Freight Forwarding Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Freight Forwarding Market is segmented By Mode Of Transport (Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding), By Customer Type (B2C, B2B), By Application (Industrial And Manufacturing, Retail, Healthcare, Oil And Gas, Food And Beverages and Other Application), By Geography (North America (US, Canada, Mexico), Europe (Spain, Germany, France, UK, Italy and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, South Africa, Morocco, GCC, Rest of LAMEA)). The report offers market size and forecast values (USD billion) for all the above segments.

Market Snapshot

Freight Forwarding Market Summary
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >3.6 %
Freight Forwarding Market Major Players

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Market Overview

The freight forwarding market is expected to record a CAGR of more than 3.6% during the forecast period (2022 - 2027).

The COVID-19 pandemic led to global lockdowns, and commercial activities halted and challenged the economy, disrupting the Freight forwarding market with massive changes in operations, supply chains, regulations, and workforce requirements. Air and ocean freight volumes fell significantly in 2020; total ocean freight container volumes handled at Chinese ports dropped by 10.1% in the first few months of 2020. Air freight volumes reported a sharp decrease of 19% in March 2020 due to a sharp reduction in commercial flights and a drop in manufacturing volumes.

The growth in international trade volumes is a significant driver for the freight forwarding market. Moreover, the rise in trade agreements between countries contributes to the market's growth. World Trade Organization (WTO) reported the total volume of global merchandise trade increased by 8.0% in 2021, and world exports of intermediate goods (IGs) increased in the third quarter of 2021, with a sharp increase in the trade of medical items and metal products across all regions. Trading globally provides the consumers and countries exposure to goods and services that are either unavailable or costlier domestically. However, the market (especially the air freight forwarding market) is backed by the manufacturing and e-commerce industries, as reported in the International Air Transport Association (IATA) in January 2021.

Scope of the Report

Freight forwarders are an integral part of the supply chain and act as intermediaries between the company that makes the shipment and the final destination of the goods. It is the coordination and shipment of goods from one place to another via single or multiple carriers via air, marine, rail, or highway. The report provides a complete background analysis of the global freight forwarding market, which includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles. The report also covers the impact of COVID-19 on the market.

The Freight Forwarding Market is segmented By Mode Of Transport (Air Freight Forwarding, Ocean Freight Forwarding, Road Freight Forwarding, Rail Freight Forwarding), By Customer Type (B2C, B2B), By Application (Industrial And Manufacturing, Retail, Healthcare, Oil And Gas, Food And Beverages and Other Application), By Geography (North America (US, Canada, Mexico), Europe (Spain, Germany, France, UK, Italy and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Rest of Asia-Pacific), LAMEA (Brazil, Argentina, South Africa, Morocco, GCC, Rest of LAMEA)). The report offers market size and forecast values (USD billion) for all the above segments. The report provides market size and forecast values (USD billion) for all the above segments.

By Mode Of Transport
Air Freight Forwarding
Ocean Freight Forwarding
Road Freight Forwarding
Rail Freight Forwarding
By Customer Type
B2B
B2C
By Application
Industrial And Manufacturing
Retail
Healthcare
Oil And Gas
Food And Beverages
Other Applications
By Geography
North America
United States
Canada
Mexico
Europe
Germany
France
United Kingdom
Rest of Europe
Asia-Pacific
China
Japan
South Korea
India
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
GCC
Rest of LAMEA

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Key Market Trends

Booming E-commerce Sector and Rising Cross-border Trade Activities

With the rapid expansion of the e-commerce business, trade activities have expanded, necessitating the need for a systematic supply chain and logistics to provide smooth end-to-end transfer of goods has resulted in the expansion of the Freight Forwarding Market. Technological improvements like The Internet of Things (IoT) in freight forwarding systems have transformed the industry.

Trade in Pharmaceuticals had increased in 2020, accounting for 2.2% of the market share in total trading goods valued at USD 616 Billion in 2021. Medical instruments hold a market share of 0.78%, valued at USD 216 Billion. The most-traded goods are cars, with Germany having 19.3% of the market share, valued at around USD 122.3 Billion worth of export of cars in 2021. This was followed by Japan at the second position with a market share of 12.8%, valued at USD 80.9 Billion in the same period.

UNCTAD reported that global trade reached a record high in 2021, valued at around USD 28.5 trillion, showing an increase of 13% relative to pre-pandemic levels. The E-commerce market value in India has significantly increased from USD 21.9 billion in 2018 to USD 84 billion in 2021. Due to restrictions in the physical market in the country, there was a record growth of 38.5% in e-commerce revenue.

Freight Forwarding Market: Market size of e-commerce industry from 2014 to 2020 (forecasts until 2027(in billion USD))

Asia-Pacific is Anticipated to Witness High Growth Through the Forecast Period

In the freight and logistics market, Asia-Pacific is the fastest-growing region globally due to the increasing logistics in ASEAN countries and the presence of major economies like China and India. Additionally, the high government support for the logistics sector in the region is also a factor boosting the industry growth. The Global ocean freights rate index has increased manifold by five times in two years in 2021, reaching 500.

