California Freight And Logistics Market Size and Share
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 185.11 Billion |
| Market Size (2030) | USD 223.96 Billion |
| CAGR (2025 - 2030) | 3.94% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
California Freight And Logistics Market Analysis by Mordor Intelligence
The California Freight And Logistics Market size is estimated at USD 185.11 billion in 2025, and is expected to reach USD 223.96 billion by 2030, at a CAGR of 3.94% during the forecast period (2025-2030).
- California's freight and logistics market is reportedly expanding due to factors such as e-commerce growth, nearshoring, increasing freight volumes, technological advancements, infrastructure improvements, and government support.
- Industry sources indicate that sustainable practices in freight and logistics are becoming a priority as the market evolves. Reports suggest that in February 2024, the California Energy Commission approved a USD 1.9 billion investment plan, set to run through 2027, aimed at enhancing infrastructure for zero-emission vehicles and transportation. This plan reportedly includes the expansion of EV charging and hydrogen refueling networks. It has been noted that transportation, including fuel production, contributes to approximately half of California’s greenhouse gas (GHG) emissions and 80% of the state’s air pollutants.
- Experts have observed significant advancements in supply chain technology within California's logistics sector. These include increased adoption of alternative fuels, electric trucks, and innovations in autonomous trucking. For instance, reports from May 2024 indicate that Amazon introduced its largest fleet of heavy-duty electric trucks, which are now operational across Southern California. These trucks are also said to mark the company's first use of electric vehicles in its ocean freight operations.
- According to a report published by Transport Topics in January 2025, analysts and carrier executives have expressed optimism about the freight market's performance in California for 2025. Contract truckload rates are projected to rise by 2.2% on an annual basis, with a 5% year-over-year increase anticipated by the end of 2025. Spot truckload rates, which are believed to have passed their lowest point, are forecasted to grow by 5.5% to 6% during the same period.
- In conclusion, California's freight and logistics market is poised for growth, driven by technological advancements, sustainability initiatives, and favorable market conditions. The state's focus on zero-emission infrastructure and the adoption of innovative technologies are expected to play a pivotal role in shaping the market's future trajectory.
California Freight And Logistics Market Trends and Insights
Increasing Reliance on Road Transport Driving the Market
California's freight and logistics market is reportedly experiencing growth due to an increasing reliance on road transport, particularly truckload services, as projected for 2025. Key industries such as e-commerce, agriculture, and retail are said to be contributing to higher freight volumes, which is creating a demand for efficient trucking solutions. In the U.S., reports indicate that truckload demand increased by 0.5% in Q3 2024, attributed to factors like consumer spending and imports. Additionally, container imports reportedly rose by 1.7% in September 2024, reflecting a 14.4% year-over-year increase.
It was reported that on July 30, 2024, Knight-Swift Transportation Holdings Inc. acquired the operating assets and assumed certain liabilities of Dependable Highway Express, Inc.'s non-union regional less-than-truckload (“LTL”) division (“DHE”), based in Los Angeles, California. This acquisition is believed to align with the company's strategy to maintain reliable service levels as freight volumes continue to grow.
Furthermore, in August 2024, Nikola Corporation reportedly strengthened Southern California's hydrogen infrastructure by opening a new HYLA station at Tom's Truck Center in Los Angeles County. The station, located near the 5 Freeway, one of the busiest truck routes in the U.S., is said to support the volume ramp-up for Nikola's Class 8 hydrogen fuel cell electric trucks in the region.
In conclusion, California's freight and logistics market appears to be evolving with advancements in trucking solutions and infrastructure, driven by the needs of key industries and the adoption of innovative technologies.
Market Supported by Retail and Trade Growth
California's freight and logistics market is being driven by the increasing demand for transportation, warehousing, and distribution services, which is directly linked to the growth of the retail and trade sectors. The need for efficient supply chain solutions has become critical as businesses aim to meet consumer demands and maintain competitiveness.
The retail and trade sectors have contributed to the market by requiring robust export and import logistics. For instance, Mexico, California's top export partner, saw exports increase from USD 30.79 billion in 2022 to USD 33.26 billion in 2023, highlighting the growing need for cross-border transportation services. Similarly, Canada, the second largest export destination, accounted for USD 19.07 billion in goods, emphasizing the importance of maintaining strong trade routes. Although exports to China, Japan, and South Korea experienced declines, the overall demand for logistics services remains significant due to the volume of goods being transported.
Additionally, the demand for specialized storage facilities, such as cold storage for food exports, has grown substantially. This trend reflects the increasing need for advanced warehousing solutions to handle perishable goods efficiently. The logistics market has also benefited from the rise in intermodal transport services, which provide cost-effective and flexible options for businesses managing large-scale shipments.
