Freight forwarding involves the planning, coordination, and transportation of commodities from manufacturer to consumers or retailers. It helps to smoothly transport goods between suppliers, manufacturers, warehouses, distribution centers and final customers across the world by consolidating and coordinating individual shipments. With the increasing international trade, globalization of businesses and growing e-commerce industry, the demand for logistics and freight forwarding services has risen sharply in recent years.
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 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising international trade has been a key driver of growth for the Global freight forwarding market size. With increasing globalization, many companies are expanding their operations overseas to lower costs and tap new markets. This has resulted in higher volumes of goods being shipped across borders. Furthermore, the rapid growth of e-commerce has enabled more consumers globally to purchase goods from international online sellers. The need to consolidate and coordinate these small individual shipments efficiently and cost-effectively has benefitted freight forwarders significantly. Their role in simplifying international trade processes for businesses and handling larger volumes of imports and exports has become increasingly important. This trend is expected to continue propelling demand for freight forwarding services over the forecast period.
SWOT Analysis
Strength: The freight forwarding market benefits from established infrastructure and an experienced global network of freight forwarders. It facilitates the seamless movement of cargo across borders.
Weakness: Market fragmentation leads to intense competition. Freight forwarders face pricing pressures due to overcapacity in some trade lanes. Documentation errors and delays remain challenges.
Opportunity: Growth of e-commerce and just-in-time manufacturing are increasing freight volumes. Multi-modal transportation opportunities exist as carriers integrate different modes. Blockchain technology can bring transparency and efficiency gains.
Threats: Economic slowdowns reduce global trade and impact freight demand. Geopolitical tensions pose risks to supply chains. Rising fuel costs and regulations increase operating expenses.
Key Takeaways
The global freight forwarding market is expected to witness high growth over the forecast period driven by increasing cross-border trade volumes. 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 10% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates the market owing to the presence of key manufacturing hubs and busy maritime routes. China, Japan, and India are some of the largest contributors to freight forwarding in the region.
Key players operating in the freight forwarding market are Abbott Laboratories, Amgen Inc., GlaxoSmithKline, Johnson and Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Inc., Roche, and Sanofi €“ Aventis. These companies are focusing on multi-modal transport solutions and digitization initiatives to enhance efficiency, visibility, and customer experience in a complex operating environment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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