Report Overview
Freight Forwarding Market Size, Highlights
The freight forwarding market is expected to grow at a CAGR of 3.21% from US$173.567 billion in 2022 to US$216.595 billion in 2029.
Freight forwarding, a crucial process for international trade, intricately manages the seamless movement of shipments and goods between multiple destinations, skillfully overseen by a proficient freight forwarder. These professionals undertake a diverse array of responsibilities, ranging from meticulously preparing comprehensive cargo manifests to deftly handling insurance claims and issuing internal bills of lading.
The comprehensive freight forwarding process encompasses a series of meticulously coordinated stages, including the initial export haulage, stringent export customs clearance, precise origin handling, secure ocean freight management, efficient destination handling, meticulous import customs clearance, and finally, the conclusive import haulage.
Furthermore, freight forwarders are entrusted with the meticulous inspection and verification of the received goods, ensuring that they have been transported without any untoward incidents or damage. Post-shipment, these forwarders efficiently handle the reception and management of all pertinent documents, ensuring that all outstanding documentation and carrier bills are meticulously managed, thereby facilitating a seamless and hassle-free process for all parties involved. Given their pivotal role in orchestrating the complex logistical dance of international trade, freight forwarding stands as a cornerstone for driving the success and growth of businesses operating on a global scale.
Introduction:
The global freight forwarding market is a dynamic and intricate industry tasked with the facilitation of the import and export of goods across international borders. Predictions suggest a steady growth trajectory in the foreseeable future, primarily fueled by the surge in international trade volume, the expansive reach of the e-commerce sector on a global scale, and the proliferation of free trade agreements among various nations. Service divisions encompass pivotal aspects such as transportation and warehousing, meticulous packaging and documentation, as well as the provision of value-added services for clients.
Modes of transport are classified into air, sea, and land freight forwarding, which includes both road and rail transportation. Customers are identified as either B2B or B2C, while end-use industries span across manufacturing, medical, e-commerce, construction, and other sectors. The freight forwarding process necessitates adherence to a comprehensive array of documents, tailored to meet the specific regulatory requirements of different countries.
Drivers:
- Increase in international trade: The exponential expansion of international trade has emerged as a pivotal catalyst for the robust development of the freight forwarding market. This surge in international trade activities can be primarily attributed to the escalating momentum of globalization and the burgeoning prevalence of free trade agreements between various nations.
Consequently, this has precipitated a remarkable upsurge in cross-border trade volumes, thereby triggering an unprecedented surge in the demand for efficient and comprehensive freight forwarding services. As businesses increasingly seek to capitalize on the benefits of global trade, the pivotal role played by freight forwarding services in facilitating the seamless movement of goods across international borders has become more pronounced than ever before.
- Expansion of the e-commerce industry: The remarkable expansion of the e-commerce industry has catalyzed a significant surge in the requirement for proficient and effective freight forwarding services. This monumental upsurge in online retail has sparked an urgent necessity for streamlined and dependable logistics solutions, essential for the seamless and timely transportation of products across diverse geographical locations.
As consumer demands continue to evolve and intensify, the pressure on the logistics sector has grown exponentially, necessitating a strategic reevaluation of supply chain dynamics and the implementation of innovative techniques to optimize the movement of goods from their points of origin to their final destinations.
- Value-added services: Freight forwarders, operating in an increasingly competitive market, have recognized the need to distinguish themselves by providing a comprehensive array of value-added services. In addition to their core transportation functions, these forward-thinking companies have expanded their offerings to include an extensive range of supplementary solutions such as customized clearance processes tailored to individual client needs, meticulous inventory management services that ensure efficient supply chain operations, and innovative packaging strategies that prioritize product safety and integrity.
By integrating these additional services into their operations, freight forwarders have not only enhanced the overall customer experience but have also succeeded in bolstering customer loyalty and satisfaction, leading to a significant increase in client retention rates.
- Digitalization: The freight forwarding industry is currently in the midst of a significant digital transformation. This evolution is characterized by the widespread integration of cutting-edge technologies, including big data analytics, artificial intelligence, and automated processes. By embracing digitalization, this industry has witnessed a remarkable surge in operational efficiency, leading to streamlined workflows, optimized resource utilization, and ultimately, a notable reduction in overall costs.
Additionally, the incorporation of digital technologies has revolutionized the customer experience, facilitating smoother transactions, quicker response times, and a more personalized approach to service delivery. As a result, the digital revolution within the freight forwarding sector continues to reshape the landscape, driving unprecedented advancements and setting new standards for operational excellence and customer satisfaction.
