freight forwarding brought on by the awareness of the need to reduce carbon emissions. Additionally, a favorable market picture is provided by the expanding use of marine freight forwarding as a result of the growing need for quick and safe cargo delivery. For instance, in April 2023, Maersk welcomed a historic green methanol vessel to Copenhagen. Maersk aims to have net zero greenhouse gas emissions by 2040. To make it in time, the firm plans to use green fuels for at least 25% of ocean cargo by 2030, up from a baseline of 2020.
Growing cross-border e-commerce and increasing trade
Denmark is ideally situated for continued expansion in e-commerce. The World Bank has identified the region as one of the top five nations with which to conduct business. Danish e-commerce payments and logistics are simple for foreign retailers to understand and implement when starting their local company. Moreover, the volume of trade handled by sea has begun to steadily increase. The proportion of trade that is carried out by sea is eventually rising because shipping is the most economical and ecologically friendly form of commercial transportation.
Moreover, the market is expanding as a result of the growing use of artificial intelligence (AI), a global GPS, and the Internet of Things (IoT) in the sea freight distribution system for real-time cargo tracking. Additionally, the industry is being positively impacted by the expanding demand for cargo transportation via seaways as a result of the global increase in air freight rates. Further, due to rising sea freight rates, DSV, one of the biggest shipping firms in the world with headquarters in Copenhagen, Denmark, revenue increased from DKK 10,718 in 2021 to DKK 16,021 in 2022.
Growing manufacturing sector in Denmark
The manufacturing segment of Denmark's sea freight logistics market is a pivotal component of the country's trade infrastructure, playing a crucial role in the import and export of goods. This segment encompasses a diverse range of industries, including machinery, equipment, electronics, textiles, and food products, among others. Denmark's strategic geographical location as a gateway to Northern Europe and the Baltic Sea region has contributed significantly to the growth and prominence of its sea freight logistics sector within the manufacturing domain. Furthermore, according to Statistics Denmark, the industrial production manufacturing index of Denmark from January 2021 to December 2022 increased potentially reaching 166 units from 121.5 units. This increase in the manufacturing segment of Denmark's industrial product index is expected to drive the market growth of Denmark's sea freight logistics market.
Market Key Developments
Segmentation: