Freight forwarding is the process of organizing, coordinating, and shipping of goods from one place to another across international borders through a single or multiple carriers. Shipment of goods occur via air, land, or sea. Companies responsible for organizing shipments are known as freight forwarders.
Freight forwarders manage risks and benefits of shipping, both nationally and internationally by performing required tasks such as freight rate negotiations, container tracking, customs documentation, and freight consolidation. Moreover, freight forwarding comprises numerous stages such as export haulage, export customs clearance, origin handling, import customs clearance, destination handling, and import haulage.
Significant factors impacting growth of the global freight forwarding market include growth in international trade, expansion of the e-commerce industry globally, and rise in the free trade agreements between nations. Moreover, growth of the global market is affected by stringent emission regulations. Furthermore, technological advancements cost cutting and lead time reduction due to adoption of multi-modal system influence the market growth.
A free trade agreement (FTA) is an agreement between two or more countries under which countries agree on certain terms & conditions that affect trade in goods and services. The signing of free trade agreements facilitates better trade between two parties and results in rise in import-export activities, which boosts development of the entire logistics ecosystem. Reduction or elimination of tariffs, intellectual property protection, and fair treatment of investors are some of the important advantages of free trade agreements. In addition, the U.S. currently has 14 free trade agreements with 20 countries in force. For the U.S., the main aim of trade agreement is to reduce barriers to U.S. exports, protect U.S. interests competing abroad, and enhance rule of law in the FTA partner country or countries.
The freight forwarding market is segmented on the basis of service, mode of transport, logistics model, customer type, end-use industry, and region. By service, it is categorized into transportation & warehousing, packaging & documentation, and value-added services. By mode of transport, it is classified into air freight forwarding, sea freight forwarding, and land freight forwarding. By customer type, it is bifurcated into B2B and B2C. By end-use industry, it is fragmented into retail & e-commerce, manufacturing, healthcare, automotive, and others. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Freight forwarders manage risks and benefits of shipping, both nationally and internationally by performing required tasks such as freight rate negotiations, container tracking, customs documentation, and freight consolidation. Moreover, freight forwarding comprises numerous stages such as export haulage, export customs clearance, origin handling, import customs clearance, destination handling, and import haulage.
Significant factors impacting growth of the global freight forwarding market include growth in international trade, expansion of the e-commerce industry globally, and rise in the free trade agreements between nations. Moreover, growth of the global market is affected by stringent emission regulations. Furthermore, technological advancements cost cutting and lead time reduction due to adoption of multi-modal system influence the market growth.
A free trade agreement (FTA) is an agreement between two or more countries under which countries agree on certain terms & conditions that affect trade in goods and services. The signing of free trade agreements facilitates better trade between two parties and results in rise in import-export activities, which boosts development of the entire logistics ecosystem. Reduction or elimination of tariffs, intellectual property protection, and fair treatment of investors are some of the important advantages of free trade agreements. In addition, the U.S. currently has 14 free trade agreements with 20 countries in force. For the U.S., the main aim of trade agreement is to reduce barriers to U.S. exports, protect U.S. interests competing abroad, and enhance rule of law in the FTA partner country or countries.
The freight forwarding market is segmented on the basis of service, mode of transport, logistics model, customer type, end-use industry, and region. By service, it is categorized into transportation & warehousing, packaging & documentation, and value-added services. By mode of transport, it is classified into air freight forwarding, sea freight forwarding, and land freight forwarding. By customer type, it is bifurcated into B2B and B2C. By end-use industry, it is fragmented into retail & e-commerce, manufacturing, healthcare, automotive, and others. By region, the report is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the freight forwarding market analysis from 2021 to 2031 to identify the prevailing freight forwarding market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the freight forwarding market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global freight forwarding market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Service
- Transportation and Warehousing
- Packaging and Documentation
- Value-added Services
By Mode of Transport
- Land Freight Forwarding
- Sea Freight Forwarding
- Air Freight Forwarding
By Customer Type
- B2B
- B2C
By End-use Industry
- Retail and E-Commerce
- Manufacturing
- Healthcare
- Automotive
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest Of Asia Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Kuehne+Nagel International AG
- MGF
- Nippon Express Co., Ltd.
- Transporteca
- United Parcel Service of America, Inc.
- Bolloré Logistics
- CEVA Logistics AG
- Schenker Deutschland AG
- Deutsche Post DHL
- Dimerco
- DSV A/S
- Expeditors International of Washington, Inc.