In conclusion, the growth of California's freight and logistics market is closely tied to the retail and trade sectors' performance. The increasing demand for transportation, warehousing, and specialized storage solutions underscores the critical role of logistics in supporting the state's economic activities and global trade connections.
Competitive Landscape
The California's freight and logistics market is fragmented, featuring a mix of regional, national, and international players. These entities operate across multiple segments, including road, rail, warehousing, and third-party logistics (3PL). While industry giants dominate the scene, numerous key players are forging collaborations, spearheading innovations, and expanding their business horizons. These strategic moves aim to elevate service offerings and secure a competitive advantage. Prominent players in this dynamic market include Agramont Worldwide Logistics Inc, Flexport, SHIPHYPE Fulfillment, and UPS.
For instance, in July 2024, Knight-Swift Transportation Holdings acquired Dependable Highway Express (DHE), an LTL carrier operating in California, Nevada, and Arizona, as reported by TruckingDive. Los Angeles-based DHE, previously owned by Dependable Supply Chain Services, will be rebranded as DHE Transportation. This acquisition strengthens California's freight and logistics market.
California Freight And Logistics Industry Leaders
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Agramont Worldwide Logistics Inc
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Flexport
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SHIPHYPE Fulfillment
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UPS
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AP Express Logistics
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2024: IMC Logistics has acquired American Pacific Transportation, expanding its drayage capacity at West Coast ports. The acquisition adds over 500 trucks to IMC's California fleet and includes facilities in Lompoc and Calexico. American Pacific operates in Calexico, Chino, Commerce, San Diego, and Lompoc.
- February 2024: CDL 1000, a digital freight broker, has acquired rival Next Trucking in an equity deal, marking further consolidation in the tech-driven shipping sector. The merger combines CDL 1000's short-haul seaport-to-warehouse operations with Next Trucking's focus on the Los Angeles-Long Beach port complex.
California Freight And Logistics Market Report Scope
Freight and logistics refer to the comprehensive process of planning, executing, and managing the movement and storage of goods. This process ensures the efficient transportation of goods from their point of origin to their final destination. It involves the use of various transport modes, such as road, rail, air, and sea, along with strategic supply chain management practices to optimize cost, time, and reliability.
California freight and logistics market report is segmented by logistics function (Courier, Express, and Parcel (CEP), freight forwarding, freight transport (by mode of transport (air, rail, road, sea and inland waterways)), warehousing and storage, other services), by end user industry (agriculture, fishing and forestry, construction, manufacturing, oil and gas, mining and quarrying, wholesale and retail trade, others). The report offers market size and market forecasts for California freight and logistics market in value (USD).
| Courier, Express, and Parcel (CEP) | ||
| Freight Forwarding | ||
| Freight Transport | By Mode of Transport | Air |
| Rail | ||
| Road | ||
| Sea and Inland Waterways | ||
| Warehousing and Storage | ||
| Other Services | ||
| Agriculture |
| Fishing and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas |
| Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
| By Logistic Function | Courier, Express, and Parcel (CEP) | ||
| Freight Forwarding | |||
| Freight Transport | By Mode of Transport | Air | |
| Rail | |||
| Road | |||
| Sea and Inland Waterways | |||
| Warehousing and Storage | |||
| Other Services | |||
| By End User Industry | Agriculture | ||
| Fishing and Forestry | |||
| Construction | |||
| Manufacturing | |||
| Oil and Gas | |||
| Mining and Quarrying | |||
| Wholesale and Retail Trade | |||
| Others | |||
Key Questions Answered in the Report
How big is the California Freight And Logistics Market?
The California Freight And Logistics Market size is expected to reach USD 185.11 billion in 2025 and grow at a CAGR of 3.94% to reach USD 223.96 billion by 2030.
What is the current California Freight And Logistics Market size?
In 2025, the California Freight And Logistics Market size is expected to reach USD 185.11 billion.
Who are the key players in California Freight And Logistics Market?
Agramont Worldwide Logistics Inc, Flexport, SHIPHYPE Fulfillment, UPS and AP Express Logistics are the major companies operating in the California Freight And Logistics Market.
What years does this California Freight And Logistics Market cover, and what was the market size in 2024?
In 2024, the California Freight And Logistics Market size was estimated at USD 177.82 billion. The report covers the California Freight And Logistics Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the California Freight And Logistics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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California Freight And Logistics Market Report
Statistics for the 2025 California Freight And Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. California Freight And Logistics analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
