Global Statistics Representing Freight Forwarding Market Scenario
Freight forwarding services comprise consolidation, storage, handling, packaging, distribution, ancillary, and advisory services. In addition, freight forwarding service providers liaise with customs for proper documentation and identify the best, cheapest, and quickest routes. Reducing air and sea freight rates due to falling oil rates, development of the e-commerce industry and increasing prevalence of cloud-based operations that simplify supply chain management are some of the prime drivers fostering the growth of the freight forwarding market.
According to the World Trade Organization (WTO), the global growth rate for world trade was estimated to be 4.4% in 2018, registering a marked increase of over 3.6% in 2017. This represents a positive outlook for the global freight forwarding market in the near future. Stronger growth in 2018 is attributed to the resurgence of Asian trade flow as intra-regional shipments picked up and import demand in North America recovered after stalling in 2016.
Logistic service providers are moving towards advanced technologies such as artificial intelligence and blockchain, which is likely to bring a paradigm shift in the working of the logistics industry. Such technological adoptions are expected to boost the potential of the freight forwarding market in coming years.
The global freight forwarding market is expected to grow at CAGR of 4.6% during the forecast period, 2019–2026.
The freight forwarding market can be segmented by route, end user and geography.
Based on route, the freight forwarding market can be segmented into air, sea, road, and intermodal. Based on end-user, the market can be segmented into automotive, industrial and aerospace, consumer and retail, healthcare, and others.
Intermodal is pegged to be the fastest growing segment among all the segments by route as it offers an environmental and cost advantage over traditional modes of transport. Intermodal freight transport has gained significant traction over the last few years to improve data transfer and common intermodal equipment such as containers. Such combinations of transport modes have resulted in more environmental and cost-effective supply chains.
The global freight forwarding market has been segmented into five regions, namely North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America is a prominent region in the global freight forwarding market. In the region, the U.S. transportation and logistics industry is highly advanced with the presence of many domestic and international companies. The region’s wholesale and retail sector is the largest consumer of freight forwarding services, owing to the use of air, rail, truck, and water transportation services.
The massive interconnected globalized economy comprises thousands of bilateral trade relationships. The European Freight Forwarders Association (EFFA) provides a forum for freight forwarders along with a global network of quality agents to equip each member to better compete in the growing global economy. Unlike multi-national freight concerns, EFFA agents are positioned to offer personalized and varied services to a varied market.
During the last few years, China has emerged as the largest production cluster, which has increased its trading partners extending it to resourceful African region. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement between 11 countries, China’s European land bridge, and ‘One Belt, One Road’ are some of the key initiatives around the globe fostering the growth of the freight forwarding market.
The Middle East is anticipated to register a healthy growth rate during the forecast period.
Some of the prominent players in the freight forwarding market are Ceva Logistics, Damco International, DB Schenker Logistics, DHL Supply Chain & Global Forwarding, DSV Air & Sea, Expeditors International of Washington, Hellmann Worldwide Logistics, Kerry Logistics, Kuehne+Nagel Inc., LF Logistics, Logwin Logistics, Nippon Express, Orient Overseas Container Line Limited, Panalpina Inc., Pantos Logistics, SDV/Bollore Group, Sinotrans Limited, UPS Supply Chain Solutions, UTI Worldwide, and Yusen Logistics.
Freight Forwarding Market Segmentation
By End User
Why Buy This Report?
The core premise of forwarding is the process of buying space and securing volumes, ensuring the safe arrival of goods at said destination, and building long-lasting customer relationships. Increasing global trade with growth of emerging economies and development of new trade routes are expected to further provide impetus for market growth in the future.
Our report covers insights on the freight forwarding market, focusing on recent developments across regions and development strategies of companies. The following sections are specifically covered in the report,