Freight Forwarding Market By Mode of Transportation (Road, Maritime, Rail, Air (Customer Type (B2B, B2C), Service (Transportation & Warehousing, Value-added Services, Packaging), Application (Industrial and Manufacturing, Retail, Healthcare, Oil and Gas, Food and Beverages), & Region for 2024-2031

Freight Forwarding Market Valuation – 2024-2031

AI is transforming logistics and supply chain management by offering cost and time savings, boosting productivity, and improving accuracy through automation and real-time data analysis. Thus, the rapid integration of artificial intelligence (AI) surge the growth of market size surpassing USD 181.92 Billion in 2023 to reach the valuation of USD 221.68 Billion by 2031.

The surging demand for reliable and efficient goods transportation, fueled by the rapid growth of e-commerce, is propelling the freight forwarding sector. Thus, the increasing demand for reliable and efficient goods transportation enables the market to grow at a CAGR of 2.76% from 2024 to 2031.

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Freight Forwarding Market: Definition/ Overview

Freight forwarding is a logistics service that organizes and oversees the transportation of goods from one location to another on behalf of shippers. Acting as intermediaries, freight forwarders handle complex processes including customs clearance, cargo insurance, warehousing, and choosing efficient routes and carriers. This service is essential for businesses that require cross-border shipping but lack the resources or expertise to navigate regulatory, logistical, and operational challenges independently.

The Freight Forwarding Market has seen substantial growth with the rise of global trade and e-commerce, driven by a demand for efficient, reliable, and cost-effective international shipping solutions. By leveraging digital tools and multimodal transport options—such as air, sea, and land—freight forwarders enhance shipment tracking, reduce transit times, and optimize cost efficiency. However, the industry faces challenges including regulatory complexity, fluctuating fuel costs, and the need for sustainable practices, all of which are shaping its evolution in an increasingly interconnected world.

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How does Rapid E-commerce Use Contribute to the Growth of the Freight Forwarding Market?

E-commerce growth has significantly driven demand for freight forwarding services. According to UNCTAD, e-commerce sales grew by 27.6% in 2020 alone, and cross-border e-commerce trade is projected to grow at a compound annual growth rate (CAGR) of 14% through 2023. This surge in online shopping necessitates efficient freight forwarding for rapid, global product movement. Increased international trade has fueled freight forwarding demand. According to the World Trade Organization (WTO), global merchandise trade volume increased by 10.8% in 2021 and was projected to grow by an additional 3% in 2023. Freight forwarders are essential for managing the complexities of international shipments and customs processes.

The growth of temperature-sensitive shipments, especially in pharmaceuticals and perishable goods, drives the need for cold chain logistics. The WHO reported a 60% rise in cold chain logistics demand for COVID-19 vaccine distribution between 2021 and 2023, highlighting the critical role of freight forwarding in maintaining temperature-controlled shipping. The COVID-19 pandemic highlighted the need for resilient supply chains. Over 75% of supply chain leaders planned to improve flexibility by diversifying their logistics and transport options, significantly increasing demand for multimodal freight forwarding solutions?.

How Skilled Labour Shortage and Infrastructure Bottlenecks Affect Freight Forwarding?

The logistics industry is facing a talent shortage, particularly in skilled freight forwarding roles. The U.S. Bureau of Labor Statistics indicated a 20% labor gap in logistics roles in 2022, leading to operational challenges and increased costs as companies struggle to meet demand with fewer workers. Congested ports and inadequate infrastructure create delays in freight forwarding. The World Bank noted a 15% increase in average port dwell times in 2021, impacting timely shipments and reducing logistics efficiency, particularly in high-volume regions like Asia and Europe.

Trade restrictions and sanctions resulting from geopolitical tensions disrupt freight forwarding. The Russia-Ukraine conflict, for example, led to a 25% decrease in freight volumes between Europe and Russia in 2022, according to the WTO, forcing forwarders to reroute and impacting cost efficiency. Freight forwarders face pressure to adopt eco-friendly practices, which can be costly. A 2022 International Transport Forum report found that implementing green logistics solutions increased operating costs by up to 18%, as companies need to invest in energy-efficient technologies and green certifications.

Category-Wise Acumens

How the Expansion of Manufacturing Activities Surge the Growth of Industrial and Manufacturing Segment?

The industrial and manufacturing segment leads the Freight Forwarding Market, driven by the global expansion of manufacturing activities and the need to protect the integrity of goods in transit. As industries grow and products are shipped across borders, ensuring that goods reach their destination undamaged becomes essential, making reliable freight forwarding services a top priority for companies. Industrial and manufacturing firms often operate on a global scale, requiring seamless freight forwarding solutions to manage the sourcing of raw materials, support complex production workflows, and facilitate efficient distribution to markets worldwide.

Moreover, the rise of Just-in-Time (JIT) manufacturing practices has intensified the demand for precise and reliable freight forwarding. By reducing inventory costs, JIT enables companies to stay agile and responsive to market demand, yet it places stringent requirements on the timely delivery of materials. This approach mandates that raw materials and components arrive exactly when needed, avoiding costly delays in production. Freight forwarding companies are thus essential partners, ensuring punctual and dependable logistics. With JIT becoming a cornerstone in modern manufacturing, the freight forwarding industry is set for sustained growth.

