The author forecasts a real 15-19 CAGR of 4.6% for the global freight forwarding market. Europe’s market share of this is expected to contract whilst emerging regions gain share in its place. Intra-regional trade dominates the global picture, with the top three intra-regional trade lanes alone accounting for 52% of global trade. However, new trade deals such as the TransPacific Partnership and the Transatlantic Trade and Investment Partnership are likely to boost trade between APAC and North America, and the EU and the US.
Combined, the 20 leading forwarders are thought to represent almost 58% of the market, but small forwarders continue to effectively compete against the largest in the industry, demonstrating that economies of scale are not the be-all and end-all of the business.
For SMEs to prosper they must exploit the opportunities that the democratization of technology has brought in order to grow and lock in customers.
- Disintermediation from cloud-based technology start-ups is unlikely, but the technology itself will become increasingly important for freight forwarders.
- A collaborative supply network, driven by software and with a scope beyond individual supply chains, could transform the industry.
- Mergers and acquisitions in the industry have disrupted the global, air and sea freight rankings. DSV’s acquisition of UTi caused the most impact with the combined entity’s forwarding revenues estimated to be around €2bn larger than DSV a year ago. Looking ahead, it would be surprising if there were no significant deals to alter the landscape of the market even more. Further consolidation seems inevitable.
- The systemic impact of low global oil prices has been a double edged sword for freight forwarders; whilst some have been able to increase their profit margin, others have taken a substantial hit to revenues as a result of declining demand for industrial projects.
- With low demand in the market, several companies look to be focusing their efforts on improving profitability rather than growth. This has been manifested through rationalisation, investments in software, and an emphasis on high value contract opportunities.
1.1 Key findings
1.2 Foreword by Professor John Manners-Bell
1.4 Key trends and market opportunities
1.4.1 Yield dilution
1.4.2 Relationship with global trade
1.4.3 Regionalization, near-sourcing and emerging markets
1.5 How will the industry evolve?
1.5.1 Adding end-to-end capabilities and value added services
1.6 Consolidation in the industry
1.7 Technology developments
1.7.1 4PLs and control towers
2.0 Financial and volume analysis of freight forwarding
2.1 Air freight forwarding sectors ‘top line’ performance in
2.2 Sea freight forwarding sectors ‘top line’ performance in
2.3 Verticals and geographies
2.4 Bottom line margin and profitability analysis
3.0 Technology in freight forwarding
3.1 Technology in freight forwarding overview
3.2 The importance of digitisation in freight forwarding
3.3 What are the technologies changing the industry?
3.4 What does this mean for freight forwarders?
3.5 What are the real threats for industry incumbents?
3.6 Why forwarders will adapt and survive
4.0 Trade lane analysis
4.1 Global trade patterns
4.2 Top 10 regional trade flows
4.2.1 Regional trade flows of aerospace parts
4.2.2 Regional trade flows of fashion/ textiles
4.2.3 Regional trade flows of electronics
4.2.4 Regional trade flows of machinery
4.2.5 Regional trade flows of optical, photo, technical and medical apparatus
4.2.6 Regional trade flows of agriculture, food & perishables
4.2.7 Regional trade flows of perishables
4.2.8 Regional trade flows of pharmaceuticals
4.2.9 Regional trade flows of cars
4.2.10 Regional trade flows of motor vehicle parts
4.2.11 Regional trade flows of chemical and allied sectors
4.3 EU exports and imports
4.3.1 Extra-EU air exports
4.3.2 Extra-EU air imports
4.3.3 Extra-EU sea exports
4.3.4 Extra-EU sea imports
4.4 US exports and imports
4.4.1 US air exports
4.4.2 US air imports
4.4.3 US sea exports
4.4.4 US sea containerised exports
4.4.5 US sea imports
4.4.6 US sea containerised imports
5.0 Market size and forecast
5.1 Global freight forwarding market size and forecast
5.1.1 Global freight forwarding market size and forecast by region
5.1.2 Leading freight forwarders
188.8.131.52 Leading freight forwarders - Market share
5.2 Global air freight forwarding market size and forecast
5.2.1 Global air freight forwarding market size and forecast by region
5.2.2 Leading air freight forwarders - Revenue
184.108.40.206 Leading air freight forwarders - Revenue - Market share
5.2.3 Leading air freight forwarders - Tonnes
220.127.116.11 Leading air freight forwarders - Tonnes - Market share
5.3 Global sea freight forwarding market size and forecast
5.3.1 Global sea freight forwarding market size and forecast by region
5.3.2 Leading sea freight forwarders - Revenue
18.104.22.168 Leading sea freight forwarders - Revenue - Market share
5.3.3 Leading sea freight forwarders - TEUs
22.214.171.124 Leading sea freight forwarders - TEUs - Market share
5.4 Africa freight forwarding market size and forecast
5.5 Asia Pacific freight forwarding market size and forecast
5.5.1 Asia Pacific freight forwarding market size and forecast by country
5.6 Europe freight forwarding market size and forecast
5.6.1 Europe freight forwarding market size and forecast by country
5.7 Middle East freight forwarding market size and forecast
5.8 North America freight forwarding market size and forecast
5.8.1 North America freight forwarding market size and forecast by country
5.9 South and Central America & the Caribbean freight forwarding market size and forecast
5.9.1 South and Central America & the Caribbean freight forwarding market size and forecast by country
6.0 Profiles of major freight forwarders
6.5 DB Schenker
6.6 DHL Global Forwarding
6.9 Kintetsu World Express
6.10 Kuehne + Nagel
6.11 Nippon Express
6.14 SNCF Logistics