Freight forwarding involves the planning, organization and implementation of a supply chain. It includes activities such as cargo transportation, import/export documentation, and shipments. The industry provides services to businesses and individuals wishing to transport goods internationally. It relieves shippers and cargo owners of the complex logistical and legal operations of importing and exporting goods. Freight forwarders can help minimize costs and ensure cargo arrives at its destinations as efficiently as possible.
The global Freight Forwarding Market is estimated to be valued at US$ 248.69 Bn in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Advanced technologies can help track shipments in real-time, coordinate with logistics partners, and route cargo using the most effective modes of transport. Data-driven decision making allows identifying areas for cost savings, improving transit times, and mitigating risks. It also helps freight forwarders proactively manage disruptions in the supply chain. Leveraging technologies such as AI, IoT, blockchain etc. can enable more seamless paperless trade, create transparency in pricing and improve customer experiences. With increasing demand for superior logistical services, freight forwarders that optimize processes through technologies are well-positioned to capture market share and benefit from industry growth.
Threat of new entrants: Low as the freight forwarding market requires high investments and established networks across different regions to operate effectively. Bargaining power of buyers: Moderate as there are a large number of freight forwarder options. Bargaining power of suppliers: Moderate as freight forwarders depend on transportation services like shipping lines, airlines which have significant pricing power. Threat of new substitutes: Low as no direct substitutes exist for freight forwarding services. Competitive rivalry: High as the market is quite fragmented and competitive with both global and regional players competing for market share.
Strengths: Established global networks, economies of scale, end-to-end supply chain solutions. Weaknesses: Low differentiation, vulnerability to economic cycles. Opportunities: Growth in global trade, investments in transport infrastructure. Threats: Trade protectionism, rising fuel costs, capacity constraints, intense competition.
The Global Freight Forwarding Market Size is expected to witness high growth over the forecast period owing to increasing trade volumes globally. The Asia Pacific region currently dominates the market and is expected to continue its dominance during the forecast period led by China, India, and other developing Asian countries. Freight volumes within the region and with the rest of the world are rising rapidly.
Key players in the Freight Forwarding market are Agility, Bolloré Logistics, CEVA Logistics, DB Schenker, DHL Global Forwarding, Dimerco, DSV Panalpina A/S, Expeditors International, Hellmann Worldwide Logistics, Kuehne + Nagel International AG, MGF (Manitoulin Global Forwarding), Nippon Express Co., Ltd., and UPS Supply Chain Solutions. These players are focusing on expanding their networks and services through mergers and acquisitions to capture more market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it