China emerged as the largest production cluster, leading to increased trading partners and extending it to the resourceful African region. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), China’s European land bridge, and ‘One Belt, One Road’ are some of the key initiatives around the globe fostering the growth of the freight forwarding market. The Northeast Asia market has shown less growth. Both added capacity and new services negatively impacted rates, leading the market to remain challenged in the second half of 2022.

Also, leading countries in the region are observing faster technological integration in the logistics process. In India, 80% of freight moves by road, and the trucking industry is adopting industry-leading tracking technology to trace and predict the exact delivery times. Thailand is incorporating IBM and Maersk’s blockchain project to streamline its shipment monitoring processes.

Freight Forwarding Market: Third-party logistics market size in 2020, by region (in billions, U.S dollars)

Competitive Landscape

The Freight Forwarding market’s landscape is fragmented in nature with a mix of global, regional, and local players. Small- and medium-sized local players still serve the market with small fleets and storage spaces. However, the top 20 players dominate the market accounting for more than 50% of the total market. Leading players in the market include DHL Global Forwarding, Kuehne + Nagel International AG, DB Schenker, DSV, Expeditors International, and many more. As the freight forwarding market is growing steadily and there exists abundant opportunity, the players need to embrace technologies, become more digitized, and increase the scale and efficiency of their operations. Having a strong network spanning the globe is important for companies. International investors are increasingly interested in mergers and acquisitions in the ASEAN logistics market. Global logistics companies have been expanding in the ASEAN region because of increased commerce and trade activities.

Major Players

  1. Kuehne + Nagel International AG

  2. DB Schenker

  3. Bollore Logistics

  4. DHL Global Forwarding

  5. Nippon Express Co., Ltd.

Freight Forwarding Market Concentration

Recent Developments

May 2021: Kuehne+Nagel acquired Apex International Corporation. Through this acquisition, they will be able to provide compelling offers in the competitive Asian logistics industry, primarily in e-commerce fulfillment, hi-tech, and e-mobility.

June 2022: Time-critical logistics firm Global Transport Solutions (GTS) has acquired forwarder Cargo Holland. It specializes in airfreight solutions and is located at Schiphol Airport. The forwarder will be integrated into GTS’ 3PL logistics time-critical service provider, Best Global Logistics.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Method

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS DYNAMICS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Overview

    3. 4.3 Market Dynamics

      1. 4.3.1 Drivers

      2. 4.3.2 Restraints

      3. 4.3.3 Opportunities

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Technological Advancements in Freight Forwarding

    7. 4.7 Overview of Global Freight Forwarding Market

    8. 4.8 Market segmentation of Freight Forwarding

    9. 4.9 Digitalisation of Freight Forwarding Market

    10. 4.10 Pricing Analysis and Revenue analysis of Freight Forwarding Market

    11. 4.11 Regional insights onFreight Forwarding Market

    12. 4.12 Pricing Analysis of Freight Forwarding Market regionwise

    13. 4.13 Impact of COVID-19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Mode Of Transport

      1. 5.1.1 Air Freight Forwarding

      2. 5.1.2 Ocean Freight Forwarding

      3. 5.1.3 Road Freight Forwarding

      4. 5.1.4 Rail Freight Forwarding

    2. 5.2 By Customer Type

      1. 5.2.1 B2B

      2. 5.2.2 B2C

    3. 5.3 By Application

      1. 5.3.1 Industrial And Manufacturing

      2. 5.3.2 Retail

      3. 5.3.3 Healthcare

      4. 5.3.4 Oil And Gas

      5. 5.3.5 Food And Beverages

      6. 5.3.6 Other Applications

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 France

        3. 5.4.2.3 United Kingdom

        4. 5.4.2.4 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 South Korea

        4. 5.4.3.4 India

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 LAMEA

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 South Africa

        3. 5.4.4.3 GCC

        4. 5.4.4.4 Rest of LAMEA

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Kuehne + Nagel International AG

      2. 6.2.2 DB Schenker

      3. 6.2.3 Bollore Logistics

      4. 6.2.4 DHL Global Forwarding

      5. 6.2.5 Nippon Express Co., Ltd.

      6. 6.2.6 Dsv Global Transports and Logistics

      7. 6.2.7 The Maersk Group

      8. 6.2.8 C.H. Robinson

      9. 6.2.9 Panalpina

      10. 6.2.10 United Parcel Service

      11. 6.2.11 FedEx Corp.

      12. 6.2.12 Walmart Group

      13. 6.2.13 MGF (Manitoulin Global Forwarding)

      14. 6.2.14 Hellmann Worldwide Logistics

      15. 6.2.15 Expeditors International

      16. 6.2.16 Dachser

      17. 6.2.17 Imerco

      18. 6.2.18 Sinotrans India Private Limited

      19. 6.2.19 CEVA Logistics

      20. 6.2.20 Uber Freight LLC*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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Frequently Asked Questions

The Global Freight Forwarding Market market is studied from 2018 - 2027.

The Global Freight Forwarding Market is growing at a CAGR of >3.6% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Kuehne + Nagel International AG, DB Schenker, Bollore Logistics, DHL Global Forwarding, Nippon Express Co., Ltd. are the major companies operating in Global Freight Forwarding Market.

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