How the Rapid Integration of Advanced Technology Surge the Growth of B2B Segment?

The B2B segment is the leading in the Freight Forwarding Market, owing to the rapid integration of advanced technology and an increasing focus on sustainability. B2B clients now prioritize tech-driven logistics solutions that enhance transparency, control, and efficiency within their supply chains. Key technologies, such as transportation management systems (TMS), real-time tracking, and sophisticated analytics, empower B2B customers to streamline their shipping processes, optimize routing, and reduce operational costs. This technology integration allows businesses to proactively manage logistics and adapt quickly to changing market demands, thereby improving overall supply chain resilience and responsiveness.

In addition to efficiency gains, sustainability has become a significant priority for B2B customers in the freight forwarding sector. Environmental concerns and regulatory frameworks are prompting companies to seek eco-friendly freight services, with an emphasis on minimizing carbon footprints and adhering to greener practices. This shift includes carbon-neutral shipping options, use of electric or alternative-fuel vehicles, and sustainable supply chain initiatives. As companies are increasingly held accountable for their environmental impact, freight forwarders offering sustainable solutions are better positioned to meet the demands of conscientious B2B customers, making this segment central to the growth and evolution of the Freight Forwarding Market.

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Country/Region-wise Acumens

How does the Logistics Infrastructure in North America Support its Dominance in Freight Forwarding Services?

The logistics infrastructure in North America significantly bolsters its dominance in freight forwarding services, facilitating efficient transportation and trade. The region boasts a vast network of highways, railways, and airports, enabling seamless connectivity between major cities and ports. According to the American Society of Civil Engineers (ASCE), the U.S. freight system moves approximately 55% of the nation’s goods by weight, illustrating the crucial role of infrastructure in supporting trade volumes. This well-developed logistics framework allows freight forwarders to optimize routes, reduce transit times, and enhance overall service reliability.

Furthermore, advanced technology and innovation are integral to North America’s logistics landscape. The integration of digital platforms and automated systems streamlines supply chain management, providing real-time tracking and inventory management capabilities. As e-commerce continues to rise, efficient last-mile delivery solutions are increasingly important. Consequently, North America’s robust logistics infrastructure not only sustains its freight forwarding dominance but also adapts to evolving market demands and customer expectations in the global trade environment.

How are Economic Developments in Countries Like China and India Influencing the Freight Forwarding Landscape in Asia Pacific?

Asia Pacific region is the fastest-growing region in the Freight Forwarding Market during the forecast period. Economic developments in countries like China and India are profoundly reshaping the freight forwarding landscape in the Asia Pacific region, primarily driven by rapid industrialization and increasing consumer demand. According to the Asian Development Bank (ADB), Asia’s GDP is projected to grow by 4.5% in 2024, with China and India contributing significantly to this growth. This economic expansion is leading to higher volumes of imports and exports, thereby increasing the demand for efficient freight forwarding services. As industries ramp up production to meet domestic and international needs, the reliance on freight forwarders for managing complex logistics has surged.

Government initiatives aimed at improving infrastructure and trade policies further enhance the freight forwarding sector. For instance, China’s Belt and Road Initiative (BRI) has invested over $1 trillion in infrastructure development, facilitating smoother trade routes across Asia. As a result, ocean freight forwarding is witnessing accelerated growth, with the sector projected to reach a value of $12 billion by 2025, underscoring the pivotal role of these economic developments in shaping the future of freight forwarding in the Asia Pacific.

Competitive Landscape

The Freight Forwarding Market is highly competitive, characterized by a mix of global and regional players. Companies focus on innovation, technology adoption, and specialized services to enhance operational efficiency and meet evolving customer demands, driving continuous improvement and differentiation in the sector.

Some of the prominent players operating in the Freight Forwarding Market include:

DHL Global Forwarding, Kuehne + Nagel International AG, DB Schenker, Expeditors International of Washington, Inc., H. Robinson Worldwide, Inc., DSV Panalpina A/S, Nippon Express Co., Ltd., UPS Supply Chain Solutions, Sinotrans Limited, CEVA Logistics.

Freight Forwarding Latest Developments

• In August 2023, DHL announced the opening of a new 1 million square foot distribution center in Illinois, aimed at enhancing its supply chain capabilities in the U.S. This facility will support e-commerce growth and improve service efficiency for customers.
• In July 2023, A.P. Moller-Maersk announced the acquisition of the logistics company Pilot Freight Services to strengthen its position in the North American market.

Report Scope

Freight Forwarding Market, By Category

Mode Of Transportation:

• Road
• Maritime
• Rail
• Air

Customer Type:

• B2B
• B2C

Service:

• Transportation & Warehousing
• Value-added Services
• Packaging

Application:

• Industrial and Manufacturing
• Retail
• Healthcare
• Oil and Gas
• Food and Beverages

Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
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