- FedEx
- Hellmann Worldwide Logistics
- Uber Freight LLC
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: FREIGHT FORWARDING MARKET, BY SERVICE
CHAPTER 5: FREIGHT FORWARDING MARKET, BY MODE OF TRANSPORT
CHAPTER 6: FREIGHT FORWARDING MARKET, BY CUSTOMER TYPE
CHAPTER 7: FREIGHT FORWARDING MARKET, BY END-USE INDUSTRY
CHAPTER 8: FREIGHT FORWARDING MARKET, BY REGION
CHAPTER 9: COMPANY LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Freight forwarding Market," the freight forwarding market was valued at $192.50 billion in 2021, and is estimated to reach $285.15 billion by 2031, growing at a CAGR of 4.1% from 2022 to 2031.Asia-Pacific is expected to dominate the global freight forwarding market in 2021. The growth of the market in Asia-Pacific is majorly attributed to the booming e-commerce industry in emerging economies in the region. High government support for development of logistics infrastructure in the region is boosting the market growth. By 2022, Asia-Pacific is expected to account for 42% of the total retail sales globally along with 70% of digital commerce sales. Furthermore, strong economy of Japan, development of infrastructure, and rise in trade facilitation through agreements such as South Asian Preferential Trade Agreement (SAPTA) are the factors that are expected to foster the growth of the freight forwarding market during the forecast period.
The transportation and warehousing segment accounted for a major share in 2021. Transportation & warehousing are the two major functions of logistics. Transportation management is the effective planning and management of logistics operations to maximize use of resources. Transportation management aids in identification of vendor and routing solutions for inbound and outbound orders. Warehousing is defined as the storage of goods, raw materials, semi-finished goods, or finished goods. Warehousing includes functions such as inventory management and order fulfillment. Transportation & warehousing are the two major functions of logistics. Transportation management is the effective planning and management of logistics operations to maximize use of resources. Transportation management aids in identification of vendor and routing solutions for inbound and outbound orders. Warehousing is defined as the storage of goods, raw materials, semi-finished goods, or finished goods. Warehousing includes functions such as inventory management and order fulfillment.
The growth of the global freight forwarding market is propelling, owing to growth in international trade, expansion of the e-commerce industry worldwide, and rise in free trade agreements between nations.
However, stringent emission regulations restrain growth of the freight forwarding industry. Furthermore, increase in technological advancements, cost cutting and lead time reduction due to adoption of multi-modal system are the factors expected to offer growth opportunities during the forecast period.
COVID-19 Impact Analysis
- The outbreak of COVID-19 resulted in flight cancellations, travel bans, and implementation of quarantine measures, which made massive disruption of the supply chain and logistics activities across the globe. The impact of the COVID-19 pandemic has resulted in workforce changes, and temporary restriction on the movement of goods. Several countries across the globe shut down their borders and limited transportation & travel to contain the coronavirus outbreak. For instance, in 2020, in European Union, trucks formed a 37-mile-long lines on A4 highway after Poland closed its border with Germany in mid-March to stop coronavirus spread.
- The pandemic affected almost every dimension of economic activity and individuals globally. As a consequence of the coronavirus outbreak, important supply chains in the logistics and transportation industry were hampered, though differently across air, land, and sea mode of transportation. The supply chain disturbance created by COVID-19 is expected to impact competitiveness, economic growth, and jobs lost in the logistics industry for a while.
- For instance, according to a report by the International Finance Corporation (IFC), total container volumes handled at Chinese ports dropped by 10.1% in the first months of 2020. In addition, air freight volumes fell by 19% in March 2020.
- In addition, as business to business (B2B) logistics industry suffered and came to a halt, business to customer (B2C) emerged during the pandemic, owing to the growth of the online retail and e-commerce industry. Attributed to the lockdown and social distancing impact, the demand for online retailing has increased compared to offline retailing. For instance, in 2019, online shopping rose by 20% and then by 30% during lockdown. Rise in online sales compelled companies to restructure their warehouse to manage e-commerce logistics.
- Moreover, increase has been witnessed in the demand for healthcare and FMCG supplies such as hospital supplies, gloves, sanitizers, vaccinations, and perishable food items, which propels growth of the logistics market during the pandemic.
Key Findings of the Study
- By service, the value-added services segment is anticipated to exhibit significant growth in the near future.
- By mode of transport, the air freight forwarding segment is anticipated to exhibit significant growth in the near future.
- By customer type, the B2C segment is anticipated to exhibit significant growth in the near future.
- By end-use industry, the retail and e-commerce segment is anticipated to exhibit significant growth in the near future.
- By region, North America is anticipated to register the highest CAGR during the forecast period.
- Key players operating in the global freight forwarding market include Bollore Logistics, CEVA Logistics, DB Schenker, DHL Global Forwarding, Dimerco, DSV Panalpina A/S, Expeditors International, Fedex, Hellman Worldwide Logistics, Kuehne+Nagel International AG, MGF (Manitoulin Global Forwarding), Nippon Express Co., Ltd., Transporteca, UPS Supply Chain Solutions, and UBER Freight LLC.
Companies Mentioned
- Kuehne+Nagel International AG
- Mgf
- Nippon Express Co. Ltd.
- Transporteca
- United Parcel Service of America, Inc.
- Bolloré Logistics
- Ceva Logistics AG
- Schenker Deutschland AG
- Deutsche Post Dhl
- Dimerco
- Dsv A/S
- Expeditors International of Washington, Inc.
- Fedex
- Hellmann Worldwide Logistics
- Uber Freight LLC
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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