China Digital Freight Forwarding Market Size

China Digital Freight Forwarding Market Analysis

China's digital freight forwarding market is expected to register a CAGR of over 6% during the forecast period.

The COVID-19 pandemic impacted the freight forwarding market due to lockdowns and entry restrictions imposed by the neighboring countries. After the easing of lockdown restrictions, freight forwarders witnessed significant growth in the country, and the pandemic created an opportunity to freight forwarders to adopt digital technologies to meet the increasing demand.

Moreover, to face the multiple challenges posed by the pandemic, China's logistics sector is adopting digital technologies to boost efficiency. In addition, the country's government also supports digital third-party logistics platforms and develops a batch of digital platforms and supply chain enterprises with global influence.

Furthermore, Chinese freight forwarders are leveraging digital technologies to help boost logistics efficiency in regions affected by the pandemic. For instance, Full Truck Alliance, a Chinese truck-hailing company, utilizes digital technology to provide apps that connect many truck drivers with merchants. The digital platform also enables truck drivers to find goods quickly and reduce empty-load rates and fuel consumption. However, in 2022, according to the General Office of the State Council, China released its first five-year plan to modernize its logistics sector by the end of 2025. The plan includes promoting the digital transformation of the logistics sector, increasing the quality and efficiency of services, etc. Thus, digital transformation is likely to drive China's freight forwarding industry.