- Sustainability: Sustainability, as a fundamental pillar, is progressively shaping the landscape of the freight forwarding market, with its influence extending far beyond conventional business models. In a world where consumers are cultivating an enhanced environmental awareness, and regulatory bodies are imposing stringent guidelines to curb carbon emissions, enterprises are finding themselves compelled to embark on a journey towards more sustainable practices.
In response, freight forwarders are fervently embracing an array of eco-conscious strategies and initiatives, amplifying their commitment to the environment. This involves a paradigm shift in the industry, where eco-friendly packaging solutions are gaining traction, and emission-reduction measures are being integrated into the core of logistics operations. Amidst the escalating demand for greener logistics services, the industry is witnessing a notable transformation, emphasizing the necessity for harmonizing commercial activities with ecological responsibility.
Products offered by key companies:
- CEVA's LCL services are ideal for smaller shipments or shipments that cannot fill an entire container. CEVA can consolidate your shipment with other LCL shipments to save you money. CEVA also offers a variety of value-added services for LCL shipments, such as cargo consolidation, warehousing, and customs clearance.
- Sinotrans India offers a full range of road and rail freight services, including door-to-door delivery, express service, full truckload, and less-than-truckload services. Sinotrans India also has a strong network of road and rail carriers, which allows it to offer its customers competitive rates and reliable service.
The Asia Pacific region is expected to hold a significant share of the freight forwarding market:
The Asia Pacific region is poised to dominate a significant portion of the freight forwarding market owing to several pivotal factors. Firstly, there is a pronounced emphasis on infrastructure development within the region.
Notably, substantial investments are being made to enhance transportation infrastructure, thereby fostering improved connectivity and the emergence of new business prospects. Crucial networks like the Asian Highway, Trans-Asian Railway, and the establishment of dry ports under ESCAP have assumed a pivotal role in facilitating seamless land transport operations. Furthermore, the region has experienced a substantial surge in international trade, with key players such as China, India, and Japan actively contributing to the dynamic freight and logistics market.
This surge in trade has prompted a collective effort towards ensuring a robust expansion of exports by the year 2030. This endeavour has been propelled by a series of government-led initiatives aimed at bolstering trade activities across the region. In parallel, the Asia Pacific region has emerged as a global leader in the realm of e-commerce, commanding a staggering 50% share of all global retail e-commerce sales. This rapid growth in online shopping has consequently engendered a heightened demand for efficient and dependable logistics services capable of facilitating the seamless movement of goods from one destination to another.
Lastly, the cost-effectiveness of ocean freight forwarding has further contributed to the region's burgeoning prominence in the freight forwarding market. Particularly when compared to air freight forwarding, ocean freight presents itself as a more economical mode of transport, rendering it an appealing choice for businesses aiming to transport large volumes of goods across extensive distances.
Market developments:
- In November 2022, Raft, a leading provider of freight forwarding software, integrated with PayCargo, an all-in-one logistics payment platform. This integration will enhance Raft's new AI payment functionality tool, an industry-first that enables freight forwarders to automate their operations and free up their human workforce to focus on more strategic tasks.
- In August 2022. Maersk, a global logistics company, has completed its acquisition of LF Logistics, a Hong Kong-based contract logistics company with expertise in omnichannel fulfillment services, e-commerce, and inland transport in Asia-Pacific. LF Logistics will be rebranded as Maersk. The acquisition adds 223 warehouses to Maersk's existing portfolio, bringing the total number of facilities to 549 worldwide, spanning 9.5 million square meters.
Freight Forwarding Market Scope:
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$173.567 billion |
| Market Size Value in 2029 | US$216.595 billion |
| Growth Rate | CAGR of 3.21% from 2022 to 2029 |
| Study Period |
2019 to 2029 |
| Historical Data |
2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
|
| Companies Covered | |
| Regions Covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Customization Scope | Free report customization with purchase |
Segmentation:
- By Mode Of Transport
- Air Freight Forwarding
- Rail Freight Forwarding
- Ocean Freight Forwarding
- Road Freight Forwarding
- By Services
- Transportation & Warehousing
- Value-added Services
- Insurance
- Others
- By Application
- Healthcare
- Oil & Gas
- Retail
- Food & Beverage
- Industrial and Manufacturing
- Others
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- United Kingdom
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- Japan
- China
- India
- South Korea
- Indonesia
- Thailand
- Others